AppNeta | The Path

Why Apparent Networks uses a SaaS model

Posted on: September 16, 2010

According to Gartner, 95 percent of surveyed organizations plan to increase or maintain SaaS deployments, stating that cost savings are the biggest benefit for the appeal SaaS products. Unlike traditional applications that require a lump-sum investment and time to deploy into the business environment, SaaS offerings are broken into a subscription basis, favouring use by smaller businesses who may be without enough capital for a large organization wide purchase.  Pricing also tends to scale with the size of the subscription purchased, or the size of the organization itself, resulting in cost savings from a ‘pay for what you need’ sales model. There are benefits for the organization hosting the SaaS offering as well.  The recurring subscription fee allows for a predictable revenue stream, month to month.

SaaS products are not synonymous with Cloud products, many SaaS applications are offered in packages that can be deployed and hosted on a company’s internal network.  The PathView Cloud and PathView Premise options at Apparent Networks are one example of this.  However, with either option the SaaS Company will manage the product and provide centralized updates and support for the application.

Apparent Networks uses a SaaS model in order to provide ongoing updates to the entire customer base, provide on going sales and technical training, as well as provide continual customer support.  The bottom line is that a SaaS business involves a significant customer vendor relationship that a traditional lump sum purchase business does not. For software vendors and their resellers, as well as for resellers and their end user customers, this relationship is extremely beneficial for continual quality of service and business practices.

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