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How SaaS Adoption Will be Beneficial for Businesses in 2021?

How SaaS Adoption Will be Beneficial for Businesses in 2021?

Software has somewhat become a commodity these days; we depend on it to fulfill many of our routine activities like booking tickets, ordering essentials, watching movies, conducting money transactions, and so on. Similarly, businesses also rely on a variety of software to manage important operations like inventory tracking, sales forecasting, maintaining customer profiles, analyzing data and even for remote working. 

This is where the approach of SaaS or Software as a Service holds great significance. With more and more companies moving their operations to the cloud, the concept of SaaS is rapidly gaining momentum; it’s expected that the global SaaS market will reach $623 billion by 2023.

This article aims to shed light on the different features of the SaaS model and the various benefits that companies will enjoy from adopting it. 

So, let’s dive in.

What is SaaS Model? 

SaaS is a type of software licensing and delivery paradigm that enables users to access a particular software by paying a fixed recurring fee, instead of buying the software through a one-time payment. In short, SaaS is based on a subscription format in which users are charged mostly on a monthly or yearly basis.

They don’t have to download or install the software in their computers; it is centrally deployed on the cloud server of the service vendor and can be easily accessed via a standard web browser.

The most familiar example of a SaaS app would be Netflix. Based on the number of features offered, users can subscribe to the plans of their choice to view video content. 

Following are some of the main types of industry SaaS applications:

  • Customer Relationship Management (CRM) Software – Salesforce, HubSpot, Zendesk
  • Enterprise Resource Planning (ERP) Software – Microsoft Dynamics, SAP, Oracle  
  • Instant Messaging Apps – Slack
  • Project Management Software – Jira, Trello
  • Ecommerce Apps – Shopify
  • Accounting Software – QuickBooks, Xero

Key Advantages of Adopting SaaS over Traditional Software

SaaS is characterised by its ease of use, reliability, scalability, and most importantly, cost-efficiency, which is a major plus point for startups and small, mid-size businesses. There are no huge upfront fees or any additional charges for maintenance or updates as compared to traditional software solutions.

saas trends 2018-2013

Image Credits: FinancesOnline


1.Flexible Pricing

SaaS is highly flexible; you get to choose from 4-5 pricing models (like freemium, 7-day free trial, etc.) that best suits your requirements. And, you can also discontinue anytime, without paying any extra fee.

Traditional software, on the other hand, lacks this kind of flexibility; even if you want to use it just once, there’s only a single  choice – buy a complete package. 

2. No Set Up Required

There are no separate configurations or any extra resources needed for a SaaS app. A fairly good speed internet connection is all that is required for using the cloud-hosted software.

But, traditional software requires specific infrastructure and proper planning to set it up and running. This is time consuming as well as expensive.

3. Accessibility Across Multiple Devices 

Since SaaS apps operate in the cloud environment, they can be seamlessly accessed not only in desktops and laptops, but also in smartphones and tablets; at any time.

Traditional software is usually installed in the office computer; that means, an employee can use it only at the workplace. 

4. On-demand Scalability

SaaS apps can be upscaled (downscaling is also possible) based on demand, and this can be done by upgrading to a higher subscription plan. Moreover, most SaaS apps also allow third-party platform integration.

Scaling traditional software solutions is somewhat a costly affair. You need to purchase or rent additional IT infrastructure in order to increase storage space or to get improved features.

5. No Need of Manual Updates

SaaS users don’t have to waste their time downloading updates and running it manually. The SaaS vendor automatically updates the software in their cloud server, and the user gets instant access to the updated version. Maintenance and bug fixes are also done by the vendor.

Updating traditional software is a messy process; you need to buy a new version package and install it manually. For this, you may need extra resources and manpower.

6. Choice of Collaboration

Due to its multitenant architecture, SaaS can accommodate multiple users at a time, thereby facilitating remote collaboration. Many SaaS-based project management and collaboration tools like Atlassian Jira, Asana, and videoconferencing apps like Zoom, help local and distributed teams to communicate and share work documents with each other in real-time.

Such a scenario is almost absent in traditional software; except for some project planning features that work on a standalone basis.

Wrapping Up

SaaS apps have carved a niche among enterprise solutions and this popularity is further supplemented by cloud services that offer great scalability and reliability. Businesses can derive maximum returns out of the SaaS model once it is correctly implemented.

So, if you are planning to migrate your existing app to the SaaS model, or want support for developing a SaaS app, feel free to approach the best web app development company.

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Maria Lawrence
Assoc. Vice President - Marketing, Neuberg Diagnostics, South Africa

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