Ahrefs, Canva, Dropbox, Slack, Trello, Zapier – what do these popular software that facilitate business development in various fields in almost every industry have in common? These are applications in the SaaS model (Software as a Service), i.e. cloud software that is made available to users as services. What are the benefits of SaaS for companies?
SaaS – what is it?
SaaS (Software as a Service) is cloud software hosted and made available by a provider via a network to customers who do not have to install any files on a server, desktop computer or mobile devices. Cloud software is accessible from a web browser. Although the SaaS business model may provide for the development of desktop and mobile applications, they are not mandatory.
What does the term SaaS mean?
SaaS is an abbreviation for Software as a Service. In this case, the provider does not charge a one-time fee for the software, which is sold as a finished product with a lifetime license, but provides the application in exchange for recurring fees in a subscription or subscription model.
How does the SaaS model work?
The SaaS model is based on a subscription or subscription fee. How do these payment methods differ?
A subscription obliges the cloud software user to pay regular fees, usually monthly, during the term of the contract. If the company wants to terminate it early, it must comply with the provisions regarding the notice period.
A subscription provides greater SaaS flexibility for customers. Thanks to it, they can cancel the software at any time without incurring any additional costs, such as contractual penalties.
The SaaS business model may also provide:
- a free trial period with full or limited access to functionality for new customers,
- free access to several software functions for all users,
- a discount for paying at least a year’s subscription in advance,
- preferential conditions for the most extensive packages,
- a software update guarantee for all customers,
- charging fees only for the actual use of the service, not for maintaining access,
- free technical support and training of the company’s employees in the use of the software.
Why do companies choose SaaS solutions? Benefits for users of cloud software
SaaS solutions allow entrepreneurs to use advanced technologies that are unattainable to design from scratch due to limited budget and limited IT infrastructure within the company. Moreover, communicating that the organization uses specialized software can attract both customers and potential candidates for employees who care about access to modern technology.
In addition, SaaS software does not require large financial outlays. Users avoid a one-time large expense that could shake the financial liquidity of the organization, especially a small company.
Advantages of the cloud model for companies
Why is the cloud model more flexible for companies?
The cloud model is recommended primarily for distributed organizations that employ remote and hybrid employees even around the world. Cloud software is available from anywhere, at any time. It works well in asynchronous work due to different time zones. In addition, the subscription or subscription model allows for immediate expansion of the package.
How does SaaS reduce the operating costs of companies?
SaaS means that companies do not have to, among other things, invest in the development of IT infrastructure, increase employment and support themselves with external specialists under B2B contracts to develop their own software. Importantly, cloud models facilitate the automation of time-consuming, repetitive tasks, so they reduce the current burden on the client’s employees, who can focus on strategic challenges.
If cloud software updates concern changes in regulations, the SaaS provider relieves customers of costly modifications, e.g. supplementing electronic document flow with new functions. The software developer not only implements the necessary changes, but also sends information to users as part of theoretical and practical training.
Does SaaS support business scalability?
Yes, SaaS facilitates business scalability, because cloud software developers guarantee that the terms of service will be adjusted to the changing needs of the company. Regardless of whether you intend to hire new employees, expand your product and service offering, or perhaps enter a foreign market, a SaaS provider will certainly offer you the right solution. However, remember that some cases require consultation and preparation of an individual offer that goes beyond generally available packages.
How does the cloud model increase data security in companies?
SaaS solution providers are obliged to guarantee effective protection of customer data – especially against cyber threats from criminals. The software developer should be distinguished by certification confirming that it meets international cloud security management standards, e.g. ISO/IEC 27017 and ISO/IEC 27018. Also pay attention to whether the provider provides a security policy on the website. The document should discuss, among other things, creating backups, incident response protocols and audits for gaps in virtual protection.
SaaS FAQ
What companies can use SaaS solutions?
SaaS solutions are tailored to the capabilities and needs of each organization – from a sole proprietorship to an international corporation. Cloud software is usually available in 3-5 packages that differ in scope and cost, although providers also prepare individual offers and are open to negotiations.
Is SaaS suitable for small businesses?
Yes, because micro and small businesses need to optimize the costs of doing business, so they cannot afford expensive IT infrastructure expansion. SaaS software for small businesses allows them to build a competitive advantage without having to invest hundreds of thousands of złoty in technology. All you need to do is pay a subscription or subscription fee – from a few dozen dollars, euros or złoty per month, depending on the provider and service.
What are some examples of SaaS software worth knowing?
Popular cloud software makes it easier to:
- organize work (Asana, Trello),
- sales processes (Pipedrive),
- run an online store (Shoper, Shopify),
- communicate between employees (Slack, Microsoft Teams),
- manage human resources (HRnest, HRappka),
- automation (SALESmanago),
- use an email box (Microsoft Outlook, Mailbird),
- implement a marketing strategy (Ahrefs, Google Analytics, HubSpot).
What are the disadvantages of the SaaS model?
The main disadvantages of the SaaS solution are:
- lack of access to the service in the event of a loss of network connection,
- risk of unfavorable changes in price lists and packages for customers,
- high long-term costs (the sum of regular fees may exceed the cost of purchasing a lifetime license many times over),
- lack of compatibility of cloud software with other applications used in the company,
- threat of confidential data leakage due to cybercriminal attacks,
- less flexibility compared to software in the OpenSource model, which allows for free modification of the source code,
- negative impact of errors on the part of the supplier, e.g. temporary unavailability of the online store, on the software user’s customers and the company’s revenues.
