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12 Advantages of SaaS (Software as a Service)

19 mins

SaaS

Many companies are noticing the inefficiency of traditional on-premise software that implies its installation, configuration, and server management. But what if you could use the software you need to be productive without all this hassle? Turns out, you can! SaaS is here to revolutionize the way businesses use technology and limit the resources that this sector needs. 

In the past decade, statistics showed that SaaS reached higher levels of development compared to any other software solution. The SaaS market increased five times since 2010 and it keeps growing, which means that more companies realize the advantages of this solution. 

Here is where the main advantages of SaaS come into the discussion. We will clarify what is SaaS, how it eases your work through efficient benefits, and how to build the most viable SaaS solutions along with SumatoSoft

What is Software-as-a-Service (SaaS)

SaaS is newer on the market compared to IaaS or PaaS. The user will access SaaS programs and applications via a network connection. The provider will host the software while the user has access to it through a web browser.

Unlike other cloud computing methods, SaaS doesn’t require any type of maintenance or implementation. Companies and individual users have to subscribe to the software in order to be able to access it remotely. Therefore, the advantages of SaaS become superior to the advantages companies can have when using other types of cloud computing.

Differences between SaaS and On-Premise 

SaaS and On-Premise are two different types of software. The main difference between these services is that On-Premise is only available at the location of the user while SaaS can be used remotely.

Unlike SaaS which is available to the user instantly once they subscribe to the service, On-Premise requires time to implement within the company. Also, it is important to note that On-Premise can’t be used remotely. 

If you have to choose between these two types of software, you have to know that On-Premise tends to be significantly more expensive than SaaS. On-Premise comes at a higher cost as the company will need to invest in the implementation, setup, and maintenance of this system. 

12 Advantages of SaaS (Software as a Service) For Your Business 

SaaS Advantage #1: A Lot of Cost-Effective Pricing Models

SaaS comes in the form of a subscription, and the cost of such a service is significantly lower. The software provider will take care of the maintenance of the cloud, potential upgrades, and customer service you might need in case of issues. 

Most SaaS services function on plans of monthly subscriptions. However, some providers offer you the option to pay for three months at once, six months, or even a year. Generally, if you choose to cover more months of subscription, you will get a discount on the original price as well. 

SaaS Advantage #2: No Hardware and No Maintenance Costs

hardware

Another great advantage of SaaS is that you don’t need to invest in hardware or any type of maintenance. The maintenance of your software will be managed entirely by the company that provides the SaaS solution.

You will not have to invest in any type of equipment as you can always use the one you already have for accessing the internet. Companies who use SaaS can function without the need for an IT department to manage their IT solutions.

SaaS Advantage #3: Quick Deployment

Implementing your SaaS is faster than any other solution. You will need to choose the subscription you want to use for your company via an internet connection and browser. 

Your SaaS provider will manage the software entirely.  All you will have to do is access it with the login information that is specific to your account. When it comes to On-Premise, you can expect to spend weeks deploying it and completely setting it up. 

SaaS Advantage #4: Effortless Scalability (And Automatic if Need Be)

scalability

Scalability is among the best advantages SaaS has. Despite the number of users you might add to your cloud, the software’s quality will remain impeccable. The provider will upgrade the SaaS application, and you don’t have to worry about any maintenance aspects.  

Unlike On-Premise  software, all features of SaaS are in your ongoing subscription. Plus, you will not have to manage  the scalability of your software as the provider will take care of it. There are also SaaS systems that are scaling themselves automatically, according to the needs the users have.

SaaS Advantage #5: Accessibility From Any Place With The Internet Connection

Thanks to the SaaS software you will be able to work remotely, and still have all the benefits of the application. To use your SaaS software you only need a reliable internet connection and, in most cases, a web browser. Thanks to this advantage, you can work more efficiently and cover different tasks even if you are not at your office.

SaaS Advantage #6: High Compatibility With All Devices 

Another advantage of SaaS that increases the productivity of its users is the high compatibility with all kinds of devices. 

Users can access the SaaS solution online from their computer, tablet, or smartphone. Any type of device made to use an internet connection and a web browser can be used for the SaaS login as well. 

SaaS Advantage #7: You Are Protected By A Service Level Agreement

secured

The Service Level Agreement is an important aspect of the IT solution and one of the essential advantages of SaaS. This agreement assures the client that there will be no failures in the system. The SaaS vendor can store the clients’ data in a cloud or in a hybrid way.

SLA is a legal paper, and is important to read it carefully and understand it before you close the contract with your SaaS vendor. The main advantage of this agreement is that it guarantees that there will be no failures with the software and your data is safe. 

SaaS Advantage #8: Automatic Updates Without Your Participation

If you chose a conventional IT solution, the IT department or responsible person in your company will have to make sure the software is updated and synchronized with all the other applications.This will take time and resources that will slow down the productivity of your team. 

But one of the advantages of SaaS is that this will not be your concern anymore. You will not have to update your software manually, because your SaaS provider will do it automatically. All you will receive will be a notification, letting you know that everything is updated and informing you about the potential changes in the software. 

SaaS Advantage #9: Easy Access To The International Markets

international markets

Technology and great internet solutions can offer you the path towards reaching international markets and therefore, developing your business. With the right SaaS solution, you will be able to work with people from other countries by simply offering them access to the software. 

