At the heart of SaaS is the world of cloud computing. Without a cloud tech stack, SaaS models cannot thrive. So having a base knowledge of how cloud based licensing services function brings better direction to your SaaS company.
In this article:
- What is cloud computing?
- What are the benefits of cloud computing in business?
- Hybrid clouds vs multi-clouds vs AI
- What are cloud based licensing services?
- Difference between IaaS, PaaS, and SaaS
- 3 best cloud computing programs for SaaS
What Is Cloud Computing?
To understand what cloud computing is you need to know about the cloud. The cloud is a network of servers operating on the internet. Cloud servers are stationed in data centers globally facilitating various actions called cloud computing. When your business is on the internet running different software, exchanging data, and utilizing database storage, you are cloud computing.
Before the cloud, businesses managed data physically. Gone are the days of CD-ROM software purchases, and hot tech labs running your business. Cloud computing allows you to access files from anywhere since they are saved within a server versus on your personal user system. It frees up space and reduces expenses associated with tech companies during Web 1.0
For Example: Think of U-HAUL, but happening on the interweb—renting trucks, moving items from one location to the next, and garages to store even more. With one dreamy exception, any garage you rent would open to your items ready for use.
What Are The Benefits Of Cloud Computing In Business?
Here are 4 benefits of cloud computing in business:
- Rapid Scalability: you reduce expenses on hardware and data centers. Plus you extend service reach by running complex tasks in the cloud.
- Saves Time and Money: a cost-effective way to complete your workload, most cloud tech only charges you for the services that you have used.
- Faster Recovery: during a system crash, the cloud recovers your information with a synched copy of your data.
- License Flexibility: with cloud technology, you don’t have to purchase a license to use software or buy a new license when you want to transfer to a different service. Everything is readily available with a subscription contract.
Hybrid Cloud vs Multi-clouds vs AI
In cloud computing, there are a variety of cloud tech features a business can utilize. These features offer faster computing, better storage, and more security. Here are some common cloud strategies to deploy:
A hybrid cloud system utilizes a combination of localized, private, public, and third-party cloud tech. In this system, there would be servers to host business operations and hold data on-premises. Additionally, public and third-party clouds would be leveraged in the form of subscriptions or contract licensing. On-site cloud computing would be reserved for internal purposes only, and not be licensed to public users.
Each component in a hybrid cloud system is used simultaneously. A large organization will have on-premise servers for private cloud computing, as a security measure. External clouds are used for functions requiring high data storage and workload processing.
A multi-cloud system is a mix of private, public, and third-party clouds only. In comparison to a hybrid cloud system, a multi-cloud runs only on cloud tech, they have no physical infrastructure. A business with a multi-cloud strategy works through clouds open to public users, with various virtual services and servers to hold data.
Artificial intelligence offers you a wide range of computing services. Moreover, this type of cloud tech manages the processing of mundane tasks, previously performed by humans manually. By integrating AI into your cloud you can manage more data, faster, and with less effort.
What Are Cloud Based Licensing Services?
Cloud-based licensing services offer software minus the purchase of a license. This differs from traditional software services where it was served in its entirety, instead, licenses are shared and parsed out as a subscription. A cloud tech company will build a website, platform, network, or base structure that is remotely and virtually accessible. This allows software developers the ability to create a product and distribute it to their customers quickly and securely.
With end-user spending for SaaS expected to hit $145 billion in 2022, it’s no wonder cloud based licensing is on everyone’s mind.
Cloud based-licensing services result in high customer satisfaction too. They are like a la carte access to otherwise exclusive programming and computing capabilities. Payment terms are favorable because customers are charged by use, generally in increments of processing time, computing units, and storage units.
Different Types Of Cloud Based Licensing Models
Cloud based licensing models are now known as “as-a-service.” Here are the most used servicing structures for cloud tech businesses:
IaaS is the base, aka virtual machine, for a tech company to build on. It is the framework for your online service and hosts your cloud computing without you having to own servers, build your own networks, and rent out space. IaaS companies have the tools to handle the workload of your business in the cloud. Companies can enter a pay-as-you-go licensing option and are charged by computer processing units (CPU), graphics processing units (GPU), hourly, daily, or monthly usage.
PaaS is a developer’s world. It is a platform for programming, coding, and processing that layers on top of the infrastructure. When creating a new software application, developers like to leverage tried and tested operating systems. Since most developers aren’t trying to reinvent the wheel, PaaS is an environment for computing. Clients enter a pay-as-you-go contract in this service model, where you are charged per-app or based on GB usage.
SaaS is the end-user experience, on top of the IaaS and PaaS stack. It delivers a service virtually thru an attractive user interface (website). Built on layers of code and stored in the cloud, this service model lends out a pre-packaged format of its licensing for the public to use. SaaS works under a pay-as-you-go model that gives you a selection of payment tiers for whatever the company sells.
3 Best Cloud Computing Programs For SaaS
Let’s compare these three popular cloud computing programs, to see how they benefit your SaaS model:
Amazon Web Service (AWS)
AWS offers a wide range of cloud tech services to companies. From storage to management, to end-user support, there is a broad spectrum of servicing for IaaS, PaaS, and SaaS. It is your one-stop cloud shop of essential tech to facilitate your goals. Amazon’s web service allows you to work on their platform to build complex applications with flexible payment plans for users.
We like AWS for its ease of use, and innovation for startups. They are always advancing to compete in the fast-moving tech world, plus they offer education to their users, with each new update. It is cloud tech that grows with a business, seeing them through growth campaigns. Tech companies big and small, know that their data is going to be secure while they service their customers.
Google Cloud computing offers IaaS, PaaS, and SaaS but to a lesser degree than AWS. They lack developer languages and platform capabilities because they cater servicing to the Google brand. However, where they lack comprehensive service they make up in pricing, AI, machine learning, and data analytics. Google Cloud provides businesses integrated data storage in their applications which can be siphoned into actionable data for your company.
Microsoft Azure has 200+ offerings in IaaS, PaaS, and SaaS. They provide you with the customization tools needed to deploy and manage massive projects. With a cloud that can manage large-scale operating systems, Azure is finely tuned to established businesses needing advanced capabilities. They also have payment plans based on usage, with a starter plan for small businesses.
Cloud Tech For SaaS
A SaaS company with the latest technology is constantly adapting new cloud computing strategies. Offering your software or cloud based licensing service as a subscription will expand your client base, and make you more competitive in the market.