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Filipporeppi
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Advantages of the SaaS world

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The Software as a Service market is expanding consistently all over the world, and our country is now open to seize all the opportunities, with constant growth in investments from year to year. Microsoft provides its ISV partners with the latest data monitoring the SaaS market, with the aim of making them aware of the enormous business opportunities that can arise from addressing the development of applications in the cloud. Advantages offered by a rich market but also, concretely, by the support initiatives that Microsoft has designed specifically for ISVs.  

  

Whether you’re looking to build, migrate, or modernize an application, Microsoft can help get your idea in front of the largest customer base in the industry. 

  

SaaS represents an opportunity for independent software vendors (ISVs) to fundamentally transform their business to deliver greater value and sell software to a broader range of customers and streamline internal operations. 

  

The evolution of SaaS, driven by advancements in cloud technology, has fundamentally changed the software industry, and how it operates. The promises of SaaS, lower development and support costs, streamlined sales cycles, unified deployment environments, and new, datadriven insights into customer behavior, along with a growing customer demand for cloud-based software solutions are fueling the SaaS opportunity for ISVs. As software buyers give more consideration to total cost of ownership (TCO), ease of use, and flexibility in their purchasing decisions, the SaaS mode of delivery is quickly becoming the preferred alternative to traditional, on-premises software deployments across all industries and business process categories, providing an unmistakable opportunity for ISVs. 

  

Whether you are a cloud-native start-up or an existing ISV with legacy on-premises software solutions, SaaS represents an opportunity to deliver more value to your customers, while simultaneously increasing profitability and improving internal operations through reduced cost and complexity. This appeals to customers because SaaS solutions are engineered to be more purpose-built and are delivering better business outcomes than traditional software.  

  

Additionally, interest in SaaS goes beyond changes to how companies deliver and license their applications. Bessemer Venture Partners, a Silicon Valley-based venture fund, noted in its State of the Cloud study that legacy software vendors are embracing the SaaS model aggressively. Legacy vendors are not only modernizing their applications but are also spending aggressively to purchase SaaS ISVs to gain access to the technology and talent they need, spending over $50B annually to acquire SaaS companies. Valuations for SaaS ISVs reflect the SaaS opportunity; while public legacy vendors are valued at 3.5x annual revenue on average, public SaaS ISVs are valued at 4.9x and private SaaS vendors at 11.2x. 

 

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