As technological transformations inundate the IT realm, the demand for cost effective solutions is expected to fuel the growth of companies by almost 19.6% as per the report furnished by Vanson Bourne, a company engaged in providing real-time IT insights for its implementation and integration.
Top businesses, especially the software development companies are growing at a faster pace by relying on the model of on-demand rather than on-premise software solutions.
Nonetheless, there have been a larger strata of verticals in the tech domain that are yet to explore the unprecedented possibilities that S-a-a-S based or ASP platforms can bring and this blog will be discussing the benefits that one will get when they move from on-premise to on-demand cloud based software development solutions.
How S-a-a-S based Software Development Solutions Help Software Development Company?
On an average, enterprises across the globe are using more than 16 to 20 S-a-a-S based apps for running their day to day business activities. The increased reliance of enterprises to move from on-premise to on-demand demand for software development is because of the following reasons;
Minimal Capital Investment
Small startups have minimal fund access; until and unless they are well funded by VCs and Angel Investors, they have to rely on boot-strapping. For a build software development company, the core challenge is to minimize the cost and on-demand or pay-as-you-go-software solution prevents big investments by avoiding the need to setup the servers and other IT infrastructure. As a result of this advantage, startups, mid-sized enterprises and even SMEs have been using S-a-a-S solution for controlling capital investment
As per the latest acceptance trends of S-a-a-S, by 2020 the average annual investments on cloud-based solutions by software development company will be up by 60% of cloud spending. And, almost 73% of the organizations have admitted that they will be using all their apps that will be powered by S-a-a-S. Thus, this market is going to grow as the time passes.
In small enterprises, the expenditure can pose significant challenge to fund all necessary requirements; as a result, holding on to low investments options can bring considerable benefit to the organization. Having a cloud-based set-up rules away the need for the maintenance.
When the companies involved in development do not have to think about licensing, deployment, operational efficiency of IT, hardware and other scrap jobs, they can focus on their core operations of development.
In the S-a-a-S support system, the subscription-based revenue model keeps the business on the front foot as with changes in the business dynamics like growth and expansion, the enterprises can adjust with the subscription-based system. The outcome is best results for controlling the costs.
Better Space Management
The net management space for each office verticals in New York costs twice that much from that based in Chicago. As per the Square Foot report, average monthly rent per square foot in Atlanta for office space is close to 2$.
So, for a software development company, if they take somewhere around 500 square feet of space for the servers, it will cost them around US$1000. Just for deploying maybe one server room. If they want to expand that to maybe more space, it will push up the bill and eat upon the profits.
Now, when off-premise or on-demand solutions come in the picture like S-a-a-S, it will completely take away the challenges like maintaining the wiring, electricity, ventilation and other necessary details.
All these might cost heavily and with S-a-a-S as a solution, one is sure of not suffering to these challenges. As a result, it ends up being a more amicable and cost friendly solution for new startups and SMEs.
System Upgrades and Customizations
As per the IHS Findings, in the North America, the IT downtime can push away any enterprise from the competition and put them in the Stone Age, categorically. Yes, it almost costs US$700 billion in a year.
In small enterprises, it almost costs a million $ for one year. That’s quite a fortune; but relying on the on-the-demand-software-support system, many enterprises considerably save themselves from the challenges of maintaining and managing the technology that they use on a regular basis.
The upgrades and downgrades are scalable with off-premise “Software-as-a-Service solutions.” As it can always be adjusted as per the requirement of the organization, making it an amicable pick for the services and development that are engaged into. At times, when enterprises are using on premise software system, they need to run numerous checks and finally plan out to roll the updates across all systems. But having a cloud based solution can easily do away with this requirement. As a result, start-ups, SMEs and even some big MNCs have moved to cloud for the support that they need.
The pressing need of smart and scalable support will always push the cost of software development in the future. As AI, ML and Blockchain Technology are getting vibrant and cost-effective; they will go mainstream across all verticals. Cloud based solutions have paved the way for the enterprises to shift their focus to the core rather than having to think about maintenance and upgradation.
Software development companies have significantly benefitted and the trend will continue to roll more as the time passes. With greater inclination of the age towards technology, the SaaS business model can definitely see a brighter future ahead for the software development company.