The Future of SaaS - Impact on MSP Industry
The market for managed IT services is expanding rapidly. The modern economy depends on carefully designed IT infrastructure to ensure things run smoothly. According to Research Dive, the market will grow from $174 billion in 2019 to $411 billion in 2027.
According to industry analysts, a young crop of managed service providers (MSPs) is rapidly emerging. Globally, there are more than 150,000 MSP businesses, according to MSP Alliance. While it did decrease in 2009, this number has since increased in consecutive years.
How Is the Future Unravelling for SaaS and MSP Industry?
These days, subscription-based services are available everywhere. Nothing is different in the IT sector. MSPs have recently embraced the subscription-based Software as a Service (SaaS) purchase model. SaaS has advantages and cons, just like anything else.
In more detail, let's examine some of the benefits and drawbacks of using a service model for Software licensing.
Pros of using SaaS
Mobility
Workplace mobility is a key component of the freedom that today's workers seek. SaaS-based programs are used anywhere there is a network connection because there is no disc to install. It makes the mobile office more conceivable.
Cost
MSP businesses that use the SaaS model might also provide different pricing tiers, allowing them to pay less in return for access to fewer application capabilities. Smaller firms now have access to Software they might not otherwise have been able to afford, thanks to the reduced buying threshold this has generated.
Maintenance
The fact that patches and updates are available automatically is arguably SaaS's finest perk. As new versions are released, the publisher will automatically update your licenses if you use a subscription-based approach. Your staff won't be utilizing out-of-date equipment, and the company won't have to spend money on a whole new program.
Cons of using SaaS
Security
When publishers choose the SaaS model for their applications, they are not liable for maintaining data security. Instead, the company has to ensure that the necessary security measures and regulations are in place.
Contractual Liability
For MSP companies using SaaS services, compliance is a major concern. SaaS contracts can be challenging to comprehend, and the consequences of abusing licenses are frequently severe.
Why MSPs Should Use SaaS?
MSPs can improve their services thanks to the benefits(backup and recovery, auto-update, ease of integration, low cost, mobility, maintenance, accessibility, etc.) of the SaaS model without having to invest in expensive infrastructure or incur high operating costs.
This guarantees that MSPs may develop new, value-added service offerings, business prospects, and revenue streams and train their staff in the specialized fields where their services are expanded. As a result, MSPs are better able to respond to changing business conditions and client needs.
Final Words!
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