SaaS (Software as a Service) is one of the most convenient software delivery models that requires only a browser and access to the internet. It’s an alternative to on-premise software delivery model. SaaS is now widely used by regular users, startupers, small and large companies. Since more and more businesses are switching to cloud (O’Reilly’s survey revealed that nearly 88% of businesses use at least one cloud service), the popularity of SaaS grows intensively.
Thinking about SaaS app development but not sure if that’s what your business requires? Well, you need to calculate all the risks and make sure that SaaS development is a truly beneficial way to go. In our article, we have listed key benefits of SaaS. So, read on and find out if there are enough SaaS advantages to make it a part of your business.
Table of Contents
What is SaaS?
SaaS, or on-demand software, is a delivery model in which software is supplied on a subscription basis and is hosted centrally. In simpler terms, SaaS is a software built on cloud infrastructure and available via the internet. For example, Google Workspace, Dropbox, and Salesforce are SaaS in cloud computing.
SaaS benefits for users
Almost all people in the world use some SaaS services. But what are their advantages over the other software delivery models?
- Flexible approach
SaaS offers the pay-as-you-go model and various payment methods. Thanks to that, SaaS services are something that almost everyone can afford; a user can choose a suitable payment model and pay, let’s say, $6 for a limited set of functions instead of paying $20 for access to functions that he/she will never use. If more functions are needed, a user can switch to a more progressive (and expensive) type of subscription in a matter of minutes.
- Cost-effectiveness
SaaS allows saving money in many ways. A user doesn’t have to buy software or pay for its installation, upgrade, maintenance, and buy expensive hardware. Thus, you can save a lot of money by using SaaS.
- Data stored in the cloud
SaaS, as one of cloud-based software solutions, keeps all the data in the cloud. It’s saved on a regular basis which means that you will never lose it because of technical issues with your device.
- Accessibility
On-premise software needs to be installed on your PC, updated and maintained on a regular basis. SaaS-based product updates automatically, and don’t have to be installed on any of your devices. All you need to access a SaaS service you paid for is to log in. This is a good reason to choose SaaS development over web app development: SaaS services are available via both PC and mobile devices.
- Eliminated risks
When you have to buy software licensing, you are risking to pay money for a product that won’t be suitable for you, or won’t meet your expectations, or is just bad. SaaS services offer various solutions for this issue. You can try a SaaS product during the pay-free trial period (from a few days to several months), pay for a one month subscription, or choose the cheapest subscription model. This way, you will be 100% sure that you should or shouldn’t spend more money on this or that software. This way, thanks to the try-it-before-you-buy-it model, you can eliminate financial risks.
The benefits of SaaS for businesses
After the global pandemic period, more and more businesses are switching to SaaS. But is the growing need for remote work is the only reason for SaaS success?
- Predictable outcome
SaaS offers a recurring revenue model which means you can easily predict your revenue.
This is especially great for founders that just launched a minimum viable product (MVP), and don’t want to risk. SaaS allows making your profit obvious.
- No need to manage technical issues and maintain a software
Some companies need to house the whole IT department just to deal with technology-related issues that traditional on-premise software can cause. In the case with SaaS, the vendor is the one responsible for all the problems that may occur with the software, so you won’t need to involve your internal team into it or hire external specialists. This way, you will save valuable time of your workers on upgrades and bug fixing. In addition, you and your team will be using the latest versions of the SaaS automatically, without having to constantly look for updates and install the latest version manually every time.
- The most convenient solution for distributed teams
Since remote work becomes more and more popular, businesses need to think about how to provide all that is needed for their remote workers in technical terms. Thanks to SaaS, you can create a virtual office by just paying for a subscription. Any member of the team can get access to the service and data stored and make changes into it in real time whenever they are. This way, it doesn’t matter what happens, your team members will be able to work from home or any other site they prefer.
- No need to invest in hardware and infrastructure
When using traditional software, you have to upgrade your hardware and infrastructure if you want to scale up; when using SaaS application, you just buy a more advanced type of subscription that offers extended opportunities.
- The ability to use APIs
APIs (Application Programming Interfaces) allow integrating SaaS apps that you use for your work into the other software (for example, if you are a marketer, you probably want your analytical software to be integrated with social media). Thanks to that, you can conveniently use all the tools required for your work in one single program instead of opening multiple tabs.
- High compatibility
It’s obvious that software support and upgrades are quite expensive and time-consuming things. That is why it’s quite problematic to make an on-premise software equally available for each member of a team because of different types and versions of the operating systems and devices they use. In the case with SaaS software, the vendor is the one that guarantees that the service will work as it should regardless of the gadget used.
- Simple backups and data recovery
Traditional software that can’t offer advanced automated solutions requires the process of data backups to be made manually on a regular basis. Obviously, it may be quite labor-intensive. At the same time, SaaS services guarantee automated backups that don’t require user intervention, being able to ensure data integrity.
- Increased security
The data stored in the cloud-based application is very sensitive, and the cyber criminal can get access to it just like you – from any device from any part of the world via the internet. That is why SaaS services use complex, frequently AI-based security measures. That is why it’s fair to say that SaaS solutions keep the data safer than traditional software.
- Simpler and faster adaptation period
As you know, SaaS is an internet service. Each person uses internet services in everyday life, for one reason or another. So, since SaaS services are delivered over the web, it makes the process of adoption easier. They usually have a much simpler learning curve in comparison to traditional software.
Who can benefit from SaaS?
It doesn’t matter if you want to create your own SaaS startup, or just want to use SaaS in your business, it can offer some benefits in any case.
- Startups
On the initial product development stages, founders often don’t have the budget, time, and the required expertise to build their own custom software. Subscription-based software can cover particular needs of a startuper without large initial investments.
- Small businesses
Just like startups, small business owners just don’t dispose a lot of resources, so they can use SaaS technologies to save time and budget instead of wasting valuable resources on creating their own high-powered software to fulfill their business needs. For example, a founder can pay a monthly or annual subscription to use CRM (Customer Relationship Management) as a service instead of creating custom CRM.
- Large companies
Large companies may want to use SaaS to effectively fill the gaps during product development lifecycle and for small, short-term projects.
Do I need SaaS?
In a Harvey Nash survey, 73% of 1,724 respondents claimed that SaaS is important for realizing business goals. Thus, we can conclude that the vast majority of business owners use SaaS for business growth. And it’s not surprising that SaaS market value is projected to grow up to $208.1 billion. So, as you can see, many founders are switching to SaaS now in order to take their business to the next level.
Conclusion
Growth is what every business wants. Thanks to SaaS, you can be sure that technologies you use for your business are scalable and always stay up-to-date. SaaS offers numerous advantages for both users and businesses. So, if you are thinking about implementing SaaS in your own business or want to start your own SaaS startup, you are probably not mistaken.