In the 1960s, IBM established the concept of software as a service (SaaS). Since then, SaaS has come a long way, from supplanting the retail software model to enabling companies to access their data on the cloud. Today, as the mobile web has gone mainstream for businesses, procurement analysts at Technavio predict the global SaaS industry to grow at a CAGR of 8% by 2021. Suppliers are working to improve SaaS infrastructure to accommodate the requirements of SMEs and it is nteresting to see how this industry will evolve in 2017.
Trends in SaaS infrastructure to look forward to in 2017
Industry experts predict that SaaS infrastructure suppliers will focus on the following trends in the upcoming year:
- Use of private cloud
A number of SaaS services users are gradually building their private clouds. In 2016 alone, close to 50% of organizations in Europe and North America have used a hyper converged infrastructure (HCI) platform for building their private cloud to improve upon their SaaS infrastructure. Use of private cloud will also witness a rise due to the amount of security it provides over the public cloud.
- Public cloud
With the launch of Amazon Web Services (AWS), suppliers of SaaS have moved on to public clouds. While private clouds track enterprise data in a better manner, the public cloud enables better utilization of SaaS without increasing the overall cost for the organization. Apart from start-ups and small companies, category experts predict that 2017 will witness larger businesses like Boeing and Capital One taking the plunge into the public cloud sector.
- Data centralization and cost-effectiveness
With the volume of data increasing at a consistent pace, buyers are working towards centralizing their data system. A centralized data system improves data integrity, provides real-time transparency, and also improves the overall functioning of the organization. SaaS infrastructure enables a seamless flow of real-time data and information at the organizational level.
When it comes to cost-effectiveness, SaaS applications eliminate the need for hardware purchasing and hosting new applications, and provide APIs and customized software for buyers. Cross-device compatibility without any initial setup costs is yet another trend that is predicted to catch on in 2017.
- Transition to HCI
Procurement analysts predict that both public and private cloud have their own set of loopholes that cannot accommodate more sophisticated SaaS applications. HCI infrastructure, on the other hand, has advanced computation and storage services pre-integrated, which makes it easier to run the SaaS toolkit without any technical glitches. Many organizations, especially start-ups, see the HCI platform as a promising solution for them to make it ‘big’ in their respective markets. In fact, instead of investing in hardware and on-premises infrastructure, organizations are adopting the HCI platform to achieve higher scalability, manage failovers, and make their data more secure.
- Better infrastructure for on-premise devices
Contrary to popular belief, SaaS resources reside in some location, using a particular device. Being on-premise increases the chances of data leakage, which is why suppliers of SaaS offer both on-premise and cloud installations. In the next five years, it is expected that almost all of the players in the SaaS industry will not only improve upon the existing infrastructure for on-premise devices but will also allow buyers to opt for a combination of cloud and on-premise security.
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