If you are just starting to understand the concept of SaaS, this blog covers all you need to know about SaaS, its characteristics, benefits & how it assists in business models? Keep on reading to identify your question & learn about it.
What Is SaaS?
Software as a service or SaaS is a software distribution model where a third-party affords host applications and makes them accessible to customers over the Internet. It is one of three main categories of cloud computing, along with platform as a service (PaaS) & infrastructure as a service (IaaS).
SaaS is closely associated with the application service provider or ASP and required delivery models of computing software. SaaS has the same hosted application management model as ASP, where the customer’s software is hosted by the provider and then delivered to the approved end-users through the internet.
What Are The Characteristics Of SaaS?
An easy way to understand the Software as a service or SaaS model is thinking of it as a banking system, ensuring to guard the privacy of each client though providing reliable & secure service on a massive scale. Hence, all users use the same system and technology without perturbing about anyone retrieving their personal information without permission.
The key characteristics of the SaaS model are given below:
1. Easy Customization
It allows each user to easily customize applications that fit his/her business processes without upsetting the common setup. Software as a Service or SaaS is architected in a way that these customizations are unique to each company or user and are well-maintained over upgrades. Which means SaaS providers can make upgrades with less customer-oriented risk and at lower adoption cost.
2. Better Access
It provides improved access to data from any networked device and make it easier to monitor data use and ensure everyone sees the same information at a time.
3. Multitenant Architecture
It has multitenant architecture where all users and applications share a single, common organization and maintaining an encrypted database. As SaaS sellers & clients are on the same infrastructure, sellers can modernize more rapidly and save the treasured development time.
4. Separation of concerns.
SaaS driven software is bound to provide separate access layers for different user-types, which is an integral part to ensure ease in system’s scalability and future upgradation.
What are the Benefits of SaaS model?
SaaS is considered as the most successful branch in the IT market. Forrester Research analysts predicted that the average market value growth at 56.2% annually and will rapidly grow at a speed of 18.9% per year. It offers many benefits & a few of them are given below;
1. Lower costs
It usually resides in a shared or multitenant atmosphere where the hardware and software license costs are lower as comparing with any parallel traditional model.
Its maintenance cost is quite low as well because the SaaS provider owns the infrastructure and split among all customers that use the particular solution.
2. Quick to Install
With SaaS solutions, you need a web browser and internet access only for installation/access because SaaS solutions don’t need any software to be installed prior to an access. While traditional software require some serious time at worst to set-up or install,
3. Unified & automatic Upgrades
Your SaaS provider manages the software updates and promotions for you, reducing the need and time to install or download bits. When you buy licensed software and install it on your computer, you are required to update it progressively. Whereas all SaaS updates are automated and deployed & you don’t need to download and install any patches for your applications because it is automatically done for you by the vendor.
4. Backups and Data Recovery
If you’ve used traditional software, you must be aware of the costly automated solution & the process of backing up your data. SaaS solutions eliminate this task by instigating automatic backups without user involvement consequently ensuring the reliability of your data and less headache.
5. Work Everywhere
As long as you have an internet connection, you can access SaaS solutions from anywhere in the world. Users can access their data and work proficiently from everywhere, this makes life easier for home-workers or those people that work thru multiple sites.
6. Long Term Customer Relationship
This last point is the most significant. You can contrast this with traditional software sellers who make the bulk of their profit on the initial software license sales and have a comparatively small enduring support fee. They want you to buy the license and not certainly focusing on retaining customers for long-term.
Whereas, SaaS works completely opposite to traditional software, it focuses more on long term customer relationship rather than focusing on selling license by offering recurring small and affordable fee.
What are the Benefits of the SaaS Business Model?
It helps your customers to become insanely devoted to your product especially if your SaaS product represents something integral to their businesses. Check out the four advantages of choosing SaaS for your business model.
Affordable & low prices
One of the biggest advantages of SaaS in the business model is cost-effectiveness. When you are working on creating a piece of software that user needs to install, you worry about associating multiple OPs and devices. You are required to provide customer support to your clients to solve their troubleshooting issues. But with the SaaS, you only need to work on supporting different web browsers across platforms without worrying about any local device problems.
Easy usage for customers
Having a SaaS in the business model, all customers have to log in, where they’re delivered with onboarding, best rehearses and samples instantly. Moreover, there is no complex software to install and work on, which allows them to use the application right away.
Also, it makes it easier for your business to provide free trials. Free trials play a vital role by eliminating the risk for the buyer. They can try out your trials before they buy. Once their free trial is over and they know personally how great your application is, & sign up for a paid plan.
Another big advantage is the recurring proceeds and the solidity it brings. With countless business models, companies need to continuously focus on attracting new clients, which is costly and laborious. But if you’ve SaaS, rather than having clients pay a former fee for your software, they pay a monthly fee, making it much easier to forecast your monthly and yearly proceeds.
With existing customers providing you with recurring proceeds, you can freely work on growing your business without worrying.
Updates and Up-gradation
With SaaS, updates and new features can be effortlessly added and accessible to users immediately. It allows upgrades and new up gradations several times a day according to client’s need.
There’s so much more SaaS has to offer & help you improve your business model. These benefits are not only for the company but also for its users and clients. Whether you are thinking to start a SaaS business model or are to replace your traditional software, keep the benefits of SaaS in mind.
Connect to STATUS 200
Contact us today for easy and quick development of Software as a service or SaaS business models to give your business a boost & offer more benefits to the users. As stated above, it is cost-effective & offers automatic updates & up-gradation by reducing time, development cost & saving you money. STATUS 200 will provide you with quality SaaS business modeling by helping you with its expert team that can offer promising results.