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Node.js features – Will they be better?

For Node.js developers, it is an earnest expectation to improve the function of this cross-platform, run-time environment. Not only the developers, everyone will be better off if Node.js features are enhanced as we wish for: businesses will save time and budget for other project developments, customers will have a better experience with the application.

node.js feature, programming language

1. Node.js can connect directly to the database

At present, with the current developing state of Node.js features, it takes a longer time in the data process. Using a node/express application, instead of connecting instantly, you need to make calls to the database to continue the process. Sometimes it basically takes more than one occasion, even more than one module.
On the contrary, other platforms like JavaScript and Ajax allow developers to accelerate the speed of the data process by the offered capacity of the database connection. That’s the thing Node.js developers had better take note to improve their efficiency soon.

2. There is nothing called “callback hell” anymore

One of the most heating debates about the ineffectiveness of Node.js programming is the so-called term among developers “callback hell”.
JavaScript is asynchronous by nature, therefore the cross-platform environment executing JavaScript code – Node.js, relies labouriously on callbacks. A callback is a function that runs each time one task in the queue is completed. It is not the problem here, but the consequence of this step is really annoying. After keeping a number of queued tasks along with each callback of ones, the bad result is to directly impact the quality of code. To be clear, it’s a “situation where callbacks are nested within other callbacks several levels deep, possibly making it hard to understand and maintain the code.”
Yet, if you have a long-time experience with JavaScript and Node.js, you will not have a hard time to figure out how to solve this issue. Codes can be reconstructed and simplified with a few steps. But it’s still more convenient that you don’t need to think twice to simplify the codes in the beginning, right?

3. Performance bottlenecks with heavy computation can be resolved

Another disadvantage of Node.js features that developer community don’t like at all is its deficiency in heavy computations. Node.js is still a single-threaded environment, which people don’t consider as the most advanced technology at present. Some drawbacks reveal like the case a CPU-bound task (number crunching, various calculations) can block the event loop, coming up with few seconds of delay for all Node.js website users.

Depending on the consequence, the negative effects following after can damage the sufficiency of the business, more explicitly in the below example, user experience. In order to avoid these not-so-good outcomes, no one seems to recommend to apply Node.js programming to computation-heavy systems.

4. Node.js Tooling can reach to its maturity soon

Though the core Node.js modules are in its great stability, several tools in the npm registry (the registry of Node.js package manager) is in the state of poor quality or not precisely documented/ tested. Furthermore, the structure of the registry isn’t decent and convenient enough to suggest us the tools based on their ratings and quality. So, it seems to be not easy to find out the best solution suited to your purposes when the platform itself hasn’t been totally optimized for what we are looking for.
One of the greatest features of Node.js: open-source ecosystem, also reveals its deficit. In contrast with the fact that the quality of the core Node.js technology is supervised and justified by Joyent and other major contributors, the rest of the tools í out of this necessary supervision, therefore lack the quality and high coding standards set by global organizations.

5. Node.js Real-time with Socket.IO (WebSocket protocol)

First, let’s get a clear definition of Real-time with an attached example. With the assistance of WebSocket, real-time is a totally possible option to connect a client to a server. Once 2 sides have been connected, the client is able to receive the data without continuously refreshing the website. Otherwise, the server will also be able to receive data in real time from the client in the same connection.
Socket.IO is one of the most well-known real-time engines for Node.js. It’s great to implement this cutting-edge technology into your Node.js applications, right?
Socket.IO supports you in many tasks as the means of Node.js events: you can fire up a function when a new user connects to the server, listen for a connection event and emit a message over a socket and so on.
With its great advantages and functional benefits, a myriad of companies and developers chooses Socket.IO. Besides real-time analytics and monitoring, Socket.IO is the ideal tools for Instant messaging applications, streaming, document collaboration and many more.
To understand thoroughly how Node.js along with MySQL, MongoDB, Angular, PHP 7, Laravel 5 can elevate your business with the real-time application, let’s take a few seconds to know Helo Livestream Mobile Application. It is the first-ever live media streaming application that facilitates us to showcase our gifted abilities by getting noticed by our respective industries.
Savvycom’s engineering team apply the ultra-low latency live streaming video using RTMP. This application helps Helo Livestreaming Mobile Application to serve 300,000 users simultaneously, all data needed to be shown in real-time across a wide geographical area.

