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Why is it beneficial to convert your on-premises software to SaaS?

April 26, 2023
Why is it beneficial to convert your on-premises software to SaaS?

There isn't a single answer to this question. The benefits a SaaS system offers companies are numerous and vary by their nature. However, broadly speaking, the advantages can be of two types: commercial and operational.

From a commercial standpoint, converting your on-premises software to SaaS allows you to: 

  • Transitioning from a license model to a recurring revenue model (e.g., a monthly service) and competing against others who already do. 
  • Abandon dependence on physical facilities and overcome geographic limitations. 
  • Facilitate the sales process with easy-to-deploy demos.
  • Lower the barrier to purchase by adopting a Try and Buy model. 

 On the other hand, at the operational and technical level, adopting a SaaS model helps you to: 

  • Centralize operations and maintenance. This increases productivity and allows access to a single database for all clients. 
  • Update the product with greater ease. A SaaS model eliminates the dependency on a third party to run updates. This way, a single deployment can be executed with updated versions that add new functionalities and increase security. 
  • Have a better overview and control of your clients' environment.  
  • Improve scalability 
  • Make your product available to users in a short time. 
  • Have higher security levels. 

 Thanks to all these advantages, SaaS has become the default software delivery model. In fact, according to a study by BetterCloud, By 2025, 85% of business applications will be based on this technology. Given this scenario, companies that fail to make the transition to SaaS will fall behind and miss out on a trend that has revolutionized the market and is here to stay.  

A preference model 

 SaaS has experienced sustained growth for almost a decade and the repercussions of this evolution have been powerful: the conversion of traditional software to cloud-based SaaS has become one of the main priorities for many companies in the sector. So much so that, according to the technology group Harvey Nash, SaaS software is considered the most important and influential enterprise technology today. 

One fact that makes something very clear is that the incredible migration of local licenses to cloud software is not a temporary change dictated by the pandemic, but rather, on the contrary, has become a fundamental requirement to remain competitive in the market going forward. 

 Challenges of the SaaS model 

 Migrating on-premises software to SaaS presents several challenges. The most relevant? The degree of responsibility demanded by the model. This is because, after migration, software provider companies become responsible for the security, availability, and performance of their cloud service. In other words, any vulnerability affecting the client falls on the provider company. Therefore, there is no room for error, and the level of precision required for service delivery increases.  

On the other hand, at a commercial level, it is necessary to consider how SaaS costs will be incorporated into the product's commercial scheme. Especially those associated with the software company hosting the product. Finally, it is essential to understand some technical principles of these platforms to provide excellent, stable service that is valued by customers. 

SaaS: A Big Opportunity

 Software vendors that have not yet converted their on-premises software to cloud-based SaaS will have to do so now or in the future. If they do not, they are very likely to lose market prominence. In a remote world, the era of on-premises software is nearing its end. Statistics and trends reflect this.   

What's curious? Not too long ago, the end of on-premise software seemed very far off. However, the pandemic and technological development accelerated the process and created a dynamic reality that forces us to stay updated and, above all, pushes us to innovate. Or, what's similar, to look for more efficient solutions to offer our products in a scalable, highly available, and cost-effective way. 

At Nublit, we are well aware of all these challenges. That’s why we work closely with your teams to ensure that the implementation of the SaaS model in your organization is a complete success and goes off without a hitch. With our service Cloud for SaaS, we provide you with the necessary support so that your only concern is to develop your product without limits and scale without problems. 

Provide your clients with superior solutions. Nublit ensures they are always available and functional. Want to know more? Get in touch with us.

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