Thanks to the public cloud, which has amassed around $150 billion in annual revenues, the software as a service model has grown tremendously. In fact, it’s grown by approximately 20 percent a year for the past five years. The public cloud currently houses over a third of all applications used worldwide, making it a significant contributor to the success of software as a service (SaaS). Has your organization begun to take advantage of this phenomenon?
What is SaaS?
SaaS is a software that is accessed through the Internet. This is often provided through a service provider, a developer of the software or a third party authorized to sell or distribute it under certain conditions. The user can use the software as indicated in the service level agreement for a monthly fee. The cloud provider is responsible for hosting, management, maintenance, development, and security of the application, making it both an attractive and hands-off approach for businesses.
The Benefits of SaaS
A change from on-premise software hosting delivers three distinct benefits for your business. They are the following:
Issues with SaaS
Nothing is perfect, even though it seems SaaS provides perhaps the biggest edge you can think of for a software solution. Some organizations must adhere to compliance regulations, which can in-turn affect cloud-based deployment of specific data or functionality. Since most cloud-based SaaS offerings are deployed through the public cloud, users’ applications are accessed using shared resources, which might rub some organizations the wrong way. Here are some of the major problems created by SaaS:
Overall, software as a service can be a great value for your organization… if it’s managed properly. If the public cloud scares you, there is always the option to work with a third-party MSP who can host your services privately on their own server. SemTech IT Solutions can help you with this. To learn more, reach out to us at 407-830-1434.