6. Node.js features: Supporting Community will expand more in the future

One sentence to sum up how great the Node.js Community is: “Not only the developers who contribute to Node.js make this platform so great, but those who create learning materials around it were also exceptional.”
Here are the credential proofs to justify the below statement

Amazing useful community-curated lists

If you start stepping into Node.js field and want to gain useful knowledge as soon as possible, you can join Node.js Community to ask for helpful pieces of advice. There are so many articles containing practices and shortcuts that you can definitely enhance your skills by going through them.
There are many other great advantages I can list out such as:

  • Available insightful Case Studies
  • Well-covered Node.js Authentication & Security
  • API development with Node.js has been made even easier
  • Awesome new tools
  • Amazing Free Crash Courses
  • The community can attend great conferences, like Node Interactive!
For further information about Node.js services, feel free to contact Savvycom to book a meeting.
We’re happy to discuss with you to find out the right Node.js web developer for your project or lend you our professional and expert developers.

 

Back-end development supports for front-end stability

Hiring a back end web developer to expand your capabilities on the world wide web can provide a more unique presence tailored to your needs. Outsourcing an expert back end web developer could be the ticket. Sure, there are many out of the box solutions that you might consider. However, in a world of copy paste, monkey sees monkey do websites, a totally new experience could enhance your chances of success.

When the internet was relatively new, websites were made by hand-coding HTML and similar languages. You pretty much had to know what you were doing. It was several years before services like Angelfire and Geocities became available. Any company wanting to build a presence on the internet had to hire savvy (no pun intended) developers with expertise that was learned through hours of studying and trial and error late-night programming attempts.

backend development supports for front end

After a while, there were many applications built to make it easier for the normal person to create content and share it on the internet. Besides the examples already mentioned, CMS apps like WordPress and Joomla were created to make it so that anyone could start their own website on their own host. This had positive and negative effects, some intended, some not.

Script Kiddies

Back in the day, (yes I said that), hackers created tons of scripts that could be used by either tricking victims into downloading it or direct injection by the user. Viruses meant to steal information could be loaded via the 1.44-inch floppy drive. On network aware machines, often times the virus had hidden code meant to send the stolen information back to the original creators’ storage location of choice. So you get what you wanted, but at what cost? Any information the junior hacker thought he had that was worth something is now worthless because the other guy has it too. The point is that creating your own code gives you peace of mind. No one will have scripts ready to demolish your pitiful WordPress security, because you have a totally unique data structure that has never had scripts written for it.

Not everyone has the time to become a programmer, however. You might already have a great idea for a website or mobile app, but you aren’t a backend web developer and don’t want to be. What to do?

In house or Outsourcing software development to a company like Savvycom?

web backend development by savvycom

Of course, Savvycom being a software outsourcing cooperative, we almost always recommend letting professionals such as ourselves handle the dirty work for you. We have a team of backend web developers with extensive combined experience, so we are confident we can help you. But is hiring an outsourcing company right for you? If you were to hire your own employee, you’d have to deal with a host of complications and expenses that wouldn’t be of any concern if you outsourced. The only occasion we recommend using your own employee is if you know and trust them and they have years of verifiable track record. Your project is small and you don’t require any promise to follow up or updates. We are fairly confident that in any case, teamwork is always better. You can pay for all of the expenses associated with an employee, or you can spend the same amount and receive the care and attention of an entire team of dedicated backend developers.

If you are skilled in basic web design and creating apps already, this could enhance your ability to showcase your front end offerings faster. While you work on front end interface ideas and infrastructure, Savvycom has your back on back end support. We can work with you and your team to create the perfect solution. If, however, you desire full-stack service and support, we can help you with that as well. Whatever you desire, front end user friendliness and usability are deeply integrated with back end technologies, so you will have to decide if it is in your best interest to do half of your work in house or to let a team of professionals who are passionate about their work take care of the whole thing for you!

front-end development, back-end development, server side

How back-end will support front-end development

It is the writer’s personal opinion that trust is the number one issue when considering who to handle your entire investments basic functionality. Savvycom has a long track record of satisfied customers. We’ve seen plenty of good looking apps that didn’t function correctly. A pretty front end doesn’t help if the website or app crashes every time someone wants to use it. Front end stability, compatibility, and versatility are all achieved through patience and understanding of the task given and the needs stated.

