Influencing ISV’s Business through SaaS adoption
In the growing IT market, SaaS (Software as a service) has become a topic of discussion for all small and big ISV’s. Most of the ISV’s are trying to switch from ASP (Application service providers) business to SaaS platform. Adoption of SaaS brings both technical and business changes for any established ISV. I agree that transition from an existing on -premises application to reliable and scalable software capable of supporting many customers simultaneously is way too challenging. However, similar to most forthcoming changes in IT industry, adopting SaaS also brings benefits.
Pros of SaaS Adoption
- No on-premises installation is required and the customer can directly access the application in cloud because of faster deployment.
- Reinstated modern application user interfaces, applications upgrades and stringent budgets are best met by SaaS based solutions.
- An ISV can offer a multitenant application to multiple customers increasing its customer base by entering new markets while letting them pay for only what they use rather than buying long term licenses.
- No longer is investment required for setting up datacenters or man power to manage on- premises applications because of the ease of software access on cloud platform.
- Becomes easy for ISV’s to upgrade the software applications deployed on the centrally managed datacenter rather than upgrading on individual customer basis. This makes easier for customers to avail the aids of new added features in an application.
- Customers gain access to use the software applications and modify the use depending on the application load/traffic affecting the business needs at different times. They only have to pay for what they use and need.
Undoubtedly, implementation of SaaS brings with it immense benefits to an organization but while dealing with SaaS there can be a few issues; an organization has to deal with.
Cons of SaaS Adoption
- Limited customization possible in a single multitenant SaaS application shared by multiple customers.
- Integration of SaaS based applications and on premises applications proves to be complicated as well as challenging.
- Geographical constraint lies when there is limited network bandwidth between the customer site and SAAS application deployment center resulting in lower performance of SaaS application.
- Data security and on time availability of application is a matter of trusting the ISV as heavy amount of confidential data on a multitenant application is used by multiple customers.
In conclusion, ISVs business move to embrace cloud based approach is highly encouraged but needs well understanding and knowledge of SaaS basics. Also an ISV needs to consider deciding factors for SaaS adoption and implementation; like best time for change, investment need, change in pricing, sales process, alliance with cloud platform provider etc. A decision based on deep and thorough research about the benefits SaaS services can bring to an organization can help an ISV to foresee its business growth.