Decoding How SaaS will Revamp Organizations Post Pandemic
SaaS is a flexible monthly subscribing model that eliminates the need to maintain hardware.
The COVID 19 outbreak has compelled every organization to work remotely. This means that organizations which were earlier sceptical about adopting cloud services have now realised cloud to be the only feasible option to continue operations. It has been months since the novel SarsCov-2 outbreak disrupted the usual organizational workflow. And despite a potential COVID vaccine on the way, this trend is observed to be the new normal for many organizations. Additionally, with incidents of cyberattacks, and malware heightened due to dispersed remote work, enterprises are relying on the cloud for secured business operations.
As businesses are shifting to the cloud, the industry is witnessing an increase in cloud revenue. A survey report by the IT asset management firm Snow Software indicates that 82% of the surveyed IT leaders have ramped up their cloud in response to the pandemic, whereas 66% leaders observe that cloud adoption has accelerated off-premise usage of technologies.
The cloud platform offers three services: Software as a Service(SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). Of this, the SaaS model has been widely adopted by start-ups and enterprises during the pandemic. The global software as a Service market size is expected to increase from US$158.2 billion in 2020 to US$307.3 billion by 2026, at a CAGR of 11.7% during 2020-2026.
What is the SaaS model?
A Software-as-a-Service (SaaS) model is a software distribution model, where third-party provides applications such as software and services for the customers over the internet. This model eliminates the need to maintain hardware, software licensing, installation and support. Additionally, with its flexible payment module, the enterprises subscribe to the services monthly, thus eradicating the traditional module of one-time expensive service. Through this approach, the organizations, explicitly small enterprises and start-ups manage their budget are unburdened about the expenses of hardware payment.
Additionally, unlike any other service model like PaaS or IaaS, SaaS allows integration of different software tools in the existing application through Application programming interface. IBM, Oracle, Microsoft, Fujitsu, and Salesforce amongst others are some of the key players offering SaaS services.
Software as a Service model is heavily utilized in Customer Relationship Management, Enterprise Resource management, Human Resource management, email, sales management, financial management, billings and collaborations.
Artificial Intelligence and SaaS Model
Artificial Intelligence and its subsidiaries are driving digital transformation across the world. Still evolving, they have permeated almost all the sectors. Many companies are integrating artificial intelligence into the SaaS model to drive automation and analyse customer behaviour and patterns. With its advanced neural network artefact, organizations can identify anomaly within the datasets.
By integrating machine learning into the SaaS model, the responsiveness in customer service reports and applications gets automated. By integrating natural language processing, customization can be improved by automatically processing human speech patterns and voice control. AI also speeds up the internal processes and operations of the SaaS model, thus deriving results with accuracy.
SaaS and digital Gadgets
Digital Gadgets such as mobile phones and tablets will be amongst the driving forces, accelerating SaaS adoption. As the world is moving towards a more portable approach, most operations are carried through mobile phones and tablets. And this is not exempt for SaaS providers and customers. As some organizations have already deployed this nascent and unique approach, many organizations are strategically planning to transit SaaS over the digital gadget.
By integrating SaaS services as mobile applications the telecommunication adoption will be accelerated significantly. Many start-ups are opting to provide telemedicine and telelegal pieces of advice, due to COVID 19. Owing to the faster connectivity with a mobile phone, a SaaS will enable speedier telecommunication services.
It is a common myth, that SaaS provides only one business application to the user or enterprise. Many service providers and organizations are integrating the software with tools such as retail analytics, business analytics, supply and chain analytics, and customer analytics amongst others. Organizations are moving from a horizontal SaaS approach to a Vertical SaaS approach.
Vertical SaaS is more flexible and cost-effective. It aids the organization to understand customer’s behaviour and patterns through customer data and intelligence. Additionally, it allows for advanced data governance and improved business value.
The businesses are distributed into a various segment, and every segment is paramount for earning maximum business value. As often organizations are unable to focus on all the segments, the concept of micro SaaS comes into the picture.
Coined by Tyler Tringas, Micro SaaS model involves small teams into the specific niche to solve business problems using limited resources. As teams often work in smaller niche using micro SaaS model, they have more freedom to work the way they like. The team is also able to deliver the product with improved accuracy and with limited errors through micro-SaaS models.
Tyler Tringas have defined Micro SaaS as “It is a software as a service business owned and operated by one person or a small team. These businesses are location-independent, high margin, low-risk with predictable recurring revenue.”