The way businesses will consume software going forward is changing and 2017 is a pivotal year for this process to get underway. One of the main catalysts for this movement is Microsoft changing the way they compensate resellers of their software. Also as ISP’s, or internet service providers, are able to deliver more speed and efficiency to customers allowing for the SaaS model to see greater adoption rates. Microsoft is not the only software company going down this path either, Adobe, AutoDesk, SAP, Veeam, EMC, Citrix, and many other companies have been moving to a SasS, (software as a service) model for years. The SaaS model is a software licensing and delivery model where software companies centrally host their software and offer users a subscription service for consumption. Many cloud providers also offer infrastructure as a service, and platform as a service, (IaaS and PaaS), yet those are topics for an expanded discussion.
Often, when major software companies change their pricing and/or consumption models, it can cause some aggravation and headaches. However, the Cloud Service model, or SaaS model, offers a great deal of benefits for companies willing to make the jump. One of the main advantages for a business is moving from a capital expenditure model, where all hardware, software, and licensing is usually purchased up front at certain times of the year, to an operational model where businesses pay per month for their software and hardware consumption. At the core, this allows customers to scale their costs to the needs of the business quickly as market conditions change.
Other benefits to a company that adopts a SaaS model for business software include running the latest versions of that software and avoiding the costs of on-site upgrades. Second, adopting a SaaS model for software allows companies to innovate and experiment with new software with little commitment. Finally, firms can expect reduced overall IT running costs with less hardware and software to maintain and update.
Contact us to learn more about how you can save money by bundling your software and adapting our SaaS model.