Software as a service (SaaS) has become the most popular way for small businesses to operate. It has many benefits, and one of the most important is its affordability.
Time is money is crucial for any business, and this applies very well with SaaS business models: the less time you spend on establishing your system, updating and running it, or working with software problems (e.g., data loss) - the more time you have for other business tasks.
What is Software as a Service (SAAS)?
Software as a service (SaaS) is the on-demand delivery of a licensed application to a customer over the Internet. The provider licenses, hosts, and maintains the application at its data center so that customers do not have to invest in software licenses or hardware to use the service. SaaS is occasionally mentioned as "on-demand software" or "on-demand applications."
What does Software as a Service (SAAS) do?
SaaS is a business model where an enterprise licenses or rents an application to customers from a third-party service provider. It typically involves monthly or annual subscriptions. Subscribers can access the software via a web browser interface, through which they can use the online application as long as they are connected to the Internet.
Most companies consider Software as a service (SAAS) for automating business processes and transactions, including customer relationship management, human resource management, accounting, payment processing, invoicing, inventory management, enterprise resource planning (ERP), marketing automation, and web analytics.
Why use SAAS when there are in-house solutions available?
You can certainly develop your software, but the big question is whether you should. It takes years, if not decades, to be proficient in building applications. The problem here is that you would have invested so much time and resources on developing your system when other organizations already have SaaS for their business operations which could save them money, increase productivity and improve customer experience.
Furthermore, online applications are more advanced because they are constantly being developed with new features and functions, so your in-house software is quickly left behind. This means that you would need to keep up with the latest technologies, which can be difficult for small businesses, so it is better to stick with SaaS products instead of building your own.
Affordability of SAAS
The most significant benefit of SaaS is that it's cheaper than in-house solutions. The application provider invests its resources in improving the system through constant updates and customer support, whereas you wouldn't need to worry about any of these costs if you use an online tool instead. Also, the software providers offer different options to choose the most affordable package that meets your needs.
The good thing about SAAS is that you only pay for what you use, so if your business doesn't have a large number of users - there's no need to invest in an expensive package either. Also, the payment system is convenient and flexible: many providers accept payments online while some offer monthly, quarterly and yearly subscriptions.
When is a good time to use Software as a service (SAAS)?
One way of knowing when you should upgrade or change your business operations to a SAAS package is if you feel your current system doesn't offer enough features or there are problems with implementing it. Another sign is when you have too many employees using the software simultaneously, which leads to security issues and system downtimes.
The main idea of SaaS is that everyone in your company gets access to the same data, making your business more efficient. For example, if you have an online project management tool - everyone in the team could use it to share documents and tasks.
Top examples of SAAS
The most popular examples of SaaS include:
Customer relationship management (CRM): Zoho, Salesforce, Sugar CRM, Nimble
Project Management: Trello, Gantter
Collaboration Tools: Box, Dropbox, Google Drive, Slack
Data Visualization Tools: PowerBi, Tableau, Sankey Diagram Generator, Plotly
Finance and accounting tools: Xero, QuickBooks Online, Freshbooks
Human Resources Management: Bitrix24, Workday, PeopleHR
Email marketing tools: MailChimp, ConvertKit, ActiveCampaign
Analytics & Web Intelligence: Google Analytics, Mixpanel, Kissmetrics
The benefits of using SAAS
SAAS has many benefits for businesses of any size. Here are some of the benefits of using SAAS:
Flexibility
With SaaS, everyone gets access to the same data, which means that your business becomes more efficient and organized. You can organize sales, marketing, or project operations with a tool that all your team members use—no need to upgrade your system to fit everyone's needs.
Convenient payment system
The good thing about SAAS is that you only pay for what you use, month by month or yearly. You can cancel your subscription whenever you want, which makes the payment flexible and convenient compared to in-house solutions that are paid once but require long-term maintenance.
Optimizes efficiency
Since everyone has direct access to the same data, operations are more efficient because people can collaborate and work together from different locations. You can optimize your resources and use them in the best way possible for running business operations.
Fast deployment
SaaS solutions are highly customizable so that you can deploy them very fast. It's easy to start using a SAAS solution because all you need is an internet connection and user name/password for authentication, making the onboarding process especially simple.
Scalability
If your business grows, you can easily scale your SaaS solution, which is impossible with an in-house solution. In this case, you would need to upgrade your entire system, which can be costly and time-consuming. With a SAAS solution, you can pay more to access higher features or choose from different packages if the company offers several options.
The Future of Operating a Business with a SAAS Service
SaaS has many benefits and has become very popular. This is why it's expected to see more businesses using them in the future. Even businesses with a small number of employees can benefit from using SAAS because they offer everything you need to run your operation without setting up complicated databases and security options.
Conclusion
A SAAS solution is an excellent fit for businesses of any size. It can be easily deployed and offers fast access to data if you have several employees connected to the same system at the same time. Setting up your business operations with a SAAS solution saves money, time, and resources you would need to allocate otherwise to update or upgrade an in-house solution.