Since the term Software as a service (SaaS) was first used in 2005, much has changed about the concept and its meaning. Understanding this part of a growing trend is essential in ensuring business growth, especially at a time when cloud computing is growing faster than ever before.
Let’s start with a definition: Software as a Service SaaS is a delivery model in which software is licensed to customers using a cloud-based system. End users are able to access selected applications via a web browser. Famous Software as a Service examples include Google Workspace, Microsoft 365 or Adobe Creative Cloud.
Benefits for using Software as a Service providers
The Software as a Service business model is an interesting alternative to the standard installation of software. End users profit from a range of this solution’s advantages. Here are some examples:
- Costs: In the Software as a Service business model, end customers pay a monthly subscription. They avoid the costly process of application implementation. Additionally, Software as a Service pricing models can depend on the level of use and include costs of service and support, so businesses don’t need to allocate these tasks to their IT department.
- Access to advanced applications: Customers have access to powerful tools without having to install, update, and maintain them.
- Timesaving: Applications are available immediately. Besides, they are designed for usability, which allows users to focus on working on the task at hand rather than “grappling” with the application.
- Always up to date: End customers have no worries concerning updates or legacy software. They are automatically included in Software as a Service solutions.
- Access to applications from anywhere: The solution is perfect for remote working as all data is stored in the cloud so employees can access the applications from anywhere and from any device connected to the internet. This also means that, in case of any type of hardware failure, data loss will not occur.
- Security: SaaS services are provided by secure IT systems that can satisfy the needs of the most demanding customers.
- Flexibility: SaaS packages are scalable and can easily be adjusted as the company and its demand grow, or vice versa. All it takes is a simple upgrade to an existing plan or subscription. This is particularly useful for companies that have strong seasonal trends, allowing them to flexibly cut down on subscription costs.
- Availability: SaaS applications are designed to be available at all times. Vendors ensure a high level of reliability by protecting business continuity even in the event of natural disasters.
The Software as a Service industry is a great development for small and medium-sized businesses (SMBs) – it allows them to focus on growing their business. Besides, many of them have very limited time, resources or/and level of expertise. Costs, security and usability of SaaS are therefore an enormous advantage for them.
What are the benefits of Software as a Service for resellers and how can ALSO help?
The future of SaaS and cloud solutions is bright. So, resellers who care about having future-oriented innovative solutions in their offering which at the same time demonstrate their modern approach to cloud solutions, should seriously consider SaaS.
Resellers offering SaaS solutions in their portfolio can observe an increase in revenue over time as more and more companies opt for this approach. Additionally, with the traditional software model, resellers spend large amounts of money on customer acquisition and for perpetual licensing. With the SaaS solution, when new customers come on board, resellers continue to earn revenues from initial customers without having to reinvest in customer acquisition.
Software as a Service allows for a steady revenue stream with much more business planning ability. In addition, with SaaS, the role of resellers is transformed from an external supplier to an internal partner and consultant, which also makes them more difficult to replace.
Worth noting is the Cloud Solution Provider (CSP) program, introduced by Microsoft in 2015. It enables partners to sell and implement Microsoft’s most popular cloud solution (i. e. Azure, Office 365, or Dynamics 365). This allows partners to build stronger relationships with their customers by offering them support and being close to them throughout the service lifecycle.
ALSO offers Software as a Service solutions in its Cloud Marketplace. Resellers use the Cloud Control Panel to develop, drive and manage the entire sales process, from very easy drag-and-drop offer-preparation through roll-out of the cloud services to performance-reporting and billing.
