SaaS products were firstborn as point solutions and the most prominent startups in those times were UpShot and Sales Net. They were application-specific solutions which met specific needs of different businesses but were largely unappealing to the average customer. These providers had average products up their sleeves with limited resources and hence their ideas bombed. The market gradually gave way to new ideas to implement SaaS solutions and better products were offered which gave the original companies a tough competition to survive.
The performance of Sales force.com, the largest provider of SaaS services in recent times is open testimony of how SaaS has grown over the years. The company reported $13.8 million in revenue in the fourth quarter which is an astounding sum in itself. The total revenue stood at $289.6 million which was reportedly a 34% hike over the previous quarter. Sales force has reported strong earnings throughout the year too.
Recent reports by Forrester and other research agencies also pointed out that SaaS is projected to rise by more than 20% in the coming years. The SaaS market is now expected to grow faster in US and the whole western world since after recession, companies are wary to invest in infrastructure and hence prefer SaaS solutions and cloud platforms which can be scaled up and down. Most lean companies who have employee strength of less than fifty employees would never be keen to spend on licensed software and heavy infrastructure which would necessitate additional maintenance costs and high upgrade costs.
SaaS ERP and CRM solutions are both in demand since the SaaS applications along with platform as a service and infrastructure as a service solutions are projected to have the highest demand.
SaaS has been instrumental in helping companies to combat the ongoing recession. The companies opted for a SaaS implementation to keep a tight leash on the costs as well as the overall expenditure. SaaS applications have helped people to meet their IT requirements as well as save on additional costs. There are many companies who provide Custom SaaS Application Development services and are perfect with technicalities because of their vast experience with several domains. Most companies require SaaS integration for their existing applications so that they remain accessible in the cloud. Also, platform as a service solutions like AWS help companies to save on platform costs. The deployment is vastly simplified and the customer acquisition costs are greatly reduced. Most services offered by SaaS implementation include a "pay as you go" subscription licensing model which help companies to plan out their costs in advance.
Recently analysts mentioned that SaaS is the best medium to save on costs during the recession through Sales force and hence the company has managed to boost its revenue in spite of the odds. SaaS can surely make a mark in the IT industry under a difficult economy through accurate implementation and deployment. It is necessary to make the most of the investment here. Additionally, the existing IT infrastructure can be leveraged to the optimum level too.
Elan Technologies is a Leading Web Application Development company that provides SaaS Solution by experienced Subscription Developer with best technical support.
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