Are You Confident That Your Digital Strategy Maximizes Revenue? Part 1
Part 1: Making the Move to SaaS
Author: Katie Hayes, Product Marketing, Model N
Note: This is part one of a three-part series of blogs focused on Model N’s SaaS delivery model, in an effort to define its value for our customers. To understand our delivery model, it’s important to first define the nuances of SaaS and its current value.
The need for instant, real-time data and information has increasingly become a necessity in our personal and professional lives, driving us to remain connected and “online” at all times. This necessity is further strengthened as technology advances and businesses move toward mobile-friendly services—making it nearly impossible to disconnect. In part to address this demand, lower costs, and diminish time spent in installation and configuration, many companies are using Software as a Service (SaaS).
At the risk of oversimplifying the term, SaaS avoids traditional software installation and on-premise maintenance as it can be easily managed in the cloud through any device with internet access. Through SaaS, companies are saved the inconvenience of only accessing the software through their local, on-premise device. SaaS is the driving principle for many companies, such as Salesforce, which owned 11.7% of the market in 2015, surpassing the runner-up by more than 3%.
Globally, the public SaaS industry earned $49.9 billion in 2016 and is projected to be valued at $175.2 billion by 2020, with its revenue expected to increase in the years to follow. The value of SaaS continues to expand across businesses of all sizes as there is a greater stability of updates, which can be delivered quickly through the company’s subscription. In an age of expecting immediate results, on-demand software products provide companies with a platform to seamlessly integrate with the latest update.
In addition to finding stability in updates, businesses are moving to the cloud to ensure disaster recovery systems are in place and to improve security. Initial concern over the security of the cloud has somewhat dissipated, as financial services companies such as ADP and cancer research centers like ISB fully utilize the services of the cloud, making it the obvious next step for many industries.
Sources: Statista, ITCandor