SaaS is been utilized from last 3 years in Indian market and it has been studied extensively by all market players: developers, service providers, potential users all around the world. The possibility of savings on software used to model SaaS, is obvious, but where to start, what software is better to rent and which is to purchase and install in your office, how to choose the lessor of software and not to be mistaken with a choice..? These are the questions that a lot of people think about and these are some of the answers that we got from the expert.
The basic idea of SaaS – Software rental. First, the customer does not buy the expensive licenses, allocating one-time fee in the budget with the significant amount, but only pay a small rent (most often – every month) to get access to the required software. Secondly, the user is not engaged in the installation, configuration and software for its further service, all of these problems are solved by the provider, providing customers with access only via the Internet to the program.
Business model is based on the fact that small companies and even more so – to individuals – much easier to pay on a monthly basis than the one-time fee to allocate significant funds to purchase a license. The amount of payment is less, but their numbers – much more. Companies that sell software is quite expensive, running rental solutions that encompass the audience of small and medium-sized businesses, private parties, to which previously had no access.
If we talk about SaaS in India, it has certainly changed. Three years ago, few have had a clear understanding of what it is. There were very few proposals for services that are implemented on the model of SaaS, there was very serious question of credibility of its data providers fear among the technical limitations (trouble-free high-speed Internet access).
Gradually, all these issues are resolved. Increasingly interesting proposals appears from service providers, the Internet is becoming available everywhere (often – through several providers at once), changing attitudes to the idea of SaaS in general,: Customers no longer relate to the idea of renting software as an exotic, are beginning to try to use in business or those other SaaS-solutions (sometimes, though, not even knowing that their chosen service – it is SaaS; so can be, for
example, corporate mail, access to which a hosting provider provides).
Why take the business software for rent? What software should be taken on lease and is it more profitable to rent?
Considering the possibility of leasing one or another software, is a clear understanding of what problems rent can solve, what will be its advantages compared to buying a license.
The first – the most obvious problem – the desire to save money on software. There is no need to allocate significant funds in the budget, there is no cost for implementation and support.
The second possible problem – the need to use a particular software to support their business (this may be, for example, corporate email, CRM, intranet system) in the absence of technical experts in the company and the selected equipment.
If the company faces such problems, with the market there are suggestions to rent a software with an appropriate function, of course, you should pay attention to them.
What is crucial, the rental model assumes a very rapid start-up services. From the time of ordering the service from your cloud hosting provider before using, it may take just a few hours.
In this case, the financial risks is minimized. Typically, when ordering the service from your ISP user gets a full-featured product that works in a free trial (Editor’s note. – Demo) mode. Even before the receipt of payment you can get a running service.
This allows you to choose exactly the product and that service, which will be the most convenient and functional.
Thus, the rental scheme allows you to quickly and cheaply choose the solution for the problems of the customer – you can try in each of the options available at no cost (both financial and time).
In the case of the transition to SaaS-model data of client companies are at the server provider’s. And here comes into play is the issue of trust in service provider. Your recipe for how to choose a “proper” hosting provider. What should be in the area of responsibility?
The issue of trust provider is made up of different components. The first – a purely technical. Those soft and that the technical platform on which it is installed, which are used to organize SaaS-service should be mandatory to have all the technical means to ensure the safety and security of user data. Data encryption using SSL, the possibility of using disposable (composite) passwords, logging (Editor’s note. – Conducting special protocols work) all executed in the action of system software update, mandatory regular backups, etc. – All this must be (and will) be the standard for any rental decision.
The second aspect – the very credibility of the provider of the data.
Choose a cloud hosting provider with good reputation, focusing on its history, the number of clients, their feedback.
The provider must declare the safety and confidentiality of customer information in a contract with them and be responsible for it under the same contract. In fact, any serious provider like no one else is interested in ensuring maximum security of customer data. Any case of leakage or loss of information would compromise the whole of its business and cause substantial damage.
What are the rental model? How to determine the most profitable model for your company?
From the standpoint of providing services to clients can be divided into two models: the first – a developer of software itself becomes a service provider, providing your product in the lease. The second – the developer provides a ready platform for rental partners – hosting providers, and are already selling the service to end customers.
The second scheme seems more interesting. In this scheme, we obtain the highest quality service – each does what it can do well. The developer provides a broad functional partner hoster provides technical platform and provides its services (support, backups, etc.)
In addition, the partnership scheme from the same services will be offered by several different providers. And the client will always be able to choose the most attractive for its supplier.
One of the cornerstones of implementation issues of IT innovation – it is a question of information security technology. How it is solved in SaaS: backups (backups), data protection, encryption?
Of course, all the means which we have already talked about earlier will be used. And the backups, and encryption, and all other instruments that will ensure the safety and security of user data.
Most hosts are competing with each other, somehow reducing the cost of their services, making it, or explicitly, or through stocks and discounts. Indefinitely using this method will not work.
Our interest – in the development of SaaS-direction. We believe it is very important. Release of rent edition of Corporate Portal Program… Corporate Portal is
only the first step. We are planning to provide the rental model to our customers including other products.
Offering customers both models – and standard, and the rent – we will be expanding the audience, which can work. If we talk about intranet systems, today is our strategic goal – to run every second intranet resource for the “Corporate Portal Program“. This goal is entirely feasible, if the maximum attention is given to the segment of small and medium-sized businesses. It is these companies who will be the main consumers of SaaS-services in future.
Do you agree that India is a SaaS-mentality. What is it? What is the difference between the Indian approach to SaaS from the looks of the West, than the “thin” places, etc.
Rather do not agree. In India, the attitude toward SaaS is still emerging. Often there is confusion in concepts, in this case not only to potential customers, but also for developers, hosts and the media.
SaaS ideas so far for us, are not very clear, from the West we are lagging behind (as on demand and on proposals) for a few years.
And so our goal – to form a clear and understandable picture of the rental model, outline its benefits, to tell customers when it applies and when does not, create a market.