Random Thoughts on Software Engineering

SaaS - Crack Cocaine for Enterprises

enterprise-crack

We’ve all come to appreciate the convenience of services like Netflix, Spotify, and YouTube Premium. We live in a subscription-based world where nearly everything—content, music, apps, software—comes at a recurring cost.

Businesses have eagerly following, or even setting this trend. Subscription-based, cloud-driven models (often encouraged by how cloud billing works—shifting costs to customers with minimal risk) appeared ideal: no need to invest in servers; just rent the resources you need. It felt simple, scalable, and efficient.

However, what began as a smart, flexible solution has gradually turned into a financial strain. As more operations—and sometimes entire companies—shift to the cloud, the cost implications become more pressing, especially for digital product providers. With cloud vendors promoting pay-as-you-go (PAYG) pricing, businesses are increasingly seeking ways to pass these ongoing costs onto their customers. This has created a climate where nearly everything feels like "Cost as a Service" (CaaS), as "Everything as a Service" (XaaS) becomes the standard.

Just as consumers are experiencing subscription fatigue—burned out by constant payments and engagement—businesses are feeling the same pressure. What used to be one-time capital investments have turned into persistent operating expenses, pushing companies to continually introduce more subscription offerings just to stay financially afloat.

Signs of cloud subscription fatigue are beginning to quietly reshape the IT industry. Many mid-sized and large organizations are rethinking their cloud spending—often because they rushed into cloud adoption without fully understanding the cost implications and how to operate cloud services efficiently. Even well-funded enterprises are realizing that maintaining greater control over their digital infrastructure can also mean better control over expenses. As a result, hybrid models are gaining traction: a combination of cloud services, on-premise systems, and open-source tools is helping companies regain financial balance.

The goal isn’t to abandon the cloud—it remains powerful and valuable in many situations. The aim is to avoid overdependence on subscription models.

XaaS isn’t a universal fit. The priority should be finding a model that aligns with your specific needs, budget, and long-term objectives.