The software as a service market in France

SaaS - "software as a service" - is a new software distribution model. Two characteristics distinguish SaaS from traditional software: remote use and price.

In the case of traditional software, it is used as a physical product, of which the user acquires definitive ownership on purchase. The purchase of the Office Family Pack is a typical example of this first type of software.

SaaS, on the other hand, is used remotely, with variable pricing. According to GartnersaaS can be defined as "an application that is owned, offered and managed by one or more vendors. The provider offers this application on the basis of a set of codes and definitions relating to the data used, based on a "one-to-many" model. one-to-many " model, with revenues indexed to frequency of use or generated on a subscription basis. Salesforce and SAP are among the best-known and most widely used examples. SaaS is therefore not used as physical software, but as virtual software used as a service through the cloud.

However, understanding the SaaS market remains variable, given the complexity of the services offered by software publishers.

Two approaches are possible:

SaaS is seen as a software product in its own right, meeting a specific business need, such as human resources management. SaaS is then an integral part of the cloud computing system.

When it comes to marketing, SaaS is seen as an IT solution that can be marketed in the same way as hardware (a computer) or a service (consulting, for example), but as a subscription rather than an acquisition.

In the first approach, SaaS is the ultimate pillar of the three elements used by cloud computing. The aim of cloud computing is to make computing or storage capacity available to users, whether private or public, remotely. SaaS thus complements the other two pillars of cloud computing. The first is infrastructure - or "IaaS" (Infrastructure as a Service) - which is required to set up a remote network. The second, the platform - or "PaaS" (Platform as a service) - enabling the establishment of a dedicated environment for hosting the software that SaaS represents.

From this perspective, SaaS is the heir to application services, known as ASP (Application Service Provider). SaaS orchestrated a fundamental difference from its predecessor, whose principle was to install and use applications directly on a computer. By revolutionizing the use of applications via the Internet, SaaS has not only changed the way applications are used - the main benefit of which lies in their remote use - but also the possibilities for integration and partnership.

From a commercial point of view, SaaS is integrated into the software segment, and is therefore one of the three traditional segments of the IT industry, alongside hardware (i.e. computer, mobile) and software.i.e. computer, mobile) and services (i.e. management consulting and database integration). The software segment covers networking, development and usage applications. These applications are either physical (traditional software) or remote (SaaS).

SaaS is designed for both private and professional use. In this context of professional use, SaaS supports companies across the entire value chain. Several categories of software are commonly distinguished:

Enterprise resource management (e.g. accounting, suppliers). This software is known as ERP - Enterprise Resource Planning;

Customer relationship management (e.g.: relationship history). These are known as CRM - Customer Relationship Management;

Product management (e.g. after-sales service, localization). These are known as PLM - Product Lifecycle Management;

Office automation (e.g. spreadsheets);

Design (e.g. computer-aided manufacturing).

By 2021, 45% of software sales will be generated by SaaS. This percentage is set to increase at the expense of traditional software, for a variety of reasons (lower cost, more practical, etc.).