If Microsoft and Adobe have done it, surely your business should too?
What is SaaS? Software-as-a-Service is a brilliant model for any sized business to employ. It is also practical for customers. In contrast to previous software offerings, SaaS is a subscription-based service that delivers applications over the internet and this is how the whole process of SaaS enterprise contracts is improved for everyone, including your customers.
7 Advantages Of The SaaS Business Model
As the tech wheels turn, software-as-a-service (SaaS) is becoming something of a no-brainer for businesses and end-users. It’s now easier than ever to enjoy the advantages of SaaS business models thanks to the cloud and ever-increasing internet connectivity speeds.
No matter your industry, if the largest and most successful businesses think that this is a good idea, then it’s well worth exploring.
If you’ve been on the fence about SaaS benefits, we’ve got some fascinating insights for you.
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Understanding the SaaS Business Model
What is SaaS? Software-as-a-Service is a brilliant model for any sized business to employ. It is also practical for customers. In contrast to previous software offerings, SaaS is a subscription-based service that delivers applications over the internet.
Advantages of SaaS Business
Remember when you had to buy a disk and install a piece of software on your computer? You would then have to register and configure it. You may have to troubleshoot problems and likely upgrade in a few months.
Saas has transformed the way users experience new technology and are proving a brilliant way forward.
1. Reduced Costs
Whether you’re creating software for businesses, or you’re starting your own company and require certain applications, SaaS is your best bet.
One of the headaches of standard software from yesteryear is that developers had to concern themselves with ensuring their product works on multiple devices and operating systems. Users would install the software themselves but would also expect service and support when things went wrong. This required a lot of man-hours and non-billable time.
SaaS eliminates this problem by allowing developers to create a product that works on various browsers and deploy it from the cloud. This system is faster, cheaper, and less labor-intensive than ever.
Start-ups and small businesses benefit by having access to the same software as their corporate competition. This, minus the significant costs that used to accompany them. Some licensing fees for certain software products were prohibitively expensive and way outside the budget of many smaller enterprises.
2. Recurring Revenue
A passive income is the dream of every business owner ever and this is one of the key advantages here. A SaaS business model benefits your business as it offers recurring revenue and the welcome element of financial stability.
The cost and effort required to drive new sales are mitigated by offering a well-priced subscription-based product. Customers are better able to afford your product minus a large initial outlay. Thereafter, your business enjoys a steady stream of low-ticket, high-volume revenue. That sounds like a win for both sides.
This factor increases the saleability of your company should you want to go that route. Recurring revenue is a very attractive feature to a potential buyer.
The frustration experienced by most of us when trying to get a new program to install and work properly knew no bounds. Not everyone is tech-savvy. So, if an application was tricky to install or use then people started to get frustrated.
SaaS applications, however, remove this issue in its entirety. Simply creating an account and logging in is as difficult as it gets for new users. Onboarding documents, training and tutorials, and best practices are readily available and easy to access. It’s the plug-and-play solution many have been looking for.
This factor also negates the need for users to upgrade their hardware to operate certain software. Why spend money when you don’t have to?
Businesses that make use of SaaS applications find that their team enjoys increased productivity. It removes the issue of downtime associated with crashed programs, scheduled updates, or new installations.
4. Easy to Market
A solid customer base paying small amounts every month is more beneficial than the constant hunt for more customers. SaaS facilitates this by allowing users to trial an application without handing over payment details. This gives them the time and accessibility that they need to appreciate how awesome the software is.
SaaS tools can be available no matter where customers are in the world, instantly and easily. Once they’ve experienced the benefits they are more likely to stay with it and recommend it to their office team and business peers.
Using a ‘nothing to lose’ marketing strategy without obligation is more likely to put your application in front of potential buyers. No hard sell required. There is no need to get sign-off from management until you can say with certainty that you’ve used it, and you loved it. Add to this, the fact that licenses are only required for those who use the software which may not result in a high monthly spend.
5. Constant Updates
We are all acutely aware that success in the fast-paced world of technology hinges on staying up to date with what customers want. Smart SaaS teams can gain a tactical advantage by leveraging their ability to constantly update and add new features to their software. As these changes are made and deployed from the cloud, there is no requirement for on-premise access to devices.
Users benefit from these updates immediately without having to call in IT making it a frictionless process. These updated features can easily be highlighted to SaaS customers and a quick tutorial uploaded should they need it.
For developers, the world is their playground. Their service is available to anyone, no matter where they are. That also means that, as a user, you can bank on 24/7 uptime and immediate online assistance if you need help.
Now that’s service.
The versatility and scalability offered by the SaaS model make it the perfect solution for multiple industries and sectors. The stringent requirements of ESG (Environmental, Social, and Governance) require accuracy, transparency, and accessibility, to a simple application like Dropbox – SaaS answers the call.
Subscription costs vary depending on metrics such as the number of users, the size of the database, or the number of actions required. This system makes it affordable for smaller businesses with fewer requirements and grants them the flexibility to use the only features they want when they need them.
Scalability is a big deal in today’s economic environment where things can go really well, or really badly in the space of a few days. Either of which can impact a business. Having the option to scale down during tough times or scale up as your team grows is the flexible solution we’ve wanted for the longest time.
In fact, this point was well made early in 2020 when entire teams were sent home to set up a remote office to keep the wheels of commerce in motion. SaaS and other cloud-based applications suddenly become an essential business tool and have since proven their worth in no small way.
7. Easy Roll Out
Software vendors benefit from SaaS. Without the need to visit customer premises to install their product, they can create an MVP (minimum viable product) in the cloud and roll it out to users quickly.
- Updates and changes can be made and deployed as the product gains users, but the ability to get the application into the market as fast as possible is a big deal.
- Free trials are super simple to turn on and off for customers which offers them a taste of the full product with all the bells and whistles.
- Feedback is quick and changes are instant.
- The software can integrate with other user systems for additional benefits.
Are There Any Downsides to SaaS?
SaaS pros and cons are constantly being debated, but what we’re seeing is that the benefits outweigh the potential problems. The main areas of concern when employing SaaS lie in the areas of security, usage limits, and contractual obligations. Staying compliant and ensuring a robust security protocol in your business will negate these matters before they raise their heads.
Enjoy the SaaS Benefits Now
It seems that the many advantages of SaaS business models mean that they are here to stay. The world of business is more connected than ever before, internet speed is faster than ever, and pretty much everything is migrating to the cloud.
When you consider that your business can enjoy the benefits of a piece of software without concerning yourself with its maintenance or upgrades, the advantages become clear. In addition to the reduced costs and the sheer volume of exciting applications now available, this is an exciting space to be involved in.
Stay connected with us for more practical information, innovations, and news in today’s fluid business world.
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