The World is moving towards an advanced technological surrounding that involves loads of data and Internet of Things (IoT) is becoming more popular among everyone. Cloud Computing is becoming more popular to cater the needs of the increasing data storage demands. It offers a broad range of services that help businesses to benefit from. Many companies started adopting to Cloud as it opens up many opportunities. Before getting into the specific discussion, it is better to know clear about Cloud and its related components.
What is Cloud Computing?
In general terms, Cloud Computing is a centralized system over the internet used for delivery of hosted services. It helps the companies utilize resources like virtual machines, storage units, applications or more as a utility rather than that of a building and maintaining the whole computing infrastructure. Cloud Computing offers many attractive benefits for companies of all levels and here are some of the three primary advantages of it:
- Cloud Computing is elastic i.e. it can be accessed whenever needed as it is sure to reduce a huge infrastructure cost.
- Cloud Computing is provisioned to self-service.
- Cloud Computing offers pay-per0use- model for optimal cost reduction.
Cloud Computing is categorized into three major services, namely:
- Infrastructure as a Service (IaaS) is a self-service model used for accessing, monitoring and maintaining remote infrastructures. (Ex.: Amazon Web Server)
- Platform as a Service (PaaS) is used for applications and other development to provide cloud components to the software. (Ex.: Salesforce, Apprenda)
- Software as a Service (SaaS) uses the web to deliver applications managed by third-party applications and said to represent the largest cloud market. (Ex.: Office 365)
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Why is SaaS said to represent the largest cloud market?
SaaS is defined as the software deployed over the internet. Using SaaS, a provider supplies applications over the web to customers either on the subscription model or as services on demand or as pay-as-you-go mode or sometimes even as a free services when there is a chance that the provider could generate revenue through advertisements or user list sales. Recent reports indicated that SaaS model is rapidly growing and it is sure to become the future of web applications. Since it is becoming more important, the providers and buyers are in a state to know in detail about SaaS and where it is suitable.
It is important to understand the SaaS complies with the accepted definitions of the Cloud Computing. Some of the important and most defining characteristics of SaaS are:
- Software or the application will be managed from a central location
- Access through the web to all commercial software
- Software or application is delivered in one-to-many model
- APIs helps in integration between the pieces of the software
- Software upgrades and patches are maintained by the providers and not by the users.
SaaS is the best method to deliver technologies and as said, is rapidly growing. Most of the hosted web services are listed under the SaaS model as they are promising to leverage many aspects of business. But, before opting to SaaS model, business should consider which applications or software to move to the cloud, Here are some of our observation that we believe as the primary candidate to make progress to the SaaS architecture:
- Applications like email newsletter campaign software will be our first choice when we think of moving to the web application architecture. It is because this type of applications involves an interplay between the company and the outer world.
- Applications that require both web and mobile access. One such application is mobile sales management software.
- Application that will be used only for a short period. For examples, the collaborative software will be used only till the project development is in the process.
- Applications like email clients where the applications will be used significantly by most users as it is the fundamental of every business.
Web services like email, financial management, expense management, customer service, etc. are some SaaS applications modules for deploying better business over the cloud. It is believed that the SaaS was introduced to the business world by Salesforce with their favorite product, Customer Relationship Management (CRM).
Why business prefer SaaS to be the future?
SaaS model is not new to the firm. Web-based applications provided by the application service providers (ASPs) is similar to what we call as the Cloud Computing in modern times. Some of the primary reasons for the business to choose SaaS model web applications are listed below:
- Faster and easier adoption
Developing and deploying a business application is never an easy task. It involves loads of process, and the infrastructure cost is high. The time taken to develop, install, migrate, test and deploy an application is massive, and sometimes there arise many complications, and even the project gets few backlogs because of this. SaaS model web applications can be quickly deployed where the services provider takes care of everything from the start. The beauty of SaaS-based web application is that the team can directly use these powerful and fully-functional applications. SaaS applications help businesses innovate faster and flexible.
- Flexibility for both the users and the businesses
Most of the businesses in this modern world get the competitive edge because they are more flexible and can handle the changes happening then and there. Most of the SaaS based web applications in the market are flexible because they help every new user up and running, add components that weren’t the part of the initial deployment and lot more. These web applications not only scale in the user point of view but also in the technical sense of the business.
- Application cost is reduced
The cost benefits not only the business owners but also the individual business units including the IT team. Using SaaS web applications for business will help organizations pay for what they use without having to host a new application. The time for deploying the traditional models has been reduced from months to week or days with the help of the SaaS model business applications.
- Higher adoption rate
A recent survey by Salesforce states that SaaS apps tend to have lower learning curves for companies and higher adoption rates. This is significant because the implementation on-premises software costs higher than that of the low-cost SaaS applications. The Higher adoption rate is because no one wants to invest more when they have an application that is low in cost and rich in features compared with traditional applications.
- Work anywhere
The most important feature of SaaS applications is that it offers flexibility to work from anywhere since the application is hosted in the cloud. These applications are accessible through the Internet, and the user can access it even with their mobile device with active internet connection. The nature of sale is increased when the users can access the data from anywhere.
The SaaS-based web application market continues to grow quickly, and by 2020, most business will use CRM and ERP applications hosted in the cloud.