Welcome!

News Feed Item

Logicalis US to Software Providers: Embracing the Cloud Can Increase Your Bottom Line

Solution Provider Offers Seven Reasons SaaS Makes Good Business Sense

NEW YORK, Sept. 2, 2014 /PRNewswire/ -- By 2015, experts predict half of all software providers will deliver their applications as Software-as-a-Service (SaaS).  In fact, SaaS is expected to represent three-fourths of all spending on public cloud services in 2015, making the idea of SaaS delivery models top of mind for software providers.  Those not yet embracing a SaaS delivery model may already be feeling significant competitive pressure knowing that customers want choices in the way they consume their software. For software providers wondering whether a SaaS model is right for them, Logicalis US, an international IT solutions and managed services provider (www.us.logicalis.com), has outlined seven of the most important reasons that adopting a SaaS delivery strategy makes good business and financial sense for software providers.

Business and Technology Working as One.

"Software providers are positioned along a continuum somewhere between traditional software on the far left, where the software provider develops the application and supports it for customers who deploy, manage and consume it any way they like, and at the far right, those who embrace SaaS in a way that transforms them from a provider of a product to a service provider similar to Salesforce.com, for example," says Ryan McNees, Solution Provider Practice Leader, Logicalis US. 

Seven Reasons SaaS Makes Good Business Sense 
Most software providers find themselves somewhere in the middle of the spectrum today, but as they naturally move toward the right they will need to leverage and embrace the cloud and a SaaS strategy to get to a true SaaS business model. Here are seven reasons this makes sense for software providers according to Logicalis US experts:

  1. Shortened Implementation Times: By standardizing the implementation of a software solution, SaaS reduces the solution's implementation time.  When implementing a software program on-premise, the technical environment varies with each customer, causing the software provider to inherit and resolve the unique implementation problems of each customer.  With a cloud deployment, the environment is standardized; implementation is the same time after time.  Automation and orchestration technologies can also be leveraged to further streamline implementations, driving down time to consumption, and increasing customer satisfaction. By shortening implementation times, products can also be brought to market faster and more cost-effectively than they can with more traditional go-to-market strategies.
  2. Marketing to New Customers: In a traditional software delivery model, the customer buys the hardware, implements it on premise, then deploys the software.  Someone has to be responsible for that environment which adds cost and complexity that many customers would prefer to avoid.  Consuming software as a service is simpler and offers a different financial model; instead of a large capital expenditure to buy dedicated hardware, the consumer can package its purchase as a monthly fee that fits into its operational budget.  Therefore, as software providers adopt a SaaS delivery model, they're able to reach a wider base of customers, particularly those who want to trade IT CAPEX for OPEX.
  3. Capturing New Revenue Streams: In more traditional software delivery models, providers sell software and maintenance as a package, charging a large one-time payment.  With a SaaS model, the larger single payment may be divided into a monthly annuity stream that continues at a steady, ongoing rate.  By also including infrastructure services in the initial sale, software providers are able to make money on a larger piece of the overall IT landscape.  The customer has to run the software they purchase on something; why not sell them cloud access on a recurring monthly basis and earn that additional revenue long term?
  4. Reducing Risk: Risk mitigation is one of the most important factors in a business' success. By selecting an experienced cloud partner with a proven track record in SaaS delivery rather than trying to build a hosting infrastructure in house, the software provider can avoid a lengthy, multi-year learning curve where mistakes in hosting the software will inevitably be made.  Finding and partnering with the right cloud provider can mean avoiding these costly mistakes and greatly lessening risk for the business as a whole while still allowing the provider to capitalize on the annuity stream and market to customers who don't want to buy on-premise hardware themselves.
  5. Being Flexible: Offer Hosted, Managed Appliance and SaaS Solutions: Customers want options, but providing all the options customers want is a costly endeavor.  Trying to do this all alone will inevitably lead software providers to push customers toward the model they are best able to provide, a strategy which may not be in the client's best interest and could result in loss of business.  Instead, create a go-to-market plan that includes hosted, managed appliance and SaaS strategies, then rely on experienced partners to seamlessly provide the pieces you aren't able to cost-effectively deliver to your clients.
  6. Partnering for ITSM, Change Management and Monitoring: A lot of Infrastructure as a Service (IaaS) companies provide just the cloud infrastructure and nothing more.  But delivering a true solution means more than just building the environment the software runs on; it also means managing and scaling that environment, supporting the customers and managing their SLAs.  It takes a long time to build a successful service organization, so in many cases, savvy software providers outsource key managed services they want to provide to their customers – from the infrastructure itself to backup and disaster recovery, automation and orchestration, and even managing a help desk for the software provider itself.  An experienced customer service partner, for example, will determine what the issue is when a service ticket comes in – i.e., whether it's the operating system, a database backup/restore issue, or an outage that needs to fail over.  If it's software-related, they'll send the customer back to the software provider.  Anything else, they'll solve it on the spot on the provider's behalf.
  7. Selling Security – SSAE-16, HIPAA, PCI: Customers want assurances that the solution they deploy is secure.  Choosing SaaS deployment partners who can help meet the end customers' security and compliance requirements by providing a secure, audited environment and signing Business Associate Agreements (BAAs) for HIPAA, for example, will be a definite door opener with customers concerned about regulatory requirements.

