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]

Karen Franse, Communication
Strategy Group for Logicalis US
[email protected]

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
DevOps theory promotes a culture of continuous improvement built on collaboration, empowerment, systems thinking, and feedback loops. But how do you collaborate effectively across the traditional silos? How can you make decisions without system-wide visibility? How can you see the whole system when it is spread across teams and locations? How do you close feedback loops across teams and activities delivering complex multi-tier, cloud, container, serverless, and/or API-based services?
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Sheng Liang to Keynote at SYS-CON's 19th Cloud Expo, which will take place on November 1-3, 2016 at the Santa Clara Convention Center in Santa Clara, California.
Effectively SMBs and government programs must address compounded regulatory compliance requirements. The most recent are Controlled Unclassified Information and the EU’s GDPR have Board Level implications. Managing sensitive data protection will likely result in acquisition criteria, demonstration requests and new requirements. Developers, as part of the pre-planning process and the associated supply chain, could benefit from updating their code libraries and design by incorporating changes.
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
What are the new priorities for the connected business? First: businesses need to think differently about the types of connections they will need to make – these span well beyond the traditional app to app into more modern forms of integration including SaaS integrations, mobile integrations, APIs, device integration and Big Data integration. It’s important these are unified together vs. doing them all piecemeal. Second, these types of connections need to be simple to design, adapt and configure...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Penta Security is a leading vendor for data security solutions, including its encryption solution, D’Amo. By using FPE technology, D’Amo allows for the implementation of encryption technology to sensitive data fields without modification to schema in the database environment. With businesses having their data become increasingly more complicated in their mission-critical applications (such as ERP, CRM, HRM), continued ...
The IoT has the potential to create a renaissance of manufacturing in the US and elsewhere. In his session at 18th Cloud Expo, Florent Solt, CTO and chief architect of Netvibes, discussed how the expected exponential increase in the amount of data that will be processed, transported, stored, and accessed means there will be a huge demand for smart technologies to deliver it. Florent Solt is the CTO and chief architect of Netvibes. Prior to joining Netvibes in 2007, he co-founded Rift Technologi...
SYS-CON Events announced today that Streamlyzer will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
Most of us already know that adopting new cloud applications can boost a business’s productivity by enabling organizations to be more agile and ready to change course in our fast-moving and connected digital world. But the rapid adoption of cloud apps and services also brings with it profound security threats, including visibility and control challenges that aren’t present in traditional on-premises environments. At the same time, the cloud – because of its interconnected, flexible and adaptable...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...