Outsourcing a backend developer allows you to focus on that pretty front end (which we can help you with as well!) without worrying about failure right off the bat, or worse, a glitch unseen until a customer finds it while trying to make a transaction! Even huge teams of developers can miss small details. Just look at major games like World of Warcraft. The Corrupted Blood incident was a lesson for them and programmers around the world. Savvycom has a moderately sized team that is neither too small or big, allowing free-flowing communication in a comfortable environment. We believe that team happiness is absolutely vital to end productiveness.

So, if you would rather not wait because you have a million-dollar idea, or perhaps you have been on the fence about leaping into a project where you have to deal with every gruesome detail of app development, you might want to look into outsourcing backend web development… hopefully with Savvycom!

Book a free consultation now

For further enquiries related to back-end development solution, please do not hesitate to contact Savvycom at:

Head Office: 12th floor, Viet A Tower, Duy Tan Street, Hanoi, Vietnam

We would love to give you a free consultation and suggestions to achieve your goals.

When and Why should we use Node.js technology in software development?

Nowadays, JavaScript is the most popular programming language and one of the foremost widespread software development technologies. With its popularity, it has dramatically changed the face of web development. A few years ago, it was magical what we could do with JavaScript, for instance easily running in the browser as well as on the server. If there is a web application project in mind, developers might think about building stack around JavaScript and other tools. After that, they will surely come across Node.js technology for the back-end development platform. Node.js is a tool that fueled the buzz around the use of JavaScript for server-side programming.

node.js technology for software development reasons

What is Node.js?

Node.js is a JavaScript runtime built on Chrome’s V8 JavaScript engine for easily building fast and scalable network applications. Due to its event-driven and non-blocking, I/O model makes it very efficient and lightweight. Node.js is a cross-platform runtime environment for developing server-side and can work within the Node.js runtime on OS X, Linux and Microsoft Windows. Moreover, it opens new opportunities for developers because it uses JavaScript on the front-end and back-end. For the last few years, Node.js technology became a trend and provides lots of off-the-shelf solutions. Additionally, it was used for variety mid-sized projects, however, a few years ago its capabilities took a major leap forward. As a consequence, Node.js takes advantage of a good ratio between product performance, developer effort and exceptional scalabilities. Overall, Node.js technology has become the most favoured JS framework for almost all web developers.

How is Node.js technology different from web JavaScript?

In terms of language, there is no difference between web Node.js technology and JavaScript technology. To be specific, Node.js has a different set of APIs. In browsers, you have a variety of Web APIs uncovered that assist users to connect with UI. Also, it offers some supports such as file systems or HTTP request, however, they are limited due to security concerns. Meanwhile, Node.js assists with different APIs suitable for back-end development.

What is Node.js technology used for?

realtime application using nodejs

To achieve the best application performance in web development, Node.js is used for real-time applications, collaborative tools and data streaming applications. Firstly, Node.js ensures great speed and performance. Also, it can support intense traffic of multiple short messages, or chatrooms when messages are displayed to many users at the same time. Secondly, the ability to process real-time flows are extremely good. Trello is a project management application that is rather popular with software development companies. This application was developed on the basis of Node.js and benefited from its event-driven, non-blocking model. Node.js is great for applications requiring immediate updates, such as various collaboration tools and online documentation suites. Lastly, Node.js is great for data streaming applications. It is critical for audio and video streaming applications. Netflix is an example of how Node.js is powerful in this environment. NodeJS can send large amounts of data in smaller packages instead of a single batch.

Why is it worth developing your project in Node.js?

node js benefits

First of all, using Node.js as your server technology gives your team a great boost that comes from using the same language on both the front-end and back-end. This means that your team is more efficient and cross-functional, which in turn leads to lower development costs. In addition to that, it is worth mentioning that JavaScript is the most popular programming language, so your application’s codebase will be easier to understand for more developers. You can also reuse and share the code between the front-end and back-end parts of your application, which speeds up the development process. On top of that, the Node.js community is constantly growing – the number of StackOverflow questions is steadily increasing, so the knowledge base for the technology is widely available. The fact that the whole Node.js technology stack is open-source and free is also great news. Finally, Node.js offers a great package manager, NPM and the amount of available open-source tools in NPM’s registry is massive and growing fast. These are just a few of the many advantages of Node.js that you should consider when choosing the technology for your next project.

Where Node.js technology can be used?

node js in web app development

Node.js can be used as a server-side web application. Node.js with ExpressJS can also be used to create classic web applications on the server-side. However, while possible, this request-response paradigm in which Node.js technology would be carrying around rendered HTML as not the most typical use-case. There are arguments to be made for and against this approach.