Collaborating with people from other countries offers you the priceless opportunity to grow in different markets. And you can do all that without opening a physical office. This is one of the best advantages of SaaS for small businesses and startups that want to expand in different markets, but they struggle to put together the resources to do that. 

SaaS Advantage #10: High Level Of Security

Security is crucial when you trust a third party with the internal data of your business. In terms of security, the advantages of SaaS include storing your data in several data centers for its safety. With such a system, you can count on the fact that there is always a backup for your business’s data, and you don’t risk storing it on the SaaS cloud. 

SaaS Advantage #11: Protection From Piracy

Virtual piracy can put the data of your company in danger if you use IT software that doesn’t come with strong protection against such practices. However, SaaS is the type of solution that offers increased protection against piracy. 

You will need to invest in a SaaS solution that uses a proper license. It is important to have a license that offers you protection over the entire software, along with your login information that will also keep your data safe. 

On top of that, the SaaS provider will make sure the cloud is secure. 

SaaS Advantage #12: Bunch Of Additional Convenient Opportunities Out Of The Box 

Using a SaaS solution can bring you plenty of additional options that will help you increase the performance of your work even more. These convenient opportunities depend on the type of SaaS solution you choose but they can include backups of your data, sorting your data by using different criteria and analytics. 

How Companies of Different Sizes Can Benefit From the SaaS model

business benefits

The advantages of SaaS are numerous for all types of companies, regardless of their size or activity profile. 

Startups

Startups have important benefits from SaaS that will help them grow and become more profitable. The reduced price of such a cloud solution and the increased scalability are only two of the most important advantages of SaaS for a small company. Furthermore, the automatic upgrades and the opportunity to access new markets make SaaS the best solution on the market. 

Middle-size/growing companies

Growing companies will benefit significantly from the fact that the provider covers the maintenance of the software. Studies show that companies can grow on average by 19.63 % once they start using a cloud solution. 

The fact that the  cloud is administered on the provider’s side is also one of the main advantages of SaaS as it will save time and increase performance within the company. 

Enterprises

When it comes to enterprises, all the advantages of SaaS are equally relevant The security offered by SaaS solutions and the protection against piracy can save an enterprise on various occasions. Also,  accessing the cloud remotely gives everyone within the company the possibility to work from any location.

Challenges of SaaS 

business challenges

Even if the challenges are fewer compared to the advantages of SaaS, it will still be helpful to be aware of them before you decide to invest in such a solution. 

SaaS Challenge #1: Software integration issues 

Since you will be collaborating with a third party to get your SaaS solution, there might be software incompatibilities that you might face. However, even if implementing a SaaS solution could require some changes on your part, in terms of equipment, you will receive all the support you need from the SaaS vendor. You can get a better understanding of the situation if you check the compatibility aspect ahead of time, so you can decide if an alignment is possible. 

SaaS Challenge #2: Less control over the software

While having your SaaS vendor manage the software and its maintenance, some company owners might prefer to have more control over it as well. As a SaaS user, you will have access to all the benefits of the software, but you will not establish its settings and upgrades. However, once you get used to this aspect, and you develop a trustworthy relationship with your SaaS provider, you will not feel like the lack of control is such a challenge. 

Examples of Software as a Service

There are different types of SaaS solutions, and the advantages of SaaS we talked about in this article apply to all of them. 

CRM

hubspot crm

Customer Relationship Management is very popular among small businesses. This software increases sales and improves marketing strategies from the inside of the company. HubSpot is one of the most popular SaaS solutions in this sector.

Example: HubSpot 

ERP

oracle erp

Enterprise Resource Planning SaaS helps you stay on top of your business strategies and the resources you allocate for them. An example of such software is Oracle.

Example: Oracle

Project management SaaS 

Jira board

This type of SaaS will increase the collaboration between the team members of a certain project and will allow you to organize your tasks and efforts better. Jira is such a SaaS solution for increased project management. 

Example: Jira 

Billing SaaS

Xero SaaS product

You can make payments and track your expenses easier with a billing SaaS software such as Xero. 

Example: Xero

Collaboration SaaS

Miro interface

A Collaboration SaaS such as Miro will help the people within your company communicate better and faster. 

Example: Miro

ECommerce SaaS

ECommerce businesses are growing every year and SaaS solutions are essential for managing such a company. Shopify is the main example of SaaS that can help you build a profitable business from your computer. 

Example: Shopify 

Building SaaS Solutions WIth SumatoSoft 

If you decide to improve your business and overall work performance by using a SaaS solution, SumatoSoft is here to support you during the entire process. We offer services of business Analysis that will bring us to the best type of SaaS you need as well as IT Staff Augmentation services and other services that we developed in the past decade of activity. 

team

Our team strives to improve and satisfy more clients from all over the world, with each project we get involved in. Once you get in touch with us, we will start working together to offer you the most feasible solution for the growth of your business. And we make sure you benefit from all the advantages of SaaS so that you reach success within your niche.  

Conclusion 

The advantages of SaaS that you found in this guide will help you decide if you want to invest in such a cloud solution. But there are plenty of advantages of SaaS that you will discover on your own as soon as you start using such software since some benefits differ from one business to another. Chances are that once you get on track with your SaaS software, you will not be able to give it up. All types of SaaS solutions are built precisely to bring your company the performance it needs and take you steps closer to your professional goals.