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SaaS for Software Development: An Enticing Option for Cost-Effective IT Solutions

As technological transformations inundate the IT realm, the demand for cost-effective SaaS solutions is expected to fuel the growth of companies by almost 19.6% as per the report furnished by Vanson Bourne, a company engaged in providing real-time IT insights for its implementation and integration.

Top businesses, especially software development companies are growing at a faster pace by relying on the model of on-demand rather than on-premise software solutions.

Nonetheless, there have been larger strata of verticals in the tech domain that are yet to explore the unprecedented possibilities that SaaS-based or ASP platforms can bring and this blog will be discussing the benefits that one will get when they move from on-premise to on-demand cloud-based software development solutions.

How do SaaS-based Software Development Solutions Help Software Development Company?

On average, enterprises across the globe are using more than 16 to 20 S-a-a-S-based apps for running their day-to-day business activities. The increased reliance of enterprises to move from on-premise to on-demand demand for software development is because of the following reasons;

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Minimal Capital Investment

Small startups have minimal fund access; until and unless they are well funded by VCs and Angel Investors, they have to rely on boot-strapping. For a build software development company, the core challenge is to minimize the cost, and an on-demand or pay-as-you-go software solution prevents big investments by avoiding the need to set up the servers and other IT infrastructure. As a result of this advantage, startups, mid-sized enterprises, and even SMEs have been using the S-a-a-S solution for controlling capital investment

As per the latest acceptance trends of SaaS, by 2020 the average annual investments in cloud-based solutions by software development companies will be up by 60% of cloud spending. And, almost 73% of the organizations have admitted that they will be using all their apps that will be powered by SaaS. Thus, this market is going to grow as time passes.

Low Maintenance

In small enterprises, the expenditure can pose a significant challenge to fund all necessary requirements; as a result, holding on to low investment options can bring considerable benefit to the organization. Having cloud-based setup rules away from the need for maintenance.

When the companies involved in development do not have to think about licensing, deployment, operational efficiency of IT, hardware, and other scrap jobs, they can focus on their core operations of development.

In the SaaS support system, the subscription-based revenue model keeps the business on the front foot as with changes in the business dynamics like growth and expansion, the enterprises can adjust with the subscription-based system. The outcome is the best result for controlling the costs.

Better Space Management

The net management space for each office vertical in New York costs twice that much as that based in Chicago. As per the Square Foot report, the average monthly rent per square foot in Atlanta for office space is close to 2$.

So, for a software development company, if they take somewhere around 500 square feet of space for the servers, it will cost them around US$1000. Just for deploying maybe one server room. If they want to expand that to maybe more space, it will push up the bill and eat upon the profits.

Now, when off-premise or on-demand solutions come into the picture like SaaS, it will completely take away the challenges like maintaining the wiring, electricity, ventilation, and other necessary details.

All these might cost heavily and with S-a-a-S as a solution, one is sure of not suffering from these challenges. As a result, it ends up being a more amicable and cost-friendly solution for new startups and SMEs.

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System Upgrades and Customizations

As per the IHS Findings, in North America, IT downtime can push away any enterprise from the competition and put them in the Stone Age, categorically. Yes, it almost costs US$700 billion a year.

In small enterprises, it almost costs a million $ for one year. That’s quite a fortune; but by relying on the on-the-demand software-support system, many enterprises considerably save themselves from the challenges of maintaining and managing the technology that they use on a regular basis.

The upgrades and downgrades are scalable with off-premise “Software-as-a-Service solutions.” As it can always be adjusted as per the requirement of the organization, making it an amicable pick for the services and development that are engaged into. At times, when enterprises are using a premise software system, they need to run numerous checks and finally plan out to roll the updates across all systems. But having a cloud-based solution can easily do away with this requirement. As a result, start-ups, SMEs, and even some big MNCs have moved to the cloud for the support that they need.


The pressing need for smart and scalable support will always push the cost of software development in the future. As AI, ML, and Blockchain Technology are getting vibrant and cost-effective; they will go mainstream across all verticals. Cloud-based solutions have paved the way for enterprises to shift their focus to the core rather than having to think about maintenance and up-gradation.

Software development companies have significantly benefitted and the trend will continue to roll more as time passes. With a greater inclination of the age toward technology, the SaaS business model can definitely see a brighter future ahead for the software development company.