Rapid evolution within the modern tech industry has birthed us Software as a Service (SaaS) solutions as a revolutionary business model.
It continues to outperform and offers a variety of conveniences, so it’s quickly becoming the go-to model, leaving previous concepts in its shadow.
SaaS sprawl has seen a 48% increase and is predicted to grow by 214% by 2034. It isn’t difficult to see why once you stop to consider the benefits it brings. Today we are exploring the top reasons that make SaaS the best for business practices.
The SaaS Business Model Explained
Before we present the nine reasons why SaaS is the best business model to consider, here’s a little overview of what it is and how it differs from its traditional counterpart.
What is SaaS, and How Does it Differ from Other Models?
Software as a Service is a software delivery model accessed through a web browser such as Google Workspace and Microsoft 365.
Unlike traditional software of days gone by, SaaS software applications are hosted totally online, so there is no need to install them on your device.
The applications can handle and simplify a multitude of tasks covering accounting, customer relations, project management, and even HR processes.
They provide centralized management and are constantly updated, so there is no need for in-house maintenance, which works well for companies that might not have an IT department to rely on.
They are also regularly updated with the latest security measures, providing peace of mind.
Users can spread their licensing payments as they subscribe and pay on a monthly or annual basis.
The subscription model means that initial business investments are cheaper and more flexible, allowing you to scale up and expand as and when you can afford it, but those aren’t the only benefits, as this article will explore.
9 Reasons to Consider SaaS Business Model
The SaaS model offers many advantages over traditional ones, which is why we see it proliferate heavily, replacing its predecessors. Here are the nine reasons why SaaS is coming up trumps:
1. Unmatched Flexibility
First, one of the reasons to consider SaaS business model is that with SaaS, your business can add and remove features as they evolve, meaning the solutions provided will grow in unison with the business.
Previously, to compete in the business environment radical evolution required a huge overhaul which is both costly and disruptive. SaaS models offer unrivalled flexibility allowing a company to adapt its IT infrastructure and expand its services on the fly.
Most offer different pricing tiers to suit a variety of budgets, enabling businesses to start small, address their current needs, and upgrade later to a more comprehensive plan.
2. Rapidly Market-Ready
SaaS models eliminate software and hardware procurement, significantly reducing the time frames of business disruption when transitioning from one software to another.
Applications are hosted externally and readily available for immediate use. No extensive configuration is needed, meaning new solutions will be accessible as soon as the budget allows.
Time-to-market frames are rapid, enabling companies to better leverage market opportunities, providing new products, tools, and services.
Accessing the latest features boosts productivity and means that businesses can keep up with customer demands giving a company a superior competitive edge.
3. Economically Practical
We have lightly hinted at the economic benefits, but to reiterate, the pay-as-you-go nature of SaaS models significantly lowers upfront investments. Budgeting becomes far easier to manage as costs are spread over time, allowing you to predict future expenses.
In addition to investments, SaaS reduces unnecessary expenditure and helps to facilitate business-savvy resource allocation. If you are only paying for features that you currently need and use, then there is no waste.
Some traditional software companies have been held at ransom with hidden maintenance and update costs or external IT support fees. The continually updating nature of the SaaS model provides these aspects within its subscription, reducing unforeseen labor and operational costs.
4. Facilitates Collaborative Access
Remote working is a modern-day business necessity for many. Having your software applications remotely hosted makes remotely collaborating a piece of cake.
By being accessible from any device with an internet connection, SaaS paves the way for seamless collaboration without ridiculous expenditure.
The shared data aspects of SaaS applications are also provided in real-time, meaning teams can work together regardless of where they are globally.
Workplace productivity is improved because they also feature many integrated collaborative tools for communication with document sharing, chat, and video conference options streamlining workflow very effectively.
5. Innovative Continual Improvements
Innovation drives SaaS development and user demands by incorporating feedback directly. The feedback keeps its functionality on point with industry trends.
Software applications provided by the SaS model are consistently updated with bug-fixing patches and improvements. They are regularly upgraded with new features that become automatically available to existing users.
The tech they use will never become redundant, so you won’t be forking out for any new software. This prevents smaller companies from suffering when new services become sought after and they are still operating by old means.
SaaS improvements and advancements enable them to remain relevant and competitive regardless of fiscal constraints.
6. Streamlines IT Management and Support
IT infrastructure can be complex for big businesses and small companies may struggle to have a comprehensive IT department in the first place. SaaS simplifies all business processes eliminating the need for daily maintenance, manual updates, and back-ups. This streamlining extends beyond IT processes. For financial management, businesses can benefit from online business banking solutions that align with the flexibility of SaaS models. Platforms like Novo provide a user-friendly online business bank account that integrates with other digital tools, enhancing overall operational efficiency.
It reduces internal IT workloads tremendously meaning it workers can focus better and also innovate within the company. This offloads a considerable amount of work from internal IT teams, allowing them to focus on more strategic initiatives rather than routine maintenance tasks.
Most SaaS solution have their own support and customer service too, ideal for companies and start-ups without in-house support established.
7. Easily Integrated
SaaS is developed with current platforms in mind and alongside other emerging software with forethought when it comes to future progression and trends.
This gives it the benefit of seamless integration and helps automate the majority of business operations, improving work productivity.
Many already cover the most popular interfaces and platforms, such as social media staples and the most commonly used e-commerce systems.
In addition to that, they are easily upgradable and can be developed rapidly to integrate the next big thing, and they become a no-brain solution.
By integrating the APIs and other third-party services that your company needs you can tailor an optimally functioning personal business eco-system that covers all needs cohesively.
8. Globally Accessible
The real-time internet-accessed features aren’t just useful for staff communication and remote work. They also provide the means to operate directly with clients and customers on a global scale.
Many SaaS applications provide multi-language and currency support which can take away the headache of international business.
Unrestricted accessibility empowers businesses to expand to international markets and level the competitive playing field.
9. Built-in Protection
SaaS models provide centralized security measures that dramatically reduce costs for businesses.
Most have encryption as standard and are regularly audited, monitored, updated, and patched helping to protect your data and defend against cyber threats. Some have multi-factor authentication and all comply with GDPR and HIPAA regulations.
The security measures in place by hosts prevent sensitive data from getting into the wrong hands, providing safe off-location storage.
This can be strengthened and supported with a VPN Google extension or similar private networks, depending on your preferred browser or search engine provider.
The Crux of SaaS Benefits
Shifting how you use the software in the business to the SaaS model is a flexibly scalable solution with cost-effective benefits.
The opportunity to subscribe and expand means it caters to a range of business sizes and expands with your services and needs.
The SaaS business model makes collaboration a doddle with real-time features and provides the opportunity for global operation and expansion.
The workflow is streamlined and more predictably manageable, and security measures are integrated with frequent updates that can be supported with VPN access.
SaaS models are constantly evolving alongside technological industries to stay cutting-edge and will continue to spearhead and shape the future.
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