Transformation to SaaS (software as a service) is driven by both business and technological factors. From a business perspective, software companies seek reliable recurring revenue instead of spending on research and development up front and hoping customers buy the product or upgrade on the back end.
From a technology perspective, software users often do not have the expertise and resources to maintain the infrastructure necessary to run a complex software product like, for example, a distributed database. In exchange for recurring revenue, the producer takes on the burden of operating and maintaining the software for the customer.
Clearly, SaaS makes a lot of sense for the maker of a distributed database. But what if your business isn’t software, per se, but manufacturing, or logistics, or insurance, or some other business service? SaaS might still make sense for you. Welcome to SaaSification.
The line between what is software and what is a business service has long been blurred. The market views companies like Uber, Grubhub, and Amazon as technology companies. Meanwhile, Yellow Cab, Domino’s, and Walmart—companies that deliver the same types of consumer services, and also have websites and apps—are not considered tech companies. Nor are most companies that provide business services, even though