Why SaaS is growing faster than ever
SaaS has grown to become the world’s most popular software delivery model, and is showing no sign of slowing down. But what is it about SaaS and Cloud that makes it such a recipe for success?
The arrival of SaaS
When the concept of on-demand software first appeared on the scene to the wider market in the early 2000s, there were plenty of concerns around issues like data security, latency and uptime. Was this new model really as dependable as running your own local licensed software? And who owned responsibility for data in transit?
However, once the dust had settled and adoption rates increased, it became clear that SaaS was here to stay. The commercial benefits outgrew concerns across most industries, except for those subject to highly regulated constraints. And as the model matured, so did the usage.
Why SaaS keeps growing
Let’s take a look at the key reasons why the Saas model exploded in popularity, and why it continues to grow.
The typical SaaS customer can enjoy plenty of financial benefits to using SaaS compared to traditional software. There is a manageable, predictable subscription cost which includes every aspect of service delivery, hosting, support, upgrades and more. The low costs are inherited from the fact that the service provider is able to share their hardware, testing and delivery costs across a large user base.
For a growing business, the ability to quickly scale usage up and down without having to worry about spinning up new servers or adding storage is a key benefit. Scalability not only plays a key part in the strategic planning of a business, but can of course also offer a competitive advantage. In an ever fluctuating marketplace, SaaS helps organisations grow – and shrink – quickly.
Perhaps the most important benefit of SaaS is the simplicity of adoption, delivery and usage. As the software is delivered online, the business doesn’t have to worry about things like installing, upgrading or supporting the application; the user can just access it using a web browser from any location. In many cases this means that there’s no need for an in-house IT function to manage the application, which helps to keep the organisation streamlined.
Another reason why SaaS has become so popular is the rise of flexible working. The easier it is for the business to offer employees the ability to work remotely, the more they will allow them to do so. But it’s not only about convenience for staff. SaaS flexibility can also bring savings in many forms for the business, such as reducing the number of fixed office workstations and servers. Once people can access their business-critical applications from their laptop, phones and tablets, the whole concept of ‘office work’ evolves into a virtual business environment.
Most mainstream SaaS products on the market today have a level of security that would be very expensive to achieve independently for a locally installed application. They often run across separate datacentre locations that replicate the data and provide full redundancy in case one of them goes down. They provide continuous data backups, the latest security protocols, and service level agreements for uptime. Also, as data confidentiality is a growing area of concern, most cloud data centres now provide complete separation of data to satisfy stringent data privacy policies.While security was a roadblock for SaaS adoption for many years, this is now changing as the technology can cater for tougher demands and regulations.
SaaS removes the worry
Most modern businesses want to work with a suite of applications that don’t require them to have their own backups, storage and server rooms on site. They prefer not to have to worry about keeping their data safe in case of fire or flood at the office. SaaS offers the ability to remove that concern.
This of course doesn’t mean that SaaS doesn’t come with its own risks and challenges. The risk of unauthorised access is just as real – and hackers can target businesses, blocking their access to critical systems online. However, SaaS providers are constantly improving their security processes and individuals are becoming increasingly aware of keeping their devices safe and locked.
One thing’s for sure: SaaS will continue to grow.