WHY SAAS IS THE FUTURE IN THE SOFTWARE MARKET, IN ADDITION TO BIG REVENUE FROM DOWNSTREAM LICENSES

Machine Learning and IOT will be the quick win for the software. The power of computing technology is to collect data as quickly as possible, consolidate it and share it with decision makers: by trending, workflow, optimization, automation, ML, etc.

• SaaS for customers means like a “back to the past” or “back to the future” due to legacy infrastructure or lack of infrastructure.
• SaaS for software vendors means “less support revenue” or “new market and customers” due to high support costs today or new customers and fewer prerequisites.

“The more things change, the more they go back to where they started. Computing started as a central computer with many terminals connected. Next came distributed computing with a central mainframe and several mini computers connected. This was followed by personal computing and now for mobile computing. However; the mainframe never died, contrary to popular propaganda. It simply evolved and we now give modern names like cloud computing and SaaS. Both cloud computing and SaaS are here to stay, as customers today have more options and don’t want to pay for the functions and features they don’t need or the mega MIPS they don’t use. And that’s what makes SaaS products good business and will continue to be as security improves and international cybersecurity laws are enforced. formulated and implemented. SaaS products have low margins per customer for software developers, but they can engage a larger customer base nts due to ease of delivery and greater reach. They earn a little more from a larger customer base, resulting in higher net income.”

However, more trends and technologies should be added in this scenario, such as:

• IoT: has become a reality as a framework and protocols. They started to be a problem;
• PaaS: higher availability for developers, but very restricted environments supported;
• IaaS: commodity, SLA and price-based.

Where is the opportunity to improve SaaS adoption:

• Machine Learning: How to shorten the customer learning curve to best practices in the market or industry;
• IoT: Improved API (Application Program Interface) “bandwidth”;
• IaaS: Best SLA benchmarks and industry or industry standards.

Where is the trick/challenge to improve SaaS adoption:

• Machine Learning: Large amount of data processing and real-time efficiency;
• IoT: Lack of standards and different measurement technologies/platforms;
• IaaS: Interoperability and Flexibility.

Why major software vendors will seize the opportunity and reinvent the software business:

• Amount of capital: Also, niche players, capital means: more people, quick launches, flexible BC and RoI, and large installed base;
• IoT: Power (people and money) to drive standards;
• IaaS: Integrated offerings, from IaaS to PaaS to SaaS.

Why niche players and customers will challenge the game:

• One size doesn’t fit all: Due to the challenges of globalization and the global economy, “personalization” and “differentiation” are fundamental “must see”;
• IoT: Underdevelopment technology, space for all, plus “Capital Power”;
• Machine Learning: Security issues for sharing and using data, this is sometimes easy to deal with in small, user-focused communities;
• IaaS: Explode from “pay for less” players, plus interoperability or scalability issues;
• PaaS: Lack of standards or investment.

Cards are on the table, software vendors are reinventing their businesses and giving up recurring revenue to stay current with market challenges, more acquisitions are strategic like rapid absorption/deployment.

Cash availability, flow and installed base/SaaS conversion rate will define the leaders of next generation software companies.