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  • Houman Asefi

The End Of SaaS

Infrastructure as a Service was the first incarnation of cloud computing, and many people are still looking for answers to questions about technology. While software-as-a-service (SaaS) has been around for some time, the growth of PaaS and SaaS is driven by a growing ecosystem of end-users - users who simply want their applications to run on a scale. This business model has created a huge opportunity for developers: 33% of companies use more than twice as much software as in 2016, and about three-quarters of these companies will have almost all their apps in SaaS by 2020, according to Gartner. In recent years, however, it has overtaken - premise software deployment to make the environment more attractive to developers and businesses alike. [Sources: 0, 2, 3, 5]





In fact, Cisco estimates that 59% of all cloud workflows will be shipped by the end of this year. For existing SaaS solution providers, we expect a continued influx of starters who consider their solutions to be somewhat better. The new decade will be a spectacular one for SaaS and we expect it to flourish rapidly over the course of the decade. According to Gartner, SaaS revenues are expected to reach $151 billion by 2022, but this is not just true for the cloud market - only for the business-to-business (B2B) market. [Sources: 12, 13, 16]

One thing to bear in mind when selling a SaaS product is that the SaaS package tends to be so large in terms of features that it extends the sales cycle while prospective buyers negotiate the features they need for their business. [Sources: 11]

Business users, on the other hand, can subscribe to SaaS software on a monthly or annual basis, and if a customer is unable to engage due to training or support problems, this has a negative impact on their business. When a SaaS company needs renewals, existing customers become potential customers for a long time, which is usually good for the business, but not so good for the customers. [Sources: 6, 12, 17]

When we talk about businesses - about B2B SaaS sales at the level, there's a lot of money left. With SaaS spending on increasing, the scramble for financial accountability for each SaaS transaction is the most pressing need for many companies. [Sources: 2, 9]

As more and more companies and organizations move to the cloud, there are some common mistakes we see with cloud SaaS vendor management. When you are a manager considering a switch from SaaS to BI solutions, you need to ask yourself whether you can quickly identify which SaaS offering is right for your company. I advise executives who may be considering moving their business to the cloud - just one solution, such as a BI solution or a cloud service provider. You do not know all the details of what you know about SaaS, or even the specifics of your company. [Sources: 4, 8, 10]

This is different from the world of enterprise software - companies can, for example, write their own software tools and use the SaaS provider's API to integrate these tools into a SaaS offering. In particular, one of the things that I think is very important in developing a business-centric, SaaS-based solution is that it allows you to focus on running your business. With the existing SaaS management platform, you can quickly identify and edit new SaaS applications that are added to your tech stack. [Sources: 2, 10, 18]

This creates stable income for the SaaS company, but also means that the investment prospects are quite high. SaaS customers spend tens of thousands of dollars on their software subscriptions. This means that a company optimized for growth will almost always spend more money than it receives from its customers. [Sources: 1, 11]

One of the advantages of SaaS over traditional software distribution methods is that users can unsubscribe when they no longer need the service. It also seems that software sold under other billing models is not so important for users who are not sure whether to take over the software in the long term or have only a short-term need for it. [Sources: 1, 6]

Because a subscription - based on the SaaS model - means that you can leave the service as soon as you are dissatisfied. If we compare it to shipping and handling, I would say that SaaS eliminates all of that, but it is a recurring service. The sale does not end with the signing of the original contract. [Sources: 8, 10, 17]

The SaaS development lifecycle is like the traditional iterative software development process, but with an additional phase. When you switch to the cloud, you lose release management capability, and your software updates are under a constant barrage of changes due to the ever-changing nature of cloud computing. Many of you took note when Work Bench's recent report predicted the demise of the software licensing and delivery model used by many of our customers, including Microsoft, Google, Apple, Microsoft Azure and Amazon Web Services (AWS). [Sources: 7, 14, 15]






Sources:

[0]: https://www.belighted.com/saas-guide-to-software-as-service

[1]: https://stripe.com/atlas/guides/business-of-saas

[2]: https://www.beyondid.com/post/three-challenges-created-by-the-rise-of-saas

[3]: http://www.itmanagerdaily.com/what-is-saas/

[4]: https://zylo.com/blog/critical-elements-saas-contract/

[5]: https://www.nimbix.net/paas-saas-preferred-cloud

[6]: https://saasholic.com/understanding-saas-benefits-and-challenges-823439b6440

[7]: https://apprenda.com/library/software-on-demand/saas-softwareasaservice-development-platform/

[8]: https://saylordotorg.github.io/text_information-systems-a-managers-guide-to-harnessing-technology-v2.0/s14-08-saas-not-without-risks.html

[9]: https://winningbydesign.com/how-to-systematically-increase-sales-in-your-saas-business/

[10]: https://www.domo.com/learn/webinar-saas-bi

[11]: https://www.nutshell.com/blog/saas-sales-complete-guide/

[12]: http://www.saasmarketingstrategy.com/saasmarketingstrategy/tag/customer+acquisition

[13]: https://surveysparrow.com/blog/saas-trends-2020/

[14]: https://www.techrepublic.com/article/why-the-growth-of-saas-means-end-users-lose-control/

[15]: https://openviewpartners.com/blog/the-end-of-saas-not-so-fast/

[16]: https://veracityit.com/2018/07/27/speaking-saas-paas-cloud-computing/

[17]: https://www.givainc.com/wp/save-money-software-as-a-service-saas.cfm

[18]: https://searchcloudcomputing.techtarget.com/definition/Software-as-a-Service



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©2020 by Houman Asefi. 

Sydney, Australia