Want to Learn More?

  • Ready to transform your business? Visit Logicalis' software provider microsite here: http://ow.ly/AIk0f.
  • Read about the Logicalis Software Provider Program and find out more about gaining a competitive advantage with a secure enterprise cloud, SaaS or managed on-site appliance program: http://ow.ly/AIjmE.
  • Explore the seven critical criteria for selecting an infrastructure as a service (IaaS) partner, then read a case study about API Healthcare and how Logicalis helped it launch its Workforce Management SaaS offerings: http://ow.ly/AIkqy.

About Logicalis

Logicalis is an international IT solutions and managed services provider with a breadth of knowledge and expertise in communications and collaboration, data center and cloud services, and managed services.

Logicalis employs nearly 3,700 people worldwide, including highly trained service specialists who design, specify, deploy and manage complex ICT infrastructures to meet the needs of almost 6,000 corporate and public sector customers.  To achieve this, Logicalis maintains strong partnerships with technology leaders such as Cisco, HP, IBM, CA Technologies, EMC, NetApp, Microsoft, VMware and ServiceNow.

The Logicalis Group has annualized revenues of $1.6 billion, from operations in Europe, North America, Latin America and Asia Pacific, and is fast establishing itself as one of the leading IT and Communications solution integrators specializing in the areas of advanced technologies and services.

The Logicalis Group is a division of Datatec Limited, listed on the Johannesburg and London AIM Stock Exchanges, with revenues of over $5 billion.

For more information, visit www.us.logicalis.com.

Business and technology working as one
To learn more about Logicalis activities through a variety of social media outlets, click here.

Media contacts:
Lisa Dreher, VP, Marketing &
Business Development,
Logicalis US
[email protected]
425-201-8111
www.us.logicalis.com

Karen Franse, Communication
Strategy Group for Logicalis US
[email protected]
866-997-2424
www.gocsg.com  

Logo - http://photos.prnewswire.com/prnh/20130828/MM71035LOGO-a

SOURCE Logicalis US

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Transformation Abstract Encryption and privacy in the cloud is a daunting yet essential task for both security practitioners and application developers, especially as applications continue moving to the cloud at an exponential rate. What are some best practices and processes for enterprises to follow that balance both security and ease of use requirements? What technologies are available to empower enterprises with code, data and key protection from cloud providers, system administrators, inside...
"Calligo is a cloud service provider with data privacy at the heart of what we do. We are a typical Infrastructure as a Service cloud provider but it's been designed around data privacy," explained Julian Box, CEO and co-founder of Calligo, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use of real time applications accelerate, legacy networks are no longer able to architecturally support cloud adoption and deliver the performance and security required by highly distributed enterprises. These outdated solutions have become more costly and complicated to implement, install, manage, and maintain.SD-WAN offers unlimited capabilities for accessing the benefits of the cloud and Internet. ...
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true ...
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
DXWorldEXPO LLC announced today that "IoT Now" was named media sponsor of CloudEXPO | DXWorldEXPO 2018 New York, which will take place on November 11-13, 2018 in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
In this presentation, you will learn first hand what works and what doesn't while architecting and deploying OpenStack. Some of the topics will include:- best practices for creating repeatable deployments of OpenStack- multi-site considerations- how to customize OpenStack to integrate with your existing systems and security best practices.
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and G...
"DevOps is set to be one of the most profound disruptions to hit IT in decades," said Andi Mann. "It is a natural extension of cloud computing, and I have seen both firsthand and in independent research the fantastic results DevOps delivers. So I am excited to help the great team at @DevOpsSUMMIT and CloudEXPO tell the world how they can leverage this emerging disruptive trend."
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...