Recently I was talking with a friend about entrepreneurship and technology. The topic of Software-as-a-Service (SaaS) came up and how it’s been a hot area for years now. After discussing it further, we agreed that SaaS is just getting started and shows no signs of slowing down.
Here are some of the reasons SaaS is so disruptive:
- Pace of innovation is much faster for a tech company compared to installed software due to delivering software over the web
- Ease of on-boarding a new client and getting value is a magnitude better than the previous way
- Removal or lack of IT involvement empowers line-of-business managers to be more autonomous and self-sufficient
- Anytime, anywhere access changes the approach to work and frees up team members to be productive on their own schedule
- Open APIs to share data and connect systems in an automated fashion is 10x more efficient than traditional enterprise software
Software-as-a-Service has another decade of rapid adoption ahead and is just getting started.
What else? What are some other reasons SaaS momentum is so strong?
David Cummings on Startups 
SaaS truly lowers a customers TCO and gives them flexibility to leave a solution. Customers have much less flexibility to leave a solution after they spend big dollars to purchase the software and pay for the implementation fees up front.
SaaS gives the business a predictable recurring revenue stream (which is fantastic) and provides customers with more flexibility while lowering their costs.
Pricing. When you are looking at traditional, large up front license fees and trailing maintenance fees, you have to go through the exercise of finding capital to adopt a new solution. SaaS models allow your company to get into a new solution by only utilizing operating budget and predicting the value of the solution based on usage over time. Large license fees make you prove the value before you even use it!