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CPQ SaaS: The success model for your configurator

Learn all about the benefits of the successful Software as a Service model and why you should run your configurator in the cloud.

IT security is more important than ever for companies. According to a representative study by the digital association Bitkom, nine out of ten companies in Germany (88 percent) will be affected by attacks in 2020/2021, causing annual damage of more than 220 billion euros. At the same time, there is enormous pressure on companies due to current challenges such as a shortage of skilled workers, a lack of raw materials and supply bottlenecks.

In these highly dynamic times, the 3 largest cloud solution providers are vying for users. With the move to the cloud, all problems are said to be solved – access from everywhere – fitting the modern working world that combines home office, mobility and on-site presence for the optimal work-life balance. Microsoft, Amazon and Google are using the latest technologies to make the move to the cloud easy.

Is cloud the solution to all IT problems? What is the difference between cloud and SaaS? This article answers these questions and more.

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

Cloud describes the device-independent provision of shared computer resources as a service via the internet. For example, servers, data storage or applications can be booked quickly and easily. Billing is based on the intensity of use of the services used.

Software as a Service (SaaS) is a part of the cloud. It describes the operating model with which software solutions can be booked as a complete service via a subscription. Software and IT infrastructure are operated by an external IT service provider and used by the customer as a service.

SaaS model illustration
SaaS model illustration

What are the benefits of cloud or SaaS solutions?

Cost advantage, fast availability, security aspect – new technologies in a modular structure accelerate further development rapidly. Professionals are constantly challenged to stay on the ball. New security gaps have to be closed in order not to offer any opportunities for attack. In addition, the lack of skilled workers is gnawing away at the ability of many IT departments to act. The risk of being hacked increases and the costs for a secure system rise enormously – another reason to look at SaaS models.

Can product configurators also be completely outsourced to the cloud?

Product configurators can also be provided via the cloud. With encoway SaaS we offer you the complete operation of your configurator by encoway. The SaaS product configurator is hosted in a certified infrastructure in Europe. In this way, the securely encrypted master data remains in Europe. Our customers benefit from a smooth operation with an interruption-free rate of 99.98%.

Is it really that simple to rent software and is it worth the investment?

The following example serves as an illustration: As a medium-sized company with 500 employees, you operate a configurator linked to your ERP. The software generates new orders via the integrated shop and your dealers, customers and your own sales department process the orders through it. The software is therefore responsible for you receiving and processing orders.

With a traditional configurator solution, you purchase the software and operate it yourself on your own hardware. For further developments and to maintain compatibility and security, updates must be installed regularly. For 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 must rely on your own backups.

Operation in the SaaS model takes away many of these worries. In this subscription model, you rent the SaaS configurator within the framework of a monthly subscription fee. The software provider is also the operator of the configurator. You do not have to worry about the appropriate hardware and updates. Furthermore, your own IT team (if available) is not blocked with additional tasks.

In summary: What advantages do SaaS models offer?

  • Compared to traditional operation, the “Software as a Service” operating model saves effort in the company’s own IT and guarantees maximum security in times of increasing hacker attacks.
  • Corporate management, sales and marketing can implement the introduction and secure operation of a SaaS product configurator independently of the IT department.
  • Cloud databases allow more data to be processed in less time, improving the ability to derive business decisions.
  • The investment risk tends towards zero due to a monthly subscription model.

Do you have questions about our Software as a Service model? Then contact us and we will be happy to advise you and show you the potential for your company.

Dirk Bromberg
Dirk Bromberg

Business Development Manager encoway CPQ SaaS, encoway GmbH