Saasify or be a dinosaur

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Why Customers will only buy SaaS (software as a service) products? If you are an enteprise software customer, this article is for you. If you are a software vendor, if you haven’t SaaSified your on-prem software, your days are numbered.

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Photo by Karolina Grabowska on

Recently I was talking to a friend about why on-prem software vendors are not seeing the writing on the wall, which prompted me to write this article. There are many reasons why every enterprise customer is moving to SaaS products and platforms and you should too.

  • Reduced Time To Value
    • As a customer, you can start using the software and derive value much sooner than what you could do with traditional on-prem software. If your SaaS vendor is not onboarding you on time or you are not able to derive value soon, change your vendor.
  • Reduced Costs
    • Competition among SaaS companies is intense. There are double digit SaaS companies in most industries. Cost per value is constantly going down. SaaS companies are focused on you deriving most value sooner.
  • Ability to rapidly scale your customer base
    • With SaaS software, you can rapidly grow your customer base without worrying about security, availability and scalability of your software. This frees support teams to not worry about servers and infrastructure and focus on business functionality.
  • Software that fits your business
    • As SaaS companies are interested in growing your recurring revenue, they are less lisely to sell you software which is not suitable/valuable to your business or industry.
  • Constant Communication with Vendor
    • SaaS companies are in constant touch with you to make sure you are using their software and deriving value. Their primary goal is to retain you and for you to use more of their software features and products.
  • AI/ML capabilities
    • According to Oreily survey, 85% of organizations are using AI/ML. It is easier to automate your tasks by using AI/ML capabilities of SaaS products and vendors.
  • Software updates
    • You will always have the latest updates of your SaaS product.

For these and several other reasons, every customer is or will be a SaaS customer. If you are a software company and you haven’t figured out a way to rapidly SaaSify your on-prem software, your days are numbered.

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