What is SaaS?

Technology has enabled companies to go from on-premise solutions to on-demand. The driver here is the cloud and SaaS, but what is SaaS, and should your business consider moving to the cloud?

But what is SaaS?

SaaS or Software as a Service, also known as the ASP (application service provider) services, software on-demand, or – simply – service in the Cloud, offers a connection and subscription to IT services built on shared infrastructure via the cloud and deployed over the Internet, rather than purchased and downloaded or installed locally.

In other words, the software that you want to use is delivered and managed remotely, which you can access via your preferred web browser (and mobile device).

How important is Cloud?

According to research from the 2020 State of Cloud Report by Flexera, 61% of companies have cited “migrating more workload to the cloud” as one of their top 2021 cloud initiatives (it ranks second, behind “Optimizing existing use of cloud”).

Companies use an average of 16 SaaS apps to run their business every day, and if you’ve used SaaS – whether personally or professionally – you will see that SaaS is suitable for anyone.

Do you subscribe to Dropbox to store your photographs online? That’s a great example of SaaS.

Benefits of SaaS:

Reduced time to benefit

Software as a service (SaaS) differs from the traditional model because the software (application) is already installed and configured. You can simply provide the server for an instance in the cloud, and in a couple of hours, you’ll have the application ready for use.

This reduces the time spent on installation and configuration and can reduce the issues that get in the way of the software deployment.

Easy to use and perform proof-of-concepts

SaaS offerings are easy to use since they already come with baked-in best practices and samples. Users can do proofs-of-concept and test the software functionality or a new release feature in advance. 

Also, you can have more than one instance with different versions and do a smooth migration. Even for large environments, you can use SaaS offerings to test the software before buying.

No huge initial investment

SaaS operates on a pay-as-you-go model with no large upfront fees. You just pay a monthly or annual subscription fee to use CRM as a service.

This is one of the reasons why SaaS is usually favored by midsize companies who are careful about how they invest their budgets into new systems – even if it’s considered business-critical.

No IT troubles

A hassle-free IT life is definitely the top selling point of SaaS CRM.

The subscription-based pricing method entails virtually no system maintenance fees, such as back-up, updates, and security.

There is no need for a user to buy, install or update any hardware or have a local server installed, which are certainly costly and require maintenance. This, in turn, means that you don’t need to employ a dedicated IT staff.

Key Takeaway

When it comes to SaaS adoption, the key benefits are:

  • the absence of IT-related troubles, meaning that the user does not need to buy, install and maintain any hardware;
  • no large upfront license fees, especially additional payments for maintenance and upgrades;
  • easy customization as SaaS offers a flexible and scalable IT solution that is compatible with a range of other business tools.

Leave a Reply