Is SaaS good for a vendor?

Ron Arden Secure collaboration

SaaS vendor With all the talk about Software as a Service (SaaS) being great for customers, I wondered if it’s a good deal for a vendor.  Creating a service can be capitally intensive and you may not get a payback until years later.  Some of the benefits for a customer are no upfront hardware and software investment, faster deployment, lower operating and maintenance costs and easy access through a browser.

One key that excites any customer is the pay-as-you-go model.  This makes it easy to add and remove users and capacity as needed.  Rather than worrying about how many software licenses to buy and if some of those wind up as shelf ware, a customer only has to worry about how many users they need today.  If they need more, they add them.  If they need fewer, they cancel them.

These are all compelling reasons for any customer to use SaaS.  So what are some of the benefits to the vendor?

  1. Access more customers (global)
  2. Lower operating cost per customer
  3. Simplify upgrades and maintenance
  4. Easy to add features to meet customer needs
  5. Acquire more customers with self-service

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