Part 3 of a 6-part series “Accelerating Digital Transformation in the Cloud“
The benefits of Software as a Service (SaaS) are well-known. From the customer’s point of view, there are no up-front costs.
Customers pay for what they need, for as long as they need it. Their financial risk is greatly minimized. With SaaS, customers can access software from every device with an Internet connection at any time. This increases mobility and independence. Software updates are automated and deployed by the SaaS provider. Customers don’t need to download and install any application patches. SaaS applications are generally compatible across multiple devices. And applications delivered in the SaaS model can be adjusted to a customer’s needs through the availability of APIs that enable integration with existing systems.
From the vendor’s point of view, it is much easier to predict revenues basing on regular subscription fees. SaaS vendors do not sell a software license – they simply deliver use of the software to customers on a pay-for-use basis. In the SaaS model, the cloud becomes a platform for data that is accessible only to paying customers, so it reduces the risk of software pirating. In the SaaS business model, expansion to new markets is easier and doesn’t require the use of resellers or other distribution channels. The SaaS business model works 24/7, so vendors can gain new clients at every moment of the day. And there is a marketing network effect from customers and influencers alike.
There are many ready adopters of off-the-shelf SaaS applications. But these solutions are generally plain-vanilla, so a gap remains between “SaaS-simple” and “on-premise-customized.” Rapid application development can bridge that gap by offering a controllable, model-driven platform for rapidly extending SaaS applications with little coding.
At SAPPHIRE NOW, market influencer Tamara McCleary sat down with Mark Rogers, representing SAP partner and market leader Mendix, to discuss how new SaaS solutions are changing the business market for IT solutions.
Mark’s recommendation: “By looking at low code application development, you have a way of filling a gap – quickly extending and modifying, but doing it in a model-driven approach – without a big pile of legacy code. And you can have very specific customized experiences for employees, customers, partners that add unique value to the business, without losing the benefits of the core SaaS system.”
Watch the interview with Mendix
To see the third video of the 6-part discussion, click here.