SaaS businesses seem to have a good evolution at stock exchanges these times

A Software-as-a-Service company offers software from the cloud to its users

I touched the issue of SaaS (“Software as a Service”) in this post, when I discussed the delivery form of this software, looking more like a services and a little bit about differences compared to classic licensing model.

Companies that offer SaaS seem to be afloat the water in this new economic context.

As any novelty introduced by a new model in IT, this gets traction for various reasons, one of them might be because avoiding unnecessary costs since the value proposition of a SaaS could be maybe similar to a classical software application, but as a plus it includes also smaller fees for licensing than the classic model. In addition, nothing is delivered phisically (no CDs, no DVS, nor memory sticks with compiled installation executables – and therefore no headache with this bunch of stuff that is hard to control by the vendor not to be multiplied without a license by the buyer).

An understandable reason might be the job cuts that would indicate that many businesses might consider to reduce their costs, and since cloud computing looks like a cheaper alternative, this would be a way to minimise cashing out during this virus crisis. Although cloud costs – if not monitored – could add to the bill a significant amount also.

Source: https://techcrunch.com/2020/05/08/saas-stocks-defy-gravity-amid-pandemic-record-job-losses/

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