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SaaS-Over the Years

There has been a drastic increase in the trend of enterprises and organizations migrating onto Cloud. And as it is being predicted for 2016 – “Next year will mark the start of the land rush of enterprise workloads moving into the cloud”, SaaS has become the new trend for the organizations in all the sectors.

Let’s first understand what SaaS (Software as a Service) is.

SaaS in a layman’s term means eliminating the need of maintaining hardware or software on premise and having access to the same applications via internet.

This would mean that one can:

  • Reduce the time to benefit- Reduce the time spent on installing and configuring hardware and software.
  • Lower Costs- No upfront fee for purchasing hardware is required. It also reduces the high cost of licenses and maintenance costs.
  • Scalability- As SaaS solutions provide scalability, users save the efforts of buying another server or software when the traffic reaches the peak.
  • Easy to useSaaS applications are self-serviced applications and have a smaller learning curve.

How has SaaS performed over the years

According to Gartner Research the software-as-a-service (SaaS) revenue in 2011 was $12.3 billion.

In 2012 it was forecasted to reach $14.5 billion and went up till $14 billion which was an obvious increase of 13.8 percent increase in the revenue. The SaaS software market increased up to 25 percent in 2013 to $59 billion.

In 2014, when the expected market was a total $75 billion, a Leading Digital Content Solutions provider was using incumbent infrastructure. The company wanted to tap on to a large base of small & mid-sized Publishers and Educational Institutes but was constrained by the traditional licensing model.

So the organization decided to migrate this platform to AWS Cloud and make the product a SaaS Application.

A few requirements for the company included:

  • Faster time to market
  • Re-architecting the application to make it into a SaaS
  • System to be able to support 400k users with 10% concurrency
  • Resource intensive multi-step batch processing

By doing so the company was able to Increase Sales Numbers, have the flexibility for Innovation, room for Growth, achieve high scalability and seamlessly release feature updates.

Using SaaS Application the organization was able to deliver timely & immediate on-boarding of large customers and also served over 100k users each.

According to Gartner, Inc. when worldwide SaaS-based delivery revenue is projected to reach $22.1 billion in 2015 and as Forrester research predicts that the market for SaaS would exceed $130 billion by 2020, do you want to avoid the huge capex?






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