  • Pros:

If your application doesn’t have any CPU intensive computation, you can build it in Javascript top-to-bottom, even down to the database level if you use JSON storage Object DB like MongoDB. This eases development (including hiring) significantly.

Crawlers receive a fully-rendered HTML response, which is far more SEO-friendly than, say, a Single Page Application or a WebSocket app run on top of Node.js.

  • Cons:

Any CPU intensive computation will block Node.js responsiveness, so a threaded platform is a better approach. Alternatively, you could try scaling out the computation.

Using Node.js with a relational database is still quite a pain. Do yourself a favour and pick up any other environment like Rails, Django, or ASP.Net MVC if you’re trying to perform relational operations.

Conclusion

Overall, Node.js development services can be involved in any business sphere with a couple of exceptions mentioned above. Over the last few years, it rapidly advanced from a specific solution for runtime communications to a full-fledged back-end technology with a number of powerful high-level frameworks (e.g. Express, Koa, Next or Nuxt). This evolution made it even more attractive for businesses and any Node.js development company there is; software developers speak highly of it. And if you would like to know what companies are using Node.js in production, the list will be impressive, including such giants as PayPal, Netflix, Uber, LinkedIn, eBay, Walmart, Medium, NASA, Mozilla, and Trello.

Savvycom uses Node.js technology to touch the techniques of the future

At Savvycom, we use Node.js to stay updated with the latest technologies. Also, by using Node.js we can satisfy our great customers. There are some applications that we have developed applying Node.js technology such as Milky Chat and Shopping App.

milky chat, an app using nodejs by savvycom

Have you ever thought what your child is doing at kindergarten? Milky Chat is a communication platform for parents to connect with kindergarten teachers to get the latest images and information about their kids. Teachers use the mobile app to take photos, add notes and information about the kids in their classes such as how many diapers/clothes changed or how much water/milk drunk. Once there are new activities of the kids, their parents got notified on the mobile so that they can open the app to view and interact.

node.js app for shopping, made by savvycom

Another application that we have designed and developed is Shopping App – Sale & Reward System. This application helps shop owners to distribute Offers and Gift Cards to users who have installed Reward application on their mobile devices. Users can find and pick Gift Cards similar to the way they play the Pokemon Go game. Users can invite their friends, co-workers to use Reward application and get Reward.

Book a free consultation now

For further enquiries related to Node.js development solution, please do not hesitate to contact Savvycom at:

Head Office: 12th floor, Viet A Tower, Duy Tan Street, Hanoi, Vietnam

We would love to give you a free consultation and suggestions to achieve your goals.

What difficulties your team will face while developing an Android app?

Android is one of the biggest operating systems (OS) in the world as it dominates iOS by a large margin with a 73% market share in November of 2018 or 2.2 billion active smartphone users.

Being an open-source OS for portable devices, Android platform enables developers to customize and exchange source code in a cheaper and easier way than iOS does.

Also, Google Play Store, where 2.6 million apps were placed in June 2019, puts your app more directly and more easily into your targeted users.

According to annual statistics, the profitability of Android apps has been increasing steadily. Thus, quite obviously as you see this freedom it gives and the huge profits it brings have been creating plenty of opportunities for Android app developers.

However, your team must face great difficulties when developing an Android app.

What are those?

Let’s check it out.

the challeges in developing an android app

Software Fragmentation

Software fragmentation is the inherent limitation of Android that almost every Android app developer has to overcome. In terms of Android fragmentation, there are a number of definitions but simply, it refers to the number of different versions of Android OS in the market at the same time.

Completely different from iOS, whose updates are controlled by Apple, wireless carriers and device manufacturers are the ones in charge of Android updates. While iOS is exclusively designed for Apple’s hardware, Andoird is developed for a number of different device manufacturers. Therefore, they have to modify each version of Android to ensure compatibility.

For instance, the version of Android that runs on a Samsung device may be slightly different from the one running on an Asus device, even if the name of the two versions are the same.

Google annually releases a new version named after desserts with new features and improvements such as Marshamllow (2015), Nougat (2016), Oreo (2017), Pie (2018). The considerable diversity not only in the Android OS versions but also in device manufacturers makes Android developers find it difficult to catch up with the changes when developing an Android app.

