CPQ und SaaS: das bedeutet ein Produktkonfigurator in der Cloud

CPQ SaaS: Why you should use a product configurator in the cloud

Although “Software as a Service” (SaaS) solutions have been established on the market for several years, many companies are still asking themselves whether the cloud operating model is an option for them. Are you one of these companies? Then read the following article to find out what advantages a product configurator in the cloud offers – and how to successfully convert existing CPQ solutions from on-premises to the CPQ SaaS model.

Table of contents

What is the difference between Cloud and Software as a Service?

Cloud computing refers to the use and provision of hardware and software via the internet. This allows users to access applications, data and servers from any device. Einzige Voraussetzung hierfür ist eine Netzwerkverbindung.

Software as a Service (SaaS) is part of cloud computing. Software solutions are provided as a complete service that companies can subscribe to via a subscription. The SaaS provider takes over the complete operation and maintenance of the application.

SaaS model illustration
Overview SaaS model

What reservations are there about CPQ SaaS solutions?

Security concerns are the most frequently cited reservations of companies when it comes to moving their sensitive company data to the cloud. However, bitkom’s Cloud Report 2023 shows that these concerns are often unfounded. According to the report, switching to a cloud solution can even significantly increase IT security, especially for small and medium-sized companies without a large IT department.

According to bitkom, two thirds of companies that use cloud applications state that they have not experienced any cyberattacks in the past year. As part of the Lenze Group, we at encoway attach particular importance to IT security and rely on uniform, international standards for our cyber security processes.

What are the benefits of a CPQ SaaS solution?

Costs and transparency

Cost benefits play an important role when comparing cloud solutions with the on-premises variant. Companies save the high configuration, operating and infrastructure costs with a SaaS model. You have an overview of the expected costs right from the start. In addition, the “Software as a Service” operating model relieves the company’s own IT resources and creates more time for business-critical tasks.

Fast availability

Compared to the on-premises solution, the SaaS solution can be set up and rolled out quickly and easily. Areas such as corporate management, sales, product management or marketing can usually realise the introduction and secure operation of the SaaS solution independently of their own IT. This is a decisive advantage, especially in times when the shortage of skilled labour is gnawing away at the ability of many IT departments to act.

Scalability and flexibility

“Software as a Service” is suitable for companies of all sizes. From start-ups to large global corporations, companies benefit from the scalability of the operating model. If, for example, the need for additional user licences increases or the application is to be expanded, this can be booked easily and flexibly. This means that the model can be ideally adapted to the requirements and growth of companies.

Topicality and future viability

With a SaaS solution, the latest software version is always available to the user. Regular, automated updates are installed directly by the software operator. Service level agreements (SLAs) also ensure high availability of the solution. Continuous optimisation and ongoing development of the software ensure that users work with the latest technology and regularly benefit from innovations.

Low investment risk

The use of a cloud solution avoids costs for investments and their amortisation. By billing as a subscription model, expenditure is easier to plan and the investment risk for companies tends towards zero. At the same time, less capital is tied up in the company. The greater financial flexibility allows companies to focus more strongly on their core business and invest in it.

High security standards

Due to the increasing quality and intensity of cyber attacks, data security is more important than ever. The costs for a secure system increase enormously. New security loopholes must be continuously closed and the already scarce IT resources in companies are under great pressure to act.

With the SaaS model, the operator guarantees the user the security of the system. SaaS platforms meet very high security standards. They are usually hosted at several locations, use automatic backups and isolate individual services in their own VPCs (virtual private clouds).

Efficiency and sustainability

Compared to on-premises solutions, which are operated locally in a company’s own data centres, cloud solutions can significantly reduce energy consumption and therefore the carbon footprint of companies. The data centres of SaaS providers are usually much more efficient and operate in an energy-optimised manner. Environmental aspects are also playing an increasingly important role in software operations, particularly in light of rising energy costs, binding emissions targets and detailed sustainability reporting requirements.

Why should you use encoway CPQ as a SaaS solution?

With the traditional “on-premises” configurator solution, you purchase the software and run it yourself on your own hardware. You must regularly install updates to ensure further development, maintain compatibility and guarantee security. To do this, you need appropriate resources such as servers, clients and a trained IT department.

In the event of possible failures or attacks by hackers, you are dependent on your own backup to secure your data. Operation in the CPQ SaaS model takes away many of these worries. With encoway CPQ as a SaaS solution, we offer you the complete operation of your configurator from a single source. We host the SaaS product configurator in an efficient and certified infrastructure. Your securely encrypted master data remains in Europe and we can therefore ensure the highest security standards for your CPQ solution.

At the same time, you benefit from smooth operation with 99.98% freedom from interruptions. With the product configurator from the cloud, you also remain flexible, as the solution is scalable and you can quickly and easily adapt the service package to your needs. Our regular upgrades and security patches in the infrastructure also ensure that you are always up to date.

How you benefit from encoway CPQ as a SaaS solution

  • Security of application and infrastructure
  • Availability of services and the underlying infrastructure
  • Adaptation of operations to new requirements from the product / project
  • Little coordination with internal IT, no commitment of resources
  • Reduced costs of deliveries in the project
  • Less downtime due to automated deliveries
  • Availability of the solution independent of your own data centre

Can I switch from encoway CPQ On-Premises to the SaaS model?

With the right planning, you can use existing Successfully migrate product configurators to the cloud. Switching from an existing encoway CPQ on-premises solution to the CPQ SaaS model is usually possible within a few days. The prerequisite for this is that the solution you are using corresponds to the current status of the encoway CPQ application. 

When you switch to the cloud model, the full scope of the software solution is immediately available to you so that you can use your solution as usual.

Is switching to the encoway CPQ SaaS model time-consuming?

The actual migration effort depends very much on the customising of the respective configuration solution and possible interfaces to third-party systems. If you would like to switch from your existing on-premises solution to the encoway CPQ SaaS model, please contact your encoway project manager directly. They know your customised CPQ solution best and will work with you to ensure a simple and clearly structured process.

SaaS migration of your encoway CPQ solution – in 3 steps

Step 1: Creating a migration concept

In order to determine the actual scope of the migration project, we first carry out a detailed system assessment. We analyse your existing CPQ system, including all interfaces to third-party systems. Based on this analysis, we then develop a customised migration concept for your applications and define how your data will be transferred to the new system.

Step 2: Provision of test environment

Before your new CPQ SaaS solution goes live, we naturally ensure that all functions, including the interface functionalities, also work in the new environment. To this end, we build a test environment for you in which the CPQ solution can be tested in detail.

Step 3: Migration and go-live

Once all functional tests have been successfully completed, nothing stands in the way of the encoway CPQ solution going live in the cloud. At the time agreed with you, we switch your new encoway CPQ system, including all migrated interfaces and data, live and switch off the previous system. Your migration from on-premises to CPQ SaaS has now been successfully completed.

Icon Information

Would you like to use encoway CPQ as a Software as a Service solution?

We will be happy to advise you and show you the potential of your CPQ solution in the cloud.

Dirk Bromberg
Dirk Bromberg

Business Development Manager encoway CPQ SaaS, encoway GmbH