Software as a Service (SaaS) has been seen by many businesses and software developers as the new direction for productivity tools in today’s cloud-driven environment. As an example, Microsoft recently moved towards the SaaS model with its Windows 10 operating system. There are plenty of reasons why software companies are moving towards SaaS, many of which have a tremendous impact on businesses both large and small.
For starters, the move to the cloud-based subscription model makes it easier for businesses looking to downsize or even eliminate their in-house IT departments. The SaaS model allows businesses to license software and have third-party service providers manage their IT needs more effectively.
The cloud-based subscription model also opens the door for software licensing based on consumption needs. Businesses can license software for select projects and terminate those licenses when projects are complete. This gives organizations greater flexibility and improved cost management.
Microsoft’s success with its cloud-based Office 365 suite has had a major influence on the company transitioning its Windows operating system to SaaS. The company’s decision also coincides with the recent shift in business philosophy due to the growing influence of the cloud. Businesses ranging from small firms to large-scale enterprises have made the transition to the cloud, and many aspects of their operations, including customer relationships, social media, and content management, are now completely within the cloud-oriented SaaS environment.
This change in the technology landscape has far-reaching impact. As a growing number of resources become cloud-based, there will be fundamental shifts in the way people interact with technology and vice versa. This is the basis of the Internet of Things (IoT), which seeks intermarriage and interconnectivity between people, technology, and everyday objects.
No More Boxes?
The act of buying software in shrink-wrapped boxes is already becoming a thing of the past thanks to digital distribution. But the ongoing shift towards SaaS as the basic model for software will eventually lead most, if not all businesses to embrace some form of “cloud-only” policy, where software is merely licensed, not owned, and said licenses are managed by external IT service providers.
There are plenty of benefits to this approach. A cloud-centric subscription-based access model ensures that users enjoy a seamless experience across a multitude of commonly-used business devices. Not only does this guarantee virtual access from any given location, but uninterrupted workflow is also guaranteed for remote employees. Businesses benefit from the services portion of the SaaS relationship, with third-party service providers offering their IT expertise in managing license deployments and other aspects of the software and application experience.
As Microsoft and other software vendors utilize SaaS to enhance their offerings, service providers will play an important role in managing feature implementations and upgrades on behalf of their clients. Contact us at eXemplify today for more information on SaaS and how it can benefit your organization.