SaaS is delivering centrally hosted applications over the internet as a service. Helping you reduce your efforts in the complex process of installing and maintenance management of any hardware or complex databases. In this growing Market and competitive environment Businesses need to cope by keeping a step ahead of the competition. As the subscription economy has arrived SaaS monetization provides a platform that enables you to manage subscriptions, depending on the service, package, and other parameters.
Reasons to move to cloud and invest in SaaS monetization
Cost Reduction:- The setup cost for SaaS application is comparatively a very less than on-premise systems while some service providers also provide it free of cost. As it’s a cloud-based service the cost of customization is very less also less time is required for setup and installation.
Space Reduction:- While the traditional systems occupy physical space for functioning. In a cloud-based system the vendor handles all the necessary space along with server security.
Performance Management:- As the cloud-based applications need no additional hardware requirement it saves maximum network performance as the vendor himself manages the performance application. SaaS application provides the same performance as that of on-premise being available everywhere net is available.
Transition to SaaS model
If already started using the SaaS model, no need to move all the customers at once to subscription base or stop the traditional approach. One can start by offering options and new products for customers with a subscription-first strategy. Start moving new products and customer contracts first and then convert existing customers. Also realigning your sales team and in the inclusion of cross-functional teams will lead to a smooth transaction.
Benefits of SaaS Monetization
Multi-Tenancy- The User interface can be customized by the tenants as per requirement saving cost, development, maintenance as the architecture can be updated once.
Less risk of Software Acquisition – As the entire on-premise architecture can be uploaded to cloud eliminating the acquisition risk. Resulting in decreased expenses for physical on-premise infrastructure.
Optimizing Availability, Scalability, and Elasticity – There should be a good plan for making data available while migrating the traditional on-premise system to cloud. With SaaS providing best mechanism to identify the failure in fetching the data through data centers for storage and traffic managers. Dividing the application on multiple elements will increase the application scalability in terms of data processing even without increasing cache size. Controlled number of web and worker role can accelerate elasticity in application execution possible with SaaS.
With all the above mentioned reasons and benefits of Saas Monetization businesses need to take under consideration transition to SaaS model asap.