With over 1 million active subscribers, Amazon Web Services (AWS) has a higher market share than all its competitors combined. It has become a go-to choice for SaaS companies.
According to Forrester Research, the implementation of the SaaS model on AWS has reduced the time for developing a minimum viable product by 30 to 50%. This, in turn, has increased gross profit margin by 70% and operating margins by 41%.
That said, here are 10 reasons why SaaS companies love AWS.
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Scalability
AWS is the right platform for growing SaaS companies looking to build their business from the bottom. It provides the right tools for SaaS companies to get started on the cloud platform. SaaS startups prefer the AWS “pay-as-you-go” model that facilitates their business expansion without incurring high costs. Besides the budgeting considerations, SaaS companies can focus on business growth – without measuring the underlying computing resources.
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Availability
With 99 availability zones (AZ) across the globe, AWS provides real-time availability for any growing SaaS company. High availability ensures zero downtime for SaaS applications and continuous access for SaaS users. With their choice of AZ, SaaS companies can set geographical limits on their offered services to their customers.
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Cost Optimization
Founder Jeff Bezos has compared Amazon Web Services to the “utility companies of the early 1900s.” Cost optimization is essential for the business success of any growing SaaS startup. Without it, organizations often find them exceeding their cloud budgets. As an example, reserved instances from AWS save companies around 75% of their overall cloud costs. Similarly, AWS spot instances enable SaaS companies to “bid” on available cloud resources at lower prices.
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Time Efficiency
SaaS application on the AWS Cloud enables time efficiency in many ways, including:
- Simultaneous application deployment across multiple regions and zones
- No installation and configuration of on-premises hardware and IT infrastructure
- Seamless access to cloud applications and resources by AWS users at any time and from any location
- User-friendly cloud platform with a smaller learning curve
Each of these reasons enables SaaS companies to spend less time on application deployment and maintenance. This means IT teams can spend more time handling other operational tasks.
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Security
SaaS companies like HubSpot and Okta reported major data breaches in March 2022, which resulted in the breakdown of their SaaS applications. For growing SaaS companies, a successful cyberattack or data breach can seriously impact their operations and revenues. With a host of distributed data centers, AWS offers elevated data security through diversification. With AWS, companies no longer have to worry about a “permanent” data breach that can bring down their entire operation.
Further, AWS provides security practices like continuous monitoring, data localization, and end-to-end security for its cloud-hosted applications.
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Serverless Architecture
More SaaS companies are adopting serverless architecture for benefits like cost optimization, overhead management, and transparent scaling. According to McKinsey, SaaS and serverless is a “winning combination” to scale new business. With a serverless environment, SaaS-based product companies can focus on writing application code instead of running the code.
Using AWS services like AWS Lambda, SaaS companies can “virtually” run any application and backend service (without any administrative costs). All that they need to do is to upload the code – and Lambda takes care of running and scaling the code.
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Agility
Agility is another reason why many SaaS companies move their application to the AWS cloud platform. With the “traditional” on-premise infrastructure, SaaS companies cannot hope to move quickly and scale their applications based on increasing demand.
Through its scalable cloud infrastructure, AWS Cloud enables them to roll out new applications and additional features to meet consumer needs. They can quickly provision the required resources on demand. For example, AWS CloudFormation enables SaaS companies to define infrastructure templates to provision their resources.
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Speed and Ease of Use
The AWS cloud platform is easy to set up and use for new SaaS providers and application developers. Additionally, it provides sufficient documentation and learning resources for new users to manage their services.
Besides, SaaS teams find it faster to create business applications and deploy them on the AWS Cloud. AWS-hosted cloud applications are beneficial to sales professionals looking to easily access business information while on the move. Through regular customization and automation, AWS also helps improve the experience for SaaS users.
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Workspace Collaboration
Workspace collaboration is an essential need for SaaS companies looking to onboard new employees from remote locations. With the AWS Cloud platform, SaaS project teams can work and collaborate from remote places. Through third-party APIs, remote employees can also integrate external apps for CRM, messaging services, and data analytics.
Additionally, AWS users have real-time access to the largest content delivery network from any location. Thus, AWS customers have quick access to SaaS applications using any device.
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Reliability
AWS is among the most reliable cloud platforms for SaaS companies. Besides stopping online threats, it can quickly identify and handle unexpected system failures and disruptions. These are typically caused by hardware failures, network problems, and unanticipated events.
Additionally, AWS facilitates continuous monitoring and logging that provides real-time visibility into the system’s performance. This can alert SaaS companies to any potential security breaches and issues. AWS logging enables organizations to detect any suspicious user behavior or activity.
Why SaaS Companies Need a Cloud Implementation Partner
SaaS companies can leverage the above benefits by adopting and migrating their applications to the AWS Cloud. However, before making the transition, they must seamlessly assess their existing environment and plan their migration process. This requires the expertise and experience of a cloud implementation partner like enreap.
As an Amazon partner, enreap offers a host of AWS services to its global customers. Our professional services team can help you streamline the pre-migration, migration, and post-migration process of transitioning to the AWS platform.
Interested in learning more? Get in touch with our experts.
