Software-as-a-Service (SaaS) delivery model is still gaining in popularity and is replacing the traditional way of selling software based on the distribution of physical media. This is not surprising as SaaS offers many benefits to both users and software developers. The subscription-based pricing model, ease of use, the ability to constantly develop the product and use the latest version, freedom and mobility – these are only some of the advantages of this solution.
The number of products sold in the SaaS model continues to grow. It is both software intended for use in everyday life and specialized business solutions. Experts estimate that about 75% of companies use business applications purchased as SaaS. It is not surprising – the cost of purchasing or creating a dedicated solution is a much greater burden on the company’s budget than the monthly fee.
The SaaS model also facilitates market entry for software developers. Reaching potential customers has become much easier and less costly than with traditional software. SaaS is an opportunity for small businesses and startups to quickly introduce their products to sale, even on a global scale.
Challenges related to providing SaaS
Although creating and selling software in the SaaS model is easier and more accessible than in the case of the traditional distribution model, it also involves many challenges. Apart from the difficulties related to the creation of the product and marketing, the problem may be technological issues – how to manage different versions of the application, test, manage backups, and finally meet the growing demand, while not wasting resources on resources that will not be used at the beginning of the business.
Why is cloud computing the best solution for SaaS solutions?
Not every business offering software in the SaaS model has the option of hosting the service in its own data center. Only large companies can afford it. For providers entering the market with their product, the best solution is to use the services of public cloud providers who offer computing power on demand with consumption-based fees – IaaS (Infrastructure as a Service). Using cloud computing, we can determine what resources (number of virtual processors, amount of RAM and disk space) we need at a given moment, and then quickly and easily scale them when the need arises. The hourly pricing model means we only pay for the resources we actually use.
The challenges of using the public cloud
Cloud computing is a great solution for hosting software in the SaaS model. However, not every IaaS provider offers services tailored to the needs of a small business. What to look for when choosing a cloud?
Easy implementation. Some public cloud providers offer great solutions, but their configuration may be too complicated for a small company that does not employ a specialist experienced in handling such solutions. Make sure that the server configuration is as simple as possible.
Predictability of costs. IaaS pricing can be very complex. It is often difficult to even estimate the cost of using the infrastructure because it is influenced by too many factors. Choose a provider with a simple and clear price list.
Data center location. If you intend to offer your software to clients in Poland, choose a public cloud provider that has a data center in Poland. If your product is to be available globally – it is worth paying attention to the availability of locations around the world.
Vmgen offers infrastructure in over 30 locations around the world, including Poland, and the configuration of the server on our platform takes no more than a few minutes. It’s really easy with predefined resource packs. Check out our simple and transparent pricing where we publish the hourly price and estimated cost per month of virtual machine usage and start rolling out your SaaS software today.