Augmenting the Value of SaaS in a Changing Business Eco-system
Despite all the current challenges concerning the acceptance and adoption of on-demand, Software-as-a-Service (SaaS) solutions, TCS firmly believes that SaaS has the potential to be an increasingly viable alternative to traditional, on-premise software applications. Rapid changes in business dynamics and competitive landscape have enabled the SaaS way of IT deployment with global prominence and acceptance. Global players are steadily warming up to the paradigm shift that SaaS has to offer in the way business applications are developed, delivered and consumed.
Moreover, SaaS’s market adoption is only bound to increase as the technology matures and the market broadens over time. Based on this perspective, TCS offers a strong value proposition through a range of SaaS offerings to customers, including advisory services that help customers identify opportunities SaaS implementation as part of their application portfolio towards achieving economies of scale. Customers the world over have realized that SaaS is a potent tool towards reducing operational costs and improving sales and delivery efficiency.
This paper outlines key business challenges and obstacles faced by SaaS Providers as well as Consumers and will examine how TCS can help overcome such challenges. It also emphasizes the different ways in which TCS can assist businesses/clients of all sizes in enhancing their SaaS capabilities to achieve lower TCO, quicker ROI, increased agility and an optimal subscription-pricing model. Considering the fact that a SaaS execution model poses significant business challenges for SaaS customers and partners, this paper also emphasizes key SaaS drivers/accelerators directed at addressing these challenges.
This whitepaper is intended for all business domains irrespective of application portfolios.
Introduction
In the face of an economic meltdown, ensuring capital savings, realizing faster time to market and reacting to changes in businesses (for example, the need for new offerings, threat from new competitors, and mergers) are the key challenges that most companies seek to address to sustain and remain competitive.
Fundamentally, Software-as-a-Service (SaaS) constitutes software delivered and consumed as a hosted service, accessed over the internet and managed by a SaaS solution partner. It offers an entirely new means of service delivery that can initiate and sustain a paradigm shift in the way business applications (“Services”) are developed, delivered, and consumed.
Adoption of SaaS is on the rise across businesses of all sizes with both small and mid-sized businesses and large enterprises embracing the SaaS model. It is also gaining traction in new enterprise areas such as compliance management, security management, service management, governance, in addition to core enterprise markets such as Human Capital Management (for example, performance management), CRM (for example CRM-on-Demand), HR, Collaboration, Enterprise Integration (for example, Integration-as-a-Service) and others. The organizational role and significance of SaaS is constantly changing — many businesses now depend on IT to integrate their various SaaS solutions with in-house applications.
The true winners in the SaaS market will be those Vendors who deliver cost-effective solutions, spanning a hybrid environment involving both on-premise and on-demand applications/services that can not only accelerate their time-to-market but minimize their total cost of ownership (TCO).
An interesting trend being observed currently is that established large enterprises have started to replace on-premise
applications with on-demand applications that are based on SaaS principles. CIOs with a vision for the future view SaaS as an enabler in the organization. Today, companies continue to increase their usage of SaaS across multiple applications, larger user bases and mission-critical applications.
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