Software as a service has been a known disruptor in the digital space for years. Since Salesforce entered the market with their sales and marketing tools, SaaS exploded into a $50 billion market and is expected to exceed $99 billion by 2020. With its simple user model and ability to completely customize software to unique customer needs and markets, it’s no wonder SaaS is climbing a steep path to growth.
Users are turning to SaaS solutions to solve a range of problems from office suites to marketing tools and healthcare to financial services. Aside from getting highly relevant and customized software, the biggest benefit of the SaaS model is its delivery as a service. In accessing tools via a web interface, it gives the user constant functionality of the tool and releases them from software and hardware maintenance and management.
For consumers, SaaS has a number of benefits. Among them the choice of a variety of SaaS offerings. The challenges start here for the SaaS provider.
SaaS revenue is primarily driven by adding new functionalities for their existing users (70-95%). This model incents the provider to constantly revise and update their software to make sure they have the best and most unique offering to retain and upsell their existing customer base.
Building a foundation for these SaaS companies to quickly develop, test, and deploy unique solutions starts with an agile SaaS strategy. But building that strategy isn’t as simple as you think. The challenges companies face to move seamlessly through development, test, and deployment environments without disrupting their live SaaS environment is a challenge in itself. To address this, SaaS companies must understand how they affect their business decisions and architect the right foundation to engage in agile software development starting with a flexible IT infrastructure.
To learn more about the challenges facing SaaS companies and how choosing the right infrastructure can help ease some of the pain, read our latest thought leadership white paper, “Enabling Agile SaaS Infrastructure.”