It would be a horrible nightmare for a newbie to focus on multiple versions of Android while building Android apps.

fragmentation for ios and android app

Hardware Fragmentation

As mentioned above, Android is designed for a considerable variety of device manufacturers. This leads to not only the software fragmentation but also another kind of fragmentation, the hardware fragmentation.

If you are developing a mobile app for iOS devices, it’s much easier for you to make it run smoothly on devices that have the same hardware. But on Andriod, it’s totally a different story.

Nowadays, there are more than 170 devices running Android OS. That means Android app developers have to build Android apps that can be compatible with devices that have different screen resolutions, different camera button, different CPU speeds, different storage capacity and more. Is that another nightmare?

Hardware fragmentation is considered a side-effect of Android’s openness. If your team don’t carry out the QA inspection and audit well, this may cause users some annoying troubles such as:

  • Some apps may malfunction on some CPUs.
  • Games may keep freezing and crashing on some devices.
  • Apps appear the wrong size on some displays.
  • RAM and storage space may create conflicts with other running apps.
  • Issues on fingerprint sensors.

Android app development always requires a greater number of efforts to build Android apps with the highest performance and compatibility, especially during the testing process.

Security Issues

Android App Security

The software and hardware fragmentation cause worse trouble, the security. The biggest pros bringing the competitive advantages to Android turns out the biggest cons of this OS. Owing to the diversity, there is no standardisation, which leads to several security flaws.

Apple issues a set of strict guidelines for app development and has an extremely strict app-approval process. Android, meanwhile, doesn’t have any governance because of its non-standardisation.

Each year, millions of Android devices are the target of security attacks. Some popular security flaws and bugs that can be mentioned are QuadRooter Vulnerabilities, Android FakeID, mRST, Certified-gate, Android Installer Hijacking and more. Although a great number of flaws, not many manufacturers usually issue security patches.

However, we can not deny Google’s efforts when they have always been working hard to fix and improve Android’s fragmented security problems. As an Android developer, you need to keep in mind that protecting your app and the user data is your mission when developing an Android app.

Non-standard User Interface (UI)

One of the most advantages for developers when building apps is that they can customize the apps in their preferred way as Google does not have any rules of UI design. As a result, a number of apps tend to malfunction or wrongly display across different portable devices.

When the UI is incompatible with users’ devices, they may suffer from a horrible experience that the app directly brings.

The Android app developers always try their best to build Android apps whose UIs can bring the users more personalized experience; however, the varying UIs leads them into troubles with the compatibility. Their major challenge is finding the best way to make the app layout responsive on every single device.

Competitiveness

Android app development competitiveness

Android has millions of apps in its marketplace and we’re observing a steady increase in Android users and developers. Thus, making your apps visible on the search engine is a great challenge.

For example, there are hundreds of photo editing apps available on Google Store. If you have finished developing your own photo editing app and are going to publish it, it’s quite hard for your app to beat some famous apps like VSCO, Snapseed, B612, Pitu etc. to appear on the first page of search results.

To gain the popularity of your app, you need to accomplish more and more downloads and good reviews unless you pay money for the promotion. Android app developers can attract their targeted users by choosing a catchy name or a unique icon, paying attention to put the high-quality photos and right keywords in the description.

The more competitive it may be, the more efforts you need to put to prevent the traction losing.

How did Savvycom fight off the challenges in Android app development?

Image result for savvycom with android app development

At Savvycom, each person in our Android developer team has a wealth of qualifications and possess years of extensive expertise in developing Android apps. Following the agile methodology, we always do our best to ensure the best performance and compatibility of the apps we develop.

iHeartLocal is a mobile app that is written in native code. It enables users to share amazing places with their friends and acquaintances. This solution allows people to get access to the best deals that are recommended based on real experiences while plays the role of a marketing channel for merchants to approach potential clients.

Deeply understanding the common Android problems like software and hardware fragmentation and security issues, our team paid great attention to the testing process. It took months to carry out tests on several devices before we delivered the product to our client.

Savvycom is a strong and committed partner that has stayed with us since the day one”, said David Cheng, CEO of iHeartLocal. The app not only satisfied our client but also ranked #1 APP in the CES Mobile App Showdown and was rated as one of the top trustworthy referral networks in the US and European countries.

