Software-as-a-service, or SaaS, is a distribution model where users are given access to cloud-based programs online without needing to install them locally. In many ways, these web-based applications serve as a more cost-efficient alternative to traditional offline computer programs. And their on-demand and subscription-based nature have increased their popularity among businesses and consumers alike.
In fact, some sources project its market to grow exponentially, thanks in no small part to the multitude of benefits it offers companies. In this article, we’ll cover some reasons why SaaS is a must for businesses, especially those looking to scale.
Most SaaS applications reside in shared environments, making software licensing and hardware costs much lower than more traditional models. As a result, it makes scaling the consumer base possible, whether you’re running a mid or small-level enterprise. When compared to other models, licensing would have resulted in additional charges that could affect your bottom line. Moreover, there are fewer maintenance costs due to SaaS providers’ control over the hosting environments.
Generally, the software will already be configured and installed within SaaS applications. Due to this, there’s a dramatic reduction in time that’s spent configuring resources. Instead, businesses only have to configure and set up servers for particular instances within the cloud platform. Then, within a few hours or less, applications are ready for use. Thus, less time is spent on configuration and setup actions and more on the utilization of the software in comparison to traditional models.
Integration and scalability
Another benefit of SaaS is the ability it offers companies to scale their resources depending on need. The ease of flexibility in this model is something many others lack since applications are hosted over cloud-based environments that typically come with capabilities built into the platform to scale down or up. This means you don’t necessarily have to purchase new software or servers to achieve the desired level of scale. All it takes is a quick call to the SaaS provider, and they can set up a scaling solution and capacity planning alongside other integrations.
Improves customer relationship
SaaS streamlines operations and makes for a more efficient workflow, leading to more robust customer engagement and relationships. For example, insurers using agile SaaS insurance software will be able to respond immediately and address their clients’ concerns with higher accuracy and in real time. This allows them to inspire confidence and trust in their customers, encouraging more business in turn.
It comes as no surprise that more and more organizations across many industries are adopting SaaS services. After all, not only does it enable them to maintain a higher and more consistent level of productivity in their operations, but it can also drive down operational expenditure, resulting in more profits and a more increased stream of revenue. In addition, it makes scaling more manageable, which makes growth and expansion far more attainable.