What is Software as a Service (SaaS)

The Software-as-a-Service (SaaS) market was valued at $272.49 billion in 2021. What is SaaS, and why is it such a valuable field? Let’s explore.

Definition of SaaS

Software-as-a-Service is a software licensing model. Software located on external servers is made accessible to users through web browsers. Users can use different features of a SaaS application on a subscription basis. Google Workspace, Netflix, Dropbox, Concur, and Salesforce are some common examples of SaaS applications.

• Instead of making users install the software on their devices, SaaS applications allow users to use applications over the Internet.
• Connect with the application (e.g., Uber) via the Internet and log into the system with a unique username and password.
• Then, start using different features of the SaaS either for free (e.g., Gmail) or for subscription fees (e.g., Netflix).

For software developers, SaaS tools are applications that are easy to implement, update, and debug. That’s why it has countless business applications, including –

• File sharing
• Email
• Calendars
• Social media
• Customer retention management

More importantly, SaaS tools are cheap for the end-users. Why purchase multiple software licenses for different devices when you can access your SaaS from any device with the Internet? The speed and ease of service delivery make SaaS applications extremely helpful for users and lucrative for companies.

The Role of Cloud Computing in the Rise of Software-as-a-Service

In the past, even large-scale companies could release limited numbers of software products every year. That’s because updating the software products was a time-consuming process. Users had to download or purchase newer versions of their software tools on a frequent basis.

Even when software updates were made available for easy downloads via the Internet, this model wasn’t sustainable for the users. Users had to install copies of the software tools that they wanted to use on their devices. With SaaS applications -

• Users don’t need to install any software on their devices
• Users don’t need to update their software tools manually
• Users simply need to log in to their SaaS applications via their web browsers to access the latest features. This convenience was made possible by cloud-based computing technology.

Cloud-based computing is the process of delivering technology services via the Internet. From server storage to networking – a variety of technology services can be delivered via “Cloud systems.” Developers looking to distribute their software solutions to large audiences can store their SaaS tools on different Cloud Systems.

They can even make updates to their SaaS applications on the Cloud. Whenever users access the SaaS apps or tools – they receive the latest versions. SaaS technology gives organizations the ability to develop and improve new technologies on a constant basis. These drastic advances in production efficiency are compelling all industries to adopt SaaS technology.

The Benefits of SaaS: For Software Vendors and Users

Your SaaS business is guaranteed to thrive if it attracts a flourishing online community of customers. Here are some other perks of deploying SaaS products –

Increased Trust in Brand

SaaS offers a range of benefits. Unlike traditional software tools, SaaS tools don’t live on specific company servers. Companies don’t have to constantly buy new hardware to add more features or dimensions to their SaaS applications. They can simply buy extra cloud storage for low prices.

Hence, the upfront costs of implementing, updating, and debugging SaaS applications are very low. Companies can use the resources they save by deploying SaaS tools on customer retention. Users already get to save money by using SaaS tools and not purchasing multiple software licenses for multiple computers.

Make their experiences with your brand even better by adding customer-friendly features to your SaaS applications. As brands steer away from spending heavily on software development and licensing, they become more customer-friendly. Growing an online community of regular SaaS users also helps them boost their brand’s credibility.

Low Cost of Distribution

In the past, the software delivery process was physical. Developers had to ask users to install and store their programs on different devices. The SaaS delivery method is much simpler. Developers don’t need to use their on-premises hardware to allow users access to their products and resources.

They can use the Cloud, and their users can use the Internet to connect and build value. Since users are accessing the software via digital, cloud-based infrastructure, releasing updates is as easy as upgrading the program locally. Users simply need to download the “latest updates” of the software via the Internet.

Some web-based SaaS tools don’t even ask users to do that – they simply host the updated software centrally. Either way, this method of delivering software solutions (and regular updates) to users is much quicker and cheaper for developers.

Accessibility

To access a SaaS, you only need connectivity to the Internet. Hence, users can access SaaS tools/deployments from any location - provided that their devices are compatible with the SaaS. When users can operate software tools remotely, their experiences are better. They’re likelier to pay small fees for accessing the features of their vendor’s SaaS.

Plus, most SaaS tools are available on pay-as-you-go models. Users don’t need to install any hardware or pay for features they don’t want. Download the SaaS or access it via your web browser. Pay if you like the features or don’t. Overall, users have far more control over these software solutions compared to traditional software licensing models.

Boost Business Efficiency

Many traditional software tools have migrated to the SaaS model. Many of these are ERP tools (Enterprise Resource Planning). An ERP SaaS is much more collaboration-friendly than a traditional ERP tool. That’s because employees from various locations, departments, etc., can access these tools from remote locations, irrespective of their devices.

Some common ERP SaaS applications include -

• Private email services for authorized company members.
• Automating sign-up for accessing company data.
• Sharing and managing documents with peers on a single platform.
• Sharing company dashboards, calendars, etc., to improve the company’s scheduling and task assignment capabilities.

Ultimately, investing in SaaS ventures gives brands the ability to grow their own online communities. Users reward the brands for their convenient SaaS-based solutions to specific problems with loyalty and data. To learn more about SaaS development, get in touch with Webtales IT Solutions for a free consultation. Our team of digital developers will guide you further!