Hybrid SaaS Models are the Future: A CIO’s Perspective on Subscription-Based Solutions

The SaaS sector has seen a slowdown in growth, according to a report by the SEI. However, companies that use consumption-based or hybrid models still perform well, indicating a shift towards more adaptable and customer-focused pricing strategies.

Mahendra Upadhyay, the Chief Technology Officer at the Indian Broadcast Audience Research Council, believes that SaaS and pay-as-you-go models allow businesses to experiment with new products without significant financial risks. This approach enables businesses to learn from both successes and failures rather than solely relying on internal trial and error.

Technology providers are competing to offer SaaS solutions that replace traditional on-premises products in various markets, supporting customers in adopting a cloud-first strategy. However, providers face challenges in persuading existing customers with perpetual licenses to switch to subscription-based solutions.

From a CIO’s perspective, Upadhyay emphasizes the importance of adopting new technologies for businesses seeking relevance, expansion, and growth in today’s business environment. However, challenges such as technology viability and the availability of skilled talent can hinder this journey’s success. As a result, these models are expected to evolve with industry insights enabling quicker go-to-market strategies for new products and improving customer experiences.

The current market presents significant growth potential driven by economic factors. Providers are increasingly embracing subscription models that require minimal initial investment from customers and focus on consistently delivering value to ensure renewals.