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How Can Your Company Benefit from a SaaS Solution?

Omar Popal
BlogCAE HubHow Can Your Company Benefit from a SaaS Solution?

Making Simulation More Accessible with a SaaS Solution

Software as a Service (SaaS)—described as the online delivery of a program suite—is a simple and cost-effective concept. Rather than purchasing a license for an application, such as traditional engineering simulation software, one can rent the application (a SaaS solution) which is hosted on the vendor’s servers. This relationship allows for more flexibility and reduced overheads with regard to maintaining the application.

Traditionally, engineering simulation software required a large initial capital investment, despite the unknown nature of the profitability or success of the project at the time, making the CAE technology inaccessible to many smaller companies. Things have changed with recent developments in technology. With SimScale’s web-based simulation platform, delivered as SaaS, companies can have access to powerful, industry standard simulation technology, priced according to their usage.

Small companies with few simulation projects can benefit by only paying for what they need. This also holds true for growing companies with increasing simulation needs, as it is fully scalable. With a web-based solution, upfront investments are low and a company can start risk-free with CFD, FEA or thermal simulation.

Benefits of SaaS

Here are a few benefits of a SaaS solution:

Flexible pricing

  • A reasonable monthly fee for access
  • Scalability according to usage requirements
  • Flexible payment terms

No large upfront hardware or software investment

  • Improved cash flow
  • More working capital
  • Higher Return on Investment (ROI)

All software resides in the cloud (off-site servers and infrastructure)

  • All software upgrades and improvements are invisible and require no input from the user
  • Ubiquitous (24/7) access
  • No extra cost for upgrades

Maintenance is already covered

  • No need for a complex, internal IT staff
  • Automatic upgrades ensure the software is always up to date
  • No security overheads

How Does Saving with a SaaS Solution Work?

For most companies, the total cost of ownership is the most important long-term variable when considering SaaS, compared to on-premises software. According to the Boston Consulting Group and McKinsey, using SaaS reduces the total cost of ownership and allows companies to save, but where do these savings come from?

Cost of Ownership Source of Savings with SaaS
Application infrastructure testing and deployment SaaS does not require infrastructure and application testing.
Basic infrastructure testing and deployment SaaS does not require infrastructure and application testing or deployment.
Training Requirements are lowered through simple user interfaces and self-training aids.
Customization at deployment Limited customization reduces deployment time.
Future customization due to changes in business processes SaaS vendors monitor customer usage to enhance the product, and customers provide feedback to influence feature functionality.
Data center rental, operations, security, compliance, and monitoring of incidents and resolutions SaaS includes these costs in the subscription price.
Software maintenance SaaS includes maintenance in the subscription price.
Unscheduled downtime SaaS has greater reliability than on-premises software.
Unused licenses Reduces unused licenses because users are added only as needed.

This short overview highlights some of the advantages that SaaS solutions bring to the table. If you or your company are interested in simulation software delivered as a service, SimScale can save you up to 80-90% on the cost of annual license fees of hosted software packages, while affording the freedom to simulate your designs wherever and whenever you want. All that is required is your browser and an Internet connection to run a numerical analysis!

Discover all the simulation features provided by SimScale. Download the document below.


  • Delivering software as a service, McKinsey Quarterly
  • Worldwide SaaS Enterprise Applications 2014–2018 Forecast and 2013 Vendor Shares, IDC
  • Profiting from the Cloud: How to Master Software as a Service


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