By Tom Brand, business development manager at Pulsant
Taking a look at the IT landscape today and it’s easy to see why SaaS is proving to be such a popular solution for end-user customers. Its benefits include versatility, cost savings due to its pay-as-you-go model, and scalability. For vendors and service providers, adding SaaS to their portfolios is a natural step. Indeed, over the last few years ISVs in particular have spent tremendous time and effort in developing SaaS solutions.
Their success? Let’s just say that while some have made the transition well, there are also those organisations that are still undergoing this change, and yet more that are finding the process a little more challenging than anticipated. This shift is more than a move from selling an application to supporting a service — it’s a complete transformation in company culture, sales environment and in operation. One of the main obstacles is developing legacy on-premise code and architectures to suit this new model. In addition, SaaS also means a change in the way service is delivered, sales and marketing is carried out, revenue models and even remuneration.
The good news is that the potential in the market is definitely there — the IDC forecasts the market for SaaS and cloud software will exceed $100 billion in the next two years and SaaS will become the dominant model of application consumption for 80% of organisations by 2018.
So, in order to capitalise on this opportunity there’s a continued drive to develop or improve those SaaS offerings. But what should organisations be focusing on? What are their priorities? How can they maintain quality of service delivery? How can they ensure compliance? Why is it important to harness the power of big data?
We aim to answer these and other questions in our upcoming blog series aimed specifically at ISVs starting the journey, as well as SaaS providers who’ve already made the transition.