The biggest driver of cloud service growth has been the acceptance and rapid adoption of Software as a Service (SaaS), which has become a common delivery model for many business applications. This is inclusive, but not limited to: collaboration tools, messaging software, accounting, HR software, customer relationship management (CRM) and business intelligence (BI) tools.
Adoption of New Technology Is Fast and Easy
SaaS implementation allows for the reduction of the overall time-to-value of business services, allowing the organization to realize value sooner than with traditional on-premises deployments.
Furthermore, management and operation activities of SaaS implementations are within the scope of the SaaS provider, who has established teams ready to assist with customer requests, including assistance with existing self-services routine procedures.
The net result is that typical IT lead time can be significantly shortened, if not near eliminated. Rapid cycle times for new and improved technology allow an organisation to meet market competitive demands and have the bandwidth throughout to focus on core competencies.
Managed Services, Availability and Updates
With a SaaS offering, the software in use will always be the most current, as the SaaS provider applies regular updates, maintenance, latest enhancements and attends to storage requirements. This service also includes proactive management of security and uptime availability.
The major benefit is that there’s no IT maintenance for your business, as this is completely taken care of by the SaaS provider.
Pay-As-You-Go: Scalable Usage
Cloud services like SaaS offer high scalability, which gives your organisation the option to access more, or fewer, services, features and capacity on-demand. There’s no need to invest in server capacity and software licenses – simply adjust the SaaS subscription.
The net result is that your organisation’s budget is spent on SaaS capacity consumed, and no unnecessary expenditure is incurred against idle capacity outside of peak usage.
OPEX vs. CAPEX
In today’s economy organisations are always looking for ways to preserve cash flow versus large CAPEX investments, instead opting to fund from OPEX to ensure financial flexibility.
Rapid changes are inherent to modern technology. Therefore purchasing new hardware every year will give you faster and more energy efficient power, but your SaaS platform solution will employ rapid upgrade cycles and improvements throughout the year with little or no upfront cost.
In such a context, it is better use of limited financial resources, in that it retains relevant, flexible technology which is not locked into longer cycles whereby the technology is quickly rendered obsolete.
The SaaS model therefore allows for better cashflow – an OPEX expense rather than a CAPEX.
In summary – with faster deployment speed, lower upfront cost, ongoing flexibility to scale up or down as organisational needs change, regular maintenance and software upgrades with little, to no involvement from the end-user, choosing the SaaS model can only be beneficial to the bottom line.
With the SaaS model, software is hosted, maintained, upgraded and secured by the provider – ensuring that it is reliable and meeting agreed-upon service level agreements, and keeping the application and its data secure.
SaaS has been building its case for rapid user acceptance and training for years. In 2014, an author at IT World Canada quotes the 2009 report:
“The ROI of Software-as-a-Service,” where Forrester noted that, “SaaS solutions typically offer seamless, automatic, frequent upgrades as part of the ongoing subscription charge. Because these upgrades happen more frequently and therefore incrementally than on-premises solutions, they typically have significantly reduced testing and end user acceptance and training costs.”
While there may be concern and resistance to IT security outside of your organisation’s direct control, SaaS has a much higher level of security than what can be provided in-house. Many SaaS providers will have redundant instances in very secure data centres in multiple geographies. Furthermore, the data is automatically backed up by the SaaS provider, creating additional security and peace of mind.
Evolv’s X as a Service
We ensure business continuity and security in a fast-paced business environment through our comprehensive X as a Service suite – cut down cost, pay only for what you use and enjoy the flexibility of our comprehensive cloud service technology.