The SaaS business model has been steadily gaining in popularity over traditional software solutions. As business environments evolve rapidly, especially in the post-Covid world, more organizations are opting for the Software as a Service model over installing software on-premise. There are several benefits to choosing the SaaS model and here we will explore some of them.
What is SaaS?
SaaS is a software licensing and delivery model where the software is centrally hosted. It is also sometimes known as ‘on-demand’ software and it has become a very popular delivery model for a variety of business applications and functions such as enterprise resource management, content management, accounting, to name just a few.
SaaS adoption by companies is growing at a robust pace. Research shows that 80 per cent of companies already used SaaS in their applications. Initially, SaaS was popular with start-ups but now the user base has grown to include enterprises of all sizes as digital transformation is fast becoming a priority.
Benefits of SaaS
The SaaS business model is extremely cost-effective as compared on on-premises solutions. Companies would need to invest heavily in software and server infrastructure to support and maintain their business applications which were developed on-site. SaaS solutions are hosted centrally, and businesses can pay according to their usage, which cuts costs significantly. The licensing model gives companies access to the best and latest software features without having to invest further in upgrades.
Scalability & flexibility
Saas solutions enable businesses to rapidly scale up as per demand. The pay-as-you-go model helps businesses respond faster to market fluctuations as they can upgrade their usage plans or go in for lower-tier plans per demand. Further, SaaS solutions are hosted on cloud environments that are not only scalable but also have integration with other SaaS offerings.
Instant updates & improved security
SaaS providers upgrade their solutions regularly and make it available for customers. Costs of upgrades and new releases are much lower than with the traditional model which requires customers to buy the upgraded version and install. With SaaS solutions, costs are distributed across all users.
Similarly, SaaS providers maintain cybersecurity protocols for their applications. Users, therefore, do not have to invest further insecurity to manage risks on their business applications.
Ease of Use
SaaS solutions are easy to use. For example, with a SaaS HR solution, onboarding new employees can be a breeze. Employees can log in, add relevant information like tax investments, review their leaves, check timetables, punch attendance if working remotely, view and print payslips and much more with ease. The same solution enables HR to view employee details, leave requests, onboarding formalities, automate disbursement of salaries and more. SaaS solutions also help users develop proof-concepts faster and test new features in advance.
SaaS solutions are designed to help businesses respond rapidly to changes in the market, without undergoing the hassles of investing in new software infrastructure. Companies report faster releases, ease of use, lowered costs, and optimal results with the use of SaaS solutions.