How Profitable is SaaS?

SaaS means more than just providing software via the Internet. It is better thought of as an innovation which is disruptive. Many business owners are realizing that their entire business models will need to be altered over the next decade in order to deal with the new changes that are occurring as a result of this technology.

In the past, software was more or less static. But today, an application which is standalone and unable to network is not very useful for modern businesses, and the reason for this is because of the speed at which things move. In the past, most businesses were capable of handling individual stores of data, but today everything must be networked over the web.

Companies that have chosen to use SaaS have experienced great success in terms of savings. There are a number of reasons for this. First off, there is no longer a need to have software shipped out, since it can be delivered digitally. In addition to this, it is much harder for people to be capable of distributing software illegally. When you combine this with the networking capabilities of the SaaS model, it is easy to see why many businesses are taking a second look at this technology.

The one thing that all businesses have in common, regardless of their size, is that they need to focus on their core product or service, and everything else must be obtained in the form of a service. Even though Oracle has not pioneered this market, it will have little effect in terms of the profit generated in this industry.

Many software consultants have a strong dislike for SaaS. The reason for this is because consultants hate simple solutions that customers can use without their assistance; in other words, most software consultants feel that SaaS software can make them obsolete. Another reason why many consultants dislike SaaS is because it does not allow them to charge fees for either upgrades or customization.

For instance, it is very rare, if not impossible, for organizations to use Oracle completely out of the box. Software consultants like the complexity of traditional software because it keeps their customers hooked, and this means long term big bucks for them. The power of SaaS lies in the fact that profits can come from a variety of different industries.

SaaS shows Great Promise in the Gaming Industry

In 1995, the gaming industry earned a grand total of $3.2 billion. By 2006, the gaming industry was making an estimated $7.4 billion, which means the industry profits doubled. All the evidence shows that SaaS is one of the most powerful tools the gaming industry can take advantage of.

One reason for this is because companies can avoid the piracy problems that are so prevalent with standalone titles. For example, in the past, when a computer company released a game on CD-ROM or DVD, it was only a matter of time before a hacker cracked the CD protection and then distributed the game over the web. With SaaS, since the game is delivered on-demand, piracy is much more difficult.

Statistics have shown that SaaS is growing at an exponential rate, and it is said that SaaS revenues will reach a grand total of $21 billion by 2011. The reason why there is such a powerful movement towards the on-demand model is simply because SaaS does not require a great deal of IT implementation.

In addition to this, there is not a heavy need for maintenance, and this means that there is not a great deal of disruption for businesses. SaaS is awesome in scope because it allows for upgrades in real time, and this means companies do not have to worry about the down-time issues that they faced in the past. Many companies working in the SaaS sector have continued to experience record profits over the last 24 months, and these profits are expected to continue.

Voice as a Service

One good example of the promise of SaaS is Voice as a Service. This is a new type of phone business model, and it simplifies the manner in which someone can set up a new phone line in their home or office. It is impossible for the phone line to become functional if there is no network help or connectivity. Voice Over IP is another tool that is changing the way people communicate with each other.

Editorial Team at Geekinterview is a team of HR and Career Advice members led by Chandra Vennapoosa.

Editorial Team – who has written posts on Online Learning.

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