Over the course of only five years, cloud-based technology has completely revolutionised the software industry. The number of strong start-ups has expanded, while many of the industry’s largest brands have either started or completed the shift to modern cloud-based software-as-a-service (SaaS) offerings. The rate of growth is the SaaS industry is projected to grow by almost 53% between 2019 and 2022.
SaaS changes the way ISVs produce value for their customers and it presents opportunities to evolve their monetisation potential. Of the ISVs who report changing pricing models, they also reported an improved ability to capture net new revenue from heavy users that previously represented value left on the table in a traditional licensing model.
Independent Software Vendors who have switched to SaaS have reported a range of efficiency gains depending on the complexity of the application and the ongoing maintenance responsibilities. The average improvement of engineering efficiency falls around a 26% improvement rate.
The cloud migration process usually includes four key phases. No two migrations are exactly alike, but organisations that prepare along these basic guidelines will be better equipped to build a flexible infrastructure that achieves its precise business objectives.
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