Technology is revolutionizing businesses in a variety of ways. In today’s digital age, organizations of every size and industry continually search for strategies to optimize productivity and effectiveness while lowering costs. Here, SaaS apps are relevant. Businesses can access software programs online thanks to the cloud-based delivery model known as Software as a Service (SaaS).
SaaS apps have become more and more popular due to their many benefits, including cost savings, accessibility, portability, scalability, and automatic upgrades and maintenance. The fundamental function of SaaS is to allow users to establish cloud-based connectivity amongst not just their colleagues but also their own devices, providing a seamless way to execute both personal as well as professional tasks.
In a pre-pandemic survey with 1,283 respondents, 88% reported using cloud services in some capacity. Modern organizations estimate that 70% of their programs are SaaS-based, and the percentage is expected to rise by 2025 to almost 85%. Companies that use SaaS are more efficient and productive. They can bring new offerings 20% to 40% faster to the market.
In order to understand what SaaS services are, how they work, and the benefits they offer to organizations, here are some relevant details:
How does SaaS work?
Users are given virtual permission to use software applications by SaaS apps. Instead of installing it locally, users can use software via a mobile app or internet browser. SaaS providers control the application, infrastructure, and encryption while users incur an ongoing fee to access the service.
For instance, businesses that lease equipment and supplies must adhere to the FASB lease accounting standard ASC 842. An up-to-date and modern ASC 842 lease accounting software can offer solutions for relevant compliance issues through a cloud-based infrastructure. Remote access to SaaS software allows more streamlined operations for relevant businesses.
- SaaS applications like Microsoft 365 are hosted on cloud services, which means that they can be accessed from anywhere around the world.
- These programs allow remote work to be a better, more seamless experience and since most companies are shifting towards this operational model, SaaS is becoming highly favorable.
- Prominent third-party service providers like Google and Microsoft offer SaaS software. These companies periodically maintain and update these applications so a business doesn’t have to.
- There is an annual or monthly subscription fee to use this software.
- It is simple to scale these applications when the business grows, and users can be easily removed or added as and when required.
How to find the right SaaS applications for your company?
Here are the factors that you need to look for when deciding on a SaaS application for your business:
- Examine your company’s requirements: Identify the areas of your business where SaaS applications can help. Some examples include project management, marketing, human resource management, accounting, and customer relationship management.
- Look into your options: Thoroughly investigate the SaaS applications that are suitable for your business. Look for demos, case studies, and reviews to assess their features and functionalities.
- Take customization and scalability into account: Choose a SaaS company that can expand with your business and has customization options to match your unique requirements.
- Analyze compliance frameworks: Search for suppliers of SaaS services who prioritize compliance and security with industry rules to protect your company’s data.
- Test first, then decide: Take advantage of the free trials and demos many SaaS suppliers offer to try the program before deciding to subscribe.
- Evaluate pricing and available payment methods: Choose a SaaS supplier with adaptable payment choices and a pricing structure according to your spending limits and usage.
Benefits of SaaS programs
SaaS applications offer several benefits to businesses. Cloud-based infrastructures have been commonly used in business ecosystems for many years. However, with SaaS, these capabilities have expanded substantially. In some cases, they have significantly transformed the fundamentals of business operations by overhauling entire processes.
1. Triggered the shift toward cloud-based systems
One of the biggest revolutions SaaS has brought to the business ecosystem is a pertinent shift toward cloud-based solutions. Where many businesses may not have been using cloud servers before, with the introduction of SaaS, they have accepted the additional flexibility and convenience by deciding to buy subscriptions for these applications. Through SaaS programs, companies around the world have a better infrastructure in place to implement remote work as that has also become a norm.
2. Scalability of business
Another one of the major ways in which SaaS has transformed conventional businesses is through its ease of scalability. Adding and removing users can become a major hassle for companies that use custom software. It involves a team of developers revoking access for that particular individual or adding their credentials to the system, a process that can take hours.
On the other hand, SaaS accounts can be created within minutes, and the relevant access details can be shared promptly to allow a new employee to begin working. Similarly, when removing an employee who has left the company, the procedure to delete an account is simple. So, as your business grows and the team size increases, SaaS can easily grow with you.
3. Reduced costs
Although most SaaS software is generalized in the sense that they offer only a limited number of features like storage, file management, and sharing. They are still inexpensive compared to personalized solutions. Having completely custom software built for your business and then hiring the services of a management company or building an in-house team can cost substantially more. With SaaS, there are no maintenance expenses. The only cost that a business incurs is the subscription fee.
4. Efficient installation and low startup time
Unlike proper software installed on every device your employees use for work, SaaS programs can be accessed simply through a web browser anywhere in the world. There is no time wasted in the tedious process of installation. All you need to do is share the login credentials with your team and they can continue using the SaaS software from wherever they want. It is effortless and seamless all at the same time.
SaaS has been a game changer for businesses of all shapes and sizes worldwide. Their benefits of cloud-based operations, minimal upfront and setting up costs, easy scalability, and backing from trusted companies like Microsoft are enough to convince most companies to adopt them.