Book a free consultation now

Our Android app development team has always been striving to provide our clients with high-quality products to satisfy their requirements. If you have any ideas of developing an Android app, please do not hesitate to contact Savvycom at:

Connect us for various frontier technology services and IT excellence:

Head Office: 12th floor, Viet A Tower, Duy Tan Street, Hanoi, Vietnam

Subscription Business Model: The Key to Sustainability

To us, the formula for a company’s sustainable future does not equate only its ability to incorporate technological revolutions into the existing business model, but to alter the business model itself when the time comes. Our recommendation: the subscription business model.

1. Definition

Generally, there are 3 types of a subscription business model: Paid, non-paid, and circulation. However, this article will only focus on the paid option as it yields the highest profit.

The paid subscription business is defined as a business model where a customer must pay a subscription price periodically (monthly, yearly or seasonal) to gain access (partial or fully) to a product or service.

Subscription Business Model

Subscription Business Model | Savvycom Team

The price – often time referred to as ‘membership fee’ – is automatically deducted on a fixed, predetermined date from either the user online wallet or their authorized credit card. The price can also be varied, depends on:

  1. The number of users: personal, family or a company utilizing a service at one time.
  2. The frequency of usage: range from premium access (full price – full service) to limited access (free to minimum price – limited service).

Typically, users can choose to unsubscribe at any point in time without any barrier. However, there are businesses that include switching costs or penalty in the unsubscribe process to discourage customers from leaving their business in a certain time frame.

2. Examples

The paid subscription business model was first applied in magazines and newspapers back in the old days when readers from each suburb subscribed to their regional news outlets and received the printed version of daily news every morning. Now, it is utilized by several commercial businesses.

2.1 Companies that were born with the subscription business model

Several companies applied this business model from the get-go, with Netflix as the pioneer. Founded in 1997 in California, the company’s initial business model included DVD rental by mail. By 2007, Netflix expanded its business with the introduction of streaming media, while retaining the DVD and Blu-ray rental service. Their service plans are divided into three price tiers; the lowest offers standard definition streaming on a single device, the second allows high definition streaming on two devices simultaneously, and the “Platinum” tier allows simultaneous 4K streaming on up to four devices. That decision captured the first wave of technology revolution 4.0 and the company started expanded internationally. Now, it is considered to be an industry titan, being the number #1 destination for television entertainment with approximately 118 million subscribers globally.

Netflix, subcriber

Netflix Subscriber | Statista

Another field leader is Spotify – an upcoming titan in the areas of music streaming. The Swedish entertainment company provides DRM-protected contents from media organizations, record labels, and even freelance artists. Being a bit different from Netflix, Spotify operates under the freemium business model – meaning that the basic features are free (sponsored by ads placement, to be exact) with limitation while premium features such as high streaming quality or music download are provided via paid subscription. Being a 10-year-old direct competitor of Apple Music and Google’s Youtube, it now has a total of 159 million active users, successfully gone public through the direct listing and playing a vital part in almost every modern artists and labels’ marketing campaign.

Spotify, subscriber

Spotify Subscriber | Statista

Those are the two classic examples of paid subscription business model. Just within the last 5 years, we have many more being born – across all fields and industries: ‘Dollar Shave’ for shaving product, ‘Brilliant’ for education, ‘Trunk Club’ for fashion, ‘Better Health’ for psychology services … The possibilities are endless.

2.2 Companies that adapt to the subscription business model

Witnessing the triumph of the paid subscription business model, others corporation starting to jump boat.

For example, before 2012, Adobe focused squarely on selling boxed software and licenses for designers, photographers, videographers, web developers and audio professional. But 6 years ago, Adobe Systems announced the creation of Adobe Creative Cloud – which is what they believe to be “a radical new way of providing tools and services”. This package included the exclusive access to 15 software with monthly update and a shared platform to view and publish user’s creations, paid under the membership format of US$49.99 per month. The result: an unexpected success – according to Scott Morris, leader of Adobe Creative Cloud and Creative Suite. Within 1 year, they added more than 500,000 paying subscribers and 2,000,000 try-out subscribers. The update occurs more frequent thanks to high morale among their engineers. The rating is through the root.

