Cloud computing allows companies to consume computing resources as a utility – in the same way they do electricity or water. Recent developments have helped make this a better option for many businesses than setting up and running their computing infrastructure in-house.
The growth of SaaS has been fuelled by:
The major benefit of SaaS is that you have no hardware or software to buy, install, maintain or update – so as a customer there’s little to see until you actually start using the software. Here are some common features of SaaS services.
In the past, businesses bought and relied on packaged software – from multi-application systems covering spreadsheets, databases and email to specialist packages for particular tasks like project management or business intelligence.
Packaged software – the drawbacks
To use sales and marketing as an example, a business may have used on-premises software for CRM.
Learn more about Sales Cloud and the benefits of cloud-based CRM:
The diagram shows how responsibility shifts from your business to the SaaS vendor – which potentially also reduces risks for your business too.
Increased efficiency and cost effectiveness are the reasons many businesses give for turning to cloud-based SaaS solutions. The advantages include:
Cloud computing and SaaS have come a long way in a short time. Increased awareness and uptake has accelerated the growth of SaaS products and led to the rise of SaaS Integration Platforms (SIPs) such as Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). Companies will continue to outsource non-core IT activities to specialist service providers who can do it better – as our diagram shows. The cloud approach can help companies develop end-to-end integrated solutions and allow them to concentrate on what they do best, leaving a wide range of hardware and software IT issues to service providers.
With companies adopting various "aaS" services, long-term relationships with service providers will grow – which in turn will lead to innovation as customers' growing needs are understood and provided for.
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