How cloud computing is a great option for SaaS start-ups?

Even if you do not belong to technology group, you have most likely heard about cloud computing . Similarly to virtualization, cloud computing has already become popular, and now businesses and even individuals can take benefit of it.

Oftentimes, small companies think they are outwitting the situation when they find ways to “make do” and “work around” old technology. They use the one person in the office who doesn’t mind being the on-site computer person, although they were never really trained. Even sometimes a well trained IT team keeps resolving user’s issues and still feels, number of tasks are unaddressed or problematic. In today’s fast paced world, businesses could not take chance to depend on old hardware and out-dated software, especially when running an e-commerce website or SaaS product. Due to its unique benefits, cloud computing is a feasible option for SMBs businesses and SAAS start-ups – something seriously worth investigating. There are some obvious and not so obvious advantages to using a cloud, such as:

  • removal of software purchases, as you can include it in your cloud package
  • no need to purchase and maintain an on-premise server (for most business-types)
  • it’s no longer necessary to buy computers with heavy-duty storage
  • it’s easier for multiple users to work on and share projects using services like Hosted SharePoint 2010
  • it’s attainable to create custom-tailored cloud packages without being locked in, for example Hosted Exchange 2010 or Hosted Exchange 2013 where you pay as you go 

Software-as-a-Service (SaaS) is the most popular kind of cloud computing, particularly for small businesses. That is why SaaS is often used as a synonym of cloud computing, though this isn’t precise because in addition to SaaS, cloud computing includes IaaS ( eg. VPS Hosting), PaaS  (renting OS, network capacity, storage and hardware) and many other things. Since the major interaction of smallest businesses with cloud computing is SaaS, terms are often used alternatively. Good example of SaaS cloud computing is Hosted Exchange email like Hosted Exchange 2010. This types of cloud computing delivers a single application through the browser to thousands of customers using a multi-tenant architecture. On the client facet, it means no direct investment in servers or software licensing; on the provider facet, with just one app to maintain, costs are low compared to conventional hosting. The simplest to comprehend as most of us already use Software as a Service when we use outside mail servers, such as AOL, Google, Yahoo and a lot more.

Now let’s talk about SaaS startups. As we discussed already Software as a service (or SaaS) is a means of delivering applications over the Internet as a service. Rather than installing and maintaining software, you simply access it through the Internet, liberating yourself from complex software and hardware management. SaaS applications are sometimes called Web-based software, on-demand software, web applications or hosted software. Regardless of the name, SaaS applications run on a SaaS provider’s servers. The provider manages access to the application, including security, availability, and performance. SaaS customers have no hardware or software to purchase, install, maintain, or update. Access to applications is easy: you simply need an Internet connection. So, why SaaS startups should choose cloud computing in place of developing and utilizing their own capacity?

As you would have expected, the profits aren’t solely financial, but for SaaS startups these benefits can mean a lot. First of all, you get efficient use of resources and flexibility to develop a team which is core to your SaaS product. No need of hiring and maintain resources for regular infrastructure tasks. This would help your team to focus on the product and features and rest all would be taken care automatically. Technology startups are really brutal and market is highly competitive. You need to be fastest. Ensuring that you are top of your competition is the only way to grab your market. So, cloud computing could help you in making your process faster.

For technology SaaS startups, scaling is a crucial part of business. You could need to scale immediately or unexpectedly, so better to be prepared for it. Cloud platform is completely scalable as per your needs and hence you don’t need to fall in the crazy traps of unused hardware or securing any additional capacity in advance. Start simple, be free to create, test, deploy and market applications without any infrastructure worries and grow huge.

So financial as well as better and efficient resource utilization are some of the great benefits for SaaS startups with cloud computing. Stay tuned for the next part..



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