Here’s Five Reasons to Transition to a SaaS Model Using the Cloud

Your customers demand easy to consume products and services that can be implemented and scaled quickly. A SaaS model is the key to achieving this, and SaaS is enabled by the cloud. In this blog, we’ll explain how and why.

The way we consume products and services has changed fundamentally. As consumers, we’ve replaced CDs with Spotify, DVDs with Netflix, and even food shopping with subscription services like HelloFresh. Today’s subscription economy has become the new normal for many of us in our day-to-day lives, giving us flexible access to the things we want and need, when we need them.

Software-as-a-Service (SaaS) is thriving in the subscription economy, as born in the cloud businesses like Google and Facebook have built entire operating models around delivering services in as flexible and scalable manner as possible. SaaS is a way of delivering applications over the Internet. Instead of asking your customer to install and maintain your software you provide access to it via the Internet, freeing them from the burden of software and hardware management.

If you are looking to explore the possibilities of delivering your products in a SaaS model, embracing the cloud will be a key tenet of your go-forward approach. In this blog we will take you through five reasons why transitioning to the cloud is essential to delivering your products through a SaaS model.

How Cloud Drives Your SaaS Journey

In order to deliver your software through a SaaS model, you will need to embrace the cloud. Your SaaS evolution aligns closely with your cloud evolution – to the extent that pure SaaS is impossible to deliver without cloud. There are many compelling reasons that are driving software providers towards the cloud. Here are the five key drivers we see at Six Degrees:

  • Customer demands for cloud-based software solutions. Customers have come to expect easy-to-consume service models in every aspect of their lives. They want the same level of services from their business bank as they do from their software provider, and to deliver this software providers need to release the burden of infrastructure management in-house to free resource and capital to reinvest into customer experience, retention and product development.
  • Gaining a competitive edge by adopting new technological capabilities. Offering your product as SaaS enables you to monitor performance and review how it is used compared to a customer-deployed solution. This means you can see the features your customers are using and pay more attention to those. This visibility enables you to focus time and effort into developing those with new releases and expanding these to delight your customers and attract new ones.
  • Enhancing compliance by meeting data protection, security and statutory requirements. As we’ll explore later, the risk of cyber-crime is something that no organisation today can ignore. Using a legacy on-premises infrastructure that requires patching or being responsible for securing your own cloud environment can be a tall order for many software providers that are typically resource-constrained and need to focus as much as possible on product development.
  • Increasing revenue growth with access to a more scalable and flexible platform. In today’s competitive markets, software providers need to embrace opportunity and scale their products to meet customer and prospect demands. The cloud is inherently flexible, enabling software providers to roll their products out to new customers and markets easily and quickly, with minimal up-front investment.
  • Reducing expenditure through lower deployment and support costs. You need to be laser-focused on product development functions that enable your solutions to evolve in anticipation of or in reaction to changing market demands. Cloud enables you to lower deployment and resource costs and associated management burden, enabling you to focus on what you do best.

The more you evolve your SaaS offerings, the more benefits you will realise from hyperscale cloud services. As we explore in our free eBook, though, there are a number of cloud considerations software providers should take before they begin their transitions.

Empowering You Beyond Cloud

SaaS is here to stay. Organisations in today’s volatile operating landscape are leveraging the subscription economy to consume applications in a more commercially flexible manner. And when deployments and moves adds and changes can be made same day, not next month, your customers will begin to demand the kind of agility from your software provider business that they receive from their born in the cloud providers.

In our new eBook we make the business case for SaaS, taking you through how SaaS evolves your products into services; the cyber security and compliance considerations you will need to make; the journey that Six Degrees can take you on from on-premises to cloud; and how you can develop a service model that’s right for you.

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