What is “…as a Service” and how can it help your business?
If you are a part of the cloud community, you probably have heard many acronyms ending in ‘aaS’, meaning ‘as a Service’. Much more than alphabet soup, these “aaS” technologies can help your business. Bicom Systems is dedicating a series of blog posts that will break down what all these ‘as a Service’ words mean and what they can do for your business.
Software as a Service, otherwise known as SaaS, is a good place to start to understand these acronyms. SaaS is one of the of the most popular forms of cloud computing and known as a software distribution model. The SaaS provider hosts applications for customers and makes them available to the end user through the internet. SaaS is provided on a subscription basis, where the provider handles the software from a hosted location and delivers it through the cloud. As a provider, the financial benefits are constant and the end user benefits from convenience.
Benefits for the End User
SaaS eliminates the need for:
- Expensive Hardware
- IT Maintenance
- Installation Fees
- Support Fees
- Software Licensing
Instead of having to purchase new software each time the latest version is released through the customer’s provider. This saves the customer time and money when the upgrade can be delivered seamlessly through the cloud service. Since the applications are delivered over the internet, the end users can access them from anywhere with internet access at any time!
Not only is it beneficial for the end user, but the reseller opportunities are endless! By adding MORE to your ‘bundle’ you will be able to:
- Reach Additional Customers
- Enter Additional Markets
- Increase Your Bottom Line
Benefits for the Reseller
SaaS resellers are constantly recurring commissions from their customers. Traditionally, clients would purchase the software from the provider and it would be a large, one-time payment. Since SaaS is hosted from the cloud, customers pay a monthly subscription to their vendors for this service. Although the payments are smaller than a large upfront cost, they ensure earnings more frequently.
The SaaS resellers do not own the license of the software and therefore can deliver it to their customers on a month to month subscription. The SaaS cloud model decreases the risk of someone using it illegally and without paying.
SaaS resellers have the ability to reach many customers. Since the product is an internet-based application, they can market their products across the globe to any customer who can access the internet. Before SaaS, vendors would have to sell the physical hardware to their clients which can add travel constraints and additional fees. Selling internationally has never been easier!
Today’s organizations are discovering the many benefits “as a service” technologies. Instead of doing everything in-house and spending unneeded resources, companies can benefit greatly by purchasing services through providers. As a Service models have the ability to collaborate like never before by connecting users and devices at any time and anywhere. The customer will only have to pay for the services they need, resulting in easier flexibility, scalability and a reduction in expenses. The innovation and creativity offered by these as a service vendors will give your company the competitive edge it needs!
Stay tuned for Part Two of this ‘as a Service’ blog post series when we discuss ‘UCaaS’, Unified Communications as a Service.