Adobe Creative Cloud

Adobe Creative Cloud | Adobe

A similar story goes on YouTube. Founded as a social network slash video sharing platforms for individual creators, it was later bought by Google in 2006 and became the second-most popular site in the world – according to Alexa Internet. Traditionally, viewers of YouTube – after signing up – could gain access to almost every content published on the website for free. Content creators, also known as YouTubers, earned their income solely through advertising revenue from Google Adsense. But since 2015, there is an exception: the birth of YouTube Premium (used to be known as YouTube Red). It’s YouTube-owned subscription service that provides ad-free access to exclusive original content made in collaboration with its YouTubers – which will be paid by projects. It is reported that by 2017, there are 1.5 paying subscribers over 88 countries – a relatively small number compared to the company’s unpaid user: 1.57 billion. People are not easily persuaded to pay for content that was previously free. However, not much can be said about YouTube Premium’s success (or failure) for now, considering its young ages.

YouTube

YouTube Red Presentation | Business Insider

3. The reasons behind the movement

The paid subscription business model is not called ‘the model of the future’ by James L. Heskett, a foundation professor of Business Logistic at Harvard University, for no good reasons.

  1. Recurring sale: It’s simple consumption psychology. Since your customers already paid for it, they will want to ‘exploit’ your services to their best potential – creating a habit of using your product on an everyday basis. This, added with relatively positive experiences, get your customer to attach to your product.
  2. Better Customer Relationship Management: With long-term usage comes long-term data. As a result, the marketing departments can generate personalized marketing or database marketing in a more detailed manner. This allows them to better satisfy the most valuable customer, improve customers brand loyalty and reduce the overall customer acquisition costs.
  3. Cross-selling abilities: The power of this business model can be easily combined with the ‘Big Brother’ movement – corporation produce a range of complementary products that best used with one another. This acts as a suggestive marketing and allows your brand to increase the likelihood of customers trying out other products.
  4. A predictable stream of revenue: Typically, the subscriber’s free will be charged on the same date monthly or annually. This gave the accounting department a set date on which the sale revenue can be claimed, which make their job considerably easier to plan for reimbursement, risk management, and investment plan.
  5. The incentive for continuous development: This is especially important for software development companies and their application’s sustainability. Historically, the “one-time-purchase” model does not give developers much incentive to maintain a constant updating schedule for a released application or software. They’ve received the money and their job is, for the large part, finished. This means that the released product will soon be outdated and the sale will start decreasing due. However, the paid subscription model for software changes this situation. The predictable flow of income from an existing product acts as an immediate incentive, pushing the developers to keep working hard on their products and create a strong, well-designed competitor.

4. The barriers and how to cross it

With that said, if it is profitable and easy, everyone would already have done it. Of course, there are several barriers for software development companies to apply the paid subscription business model.

But don’t worry, our team has provided you with several ideas for the solution.

  1. Low customer adoption rate: in certain markets and economy, customers are still custom to the idea of one-time-payment, thinking it’s more of a bargain. This poses a substantial challenge to the companies’ marketers.
    Solution: While creating an educational campaign about the product long-term benefits (e.g.: convenience, save money in the long-run, provide an advantage for high-frequency users), remember to include different tiers of payment and allow at least 1-week try out for your customers.
  2. Vendor lock-in: Paid subscription models is likely to increase the possibility of vendor lock-in, which can have fatal implications for a customer if their business depends on the availability of a software. Without an online connection to a licensing server to verify their user status periodically, a software under a subscription-model would typically stop functioning, thereby making it impossible to continue using the software in remote/secure places.
    Solution: Have long-term customers or large B2B partners acknowledging of the issue and provide them with a special code that they can use to gain access temporarily when there is no Internet access. This, although does demand additional effort in CRM, provide the users the comfort that your brand cares immensely about their overall experiences.
  3. Require an accurate, reliable and timely system to manage and track subscriptions: with all customers’ data are now backed on the cloud, it’s crucial for your business to ensure that they have a smooth and secure interaction with the platform you provided. This – especially with software development companies – may involve a lot of initial capital investment and IT-related human resources, which create another barrier for startups or SMEs to adapt to this business model.
    Solution: If it’s out of your capability, go outsource. Let the professional take the burden off your shoulders. You can also learn how to do the things that you can’t yet by watching them navigating through the presented issues. And once your business has a strong product and is self-sustain, it’s up to you to choose the next step.

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Moving on to the days and age of industry revolution 4.0, with mobile application and software development as their based product, companies and businesses have much competition to face and continuous development to adapt. Paid subscription, the solution that we advocate for, allows them to finance their way along the product’s learning curve with a loyal customer base while providing developers the incentive they need for constant development.

It is, in our eyes, the most promising business model to build a sustainable future.

 
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  • Email: [email protected]
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