Tres discusses the benefits of a SaaS model over traditional software licensing.
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SaaS is changing the industry landscape
Software as a Service (SaaS) offerings are common across industries, as buyers seek value and justification for their investments soon after acquisition. Sophisticated companies have become less interested in perpetual licenses, which are characterized by large sunk costs, frustrating deployment cycles and the challenges of managing out-of-date software.
The evolution to the SaaS model is based in part on the concept of Time to Value (TTV), which is much faster than traditional licensing. The goal of this model is to ensure customers receive a return on investment soon after deployment, while also providing a constantly evolving and up-to-date solution.
“Traditional” technology companies (e.g., Microsoft) have been successful in changing their product offering from the one-off purchases to a subscription-based offering. These companies have been forced to evolve to become more agile and better able to leverage the fast-paced, constantly changing world of technology.
In shipping, the effects of the digital transformation and SaaS solutions are only starting to emerge. Shore teams are increasingly using SaaS platforms but vessels predominantly still rely on older and less efficient software and connectivity solutions. The potential for implementing SaaS solutions within the industry is enormous.
We are witnessing innovation to improve communication and data sharing in-between vessels, ports, offices etc., allowing for vessels and ship-owners to perform more efficiently in a marketplace where rates and cash breakevens are under extreme pressure. Likely, and as what we have seen in other industries, incumbent software and service providers will be pushed (or outpaced) by new entrants with a better and more agile service offering.
At Tres, we have leveraged our SaaS model to help customers quickly assess and improve performance of their vessels. Our software and service platform bring together the agility and sophistication of big tech with the “vessel monitoring center” capabilities developed by the world’s largest shipping companies. The goal is to provide a SaaS solution to constantly monitor and assess performance, with the objective to identify fuel savings and emissions reductions initiatives, among others.
Is SaaS right for your organization?
We think “yes”, and it’s due to a handful of key benefits:
(1) Faster TTV
(2) Scalability and integration potential
(3) Ease of access to upgrades and new releases
(4) Lower capex and total cost over the lifetime of the investment
You do not need to be a big tech company or a large shipowner (150+ ships) to benefit from a similar capability set. Tres has developed a simple SaaS model to help shipping companies improve vessel performance without a lot of the downside risk associated with older licensing models.