More and more companies are shifting to the Software as a Service Model, commonly known as SaaS. It is gaining popularity across industries, and there is a good reason why this is happening.

At its core, SaaS provides an alternative to standard software installation, which includes building the server, installing the application, and configuring it.

So, instead of downloading an app to your computer and regularly updating it, you access it via the Internet. You or your organization are allowed to use this software for some time and pay for it. So all you need is the Internet.

On top of this, software vendors need to manage the technical issues, which means that you don't need to worry if something goes wrong. Instead, you can lean on their expertise.

There are three types of commonly used cloud computing services:

• Infrastructure as a Service (IaaS)
• Software as a Service (SaaS)
• Platform as a Service (PaaS)

What is the difference between SaaS and the Traditional On-Premise Model?

Most of the traditional on-premise solutions can be purchased only if end-users pay for the whole package in advance. Also, in this case, software licenses are usually limited to one user or one device, regardless of whether it is a standalone purchase or bundled with hardware.

So, to be able to use the app, the user has to pay the price once and then use it by installing it on their computer or some other device. On the other hand, the SaaS model enables its users to subscribe to the service and pay for it annually or on a monthly basis.

On top of this, the end-user can always discontinue the subscription when they no longer need this kind of service.

This way, companies don't have to sign contracts or encounter licensing issues which are so common when using on-premise solutions.

Undoubtedly, Cloud computing is gaining momentum and that more and more vendors are offering SaaS as one of their services.

If you are thinking about moving to the SaaS model but are not sure about how to implement it and how it can benefit your business, you can reach out to web design agencies in New York. And let them do the heavy-lifting for you.

The best thing about the SaaS model is that it offers its customers savings and flexibility. This way, customers can focus on other things that matter.

To get a clear picture of how the SaaS model can help you bring value to your business, we've outlined the main advantages and reasons why more and more companies are moving to the cloud.

The benefits of the SaaS Model

Accessibility

One of the most important reasons why companies choose the SaaS model is that it can run through an Internet browser. In other words, it does not matter whether you are using Mac, Windows, Linux, or some other operating system; you can access the app from any browser you are using.

This means that you don't have to worry whether your operating system will be compatible with the app. You may also be able to use it on your mobile devices like your phone or a tablet.

In other words, the SaaS model is really mobile-friendly. This also means that you can get access to all of your files from anywhere at any time — all you need is user authentication and an Internet connection.

Reduced time to benefit

The biggest difference between SaaS and the traditional model is that SaaS is already installed and configured.

Already installed means that you will have your software ready for use in a couple of hours once you provision the server for an instance in the cloud. This saves loads of time you would otherwise spend on installation and configuration and prevents any issues you may face during the software development.

Cost-efficiency

Another great thing about SaaS is that it reduces and eliminates numerous costs users have to pay for the installation and configuration of an app. On top of this, with this model, users no longer have to pay for maintenance and upgrades.

Once you download an app, it is easily manageable from the user's end. Also, SaaS models allow you to pay as you go, meaning that users need to pay only for the software they are using without having to waste their resources on unused licensing.

If you are running a small business, choosing SaaS is the right thing to do because it provides you with a subscription-based form that eliminates a financial risk that usually comes with expensive software.

On top of this, as mentioned above, the provider of the app handles the complexity of the required Infrastructure. As a result, when using the business app through SaaS, the end-user no longer has to worry about resource-consuming hardware maintenance.

This is the responsibility of your SaaS hardware, allowing you to use all of your resources and redirect them to some other important processes.

Compatibility

If you are using a conventional installation method, it may take a large amount of money and time to install it.

Also, version discrepancies between your team members can cause compatibility issues and take much of your time.

On the other hand, SaaS enables its users to simply log on to already upgraded services.

Better Collaboration

If you are using Google Docs, you are pretty much familiar with a non-relational database the SaaS model offers to its end-users.

This kind of model enables users to collaborate easily and simultaneously on one document, make comments make edits allowing everyone to see the changes while updating them through notifications.

This makes the whole work more productive and efficient and provides a single source of truth for all of its users. This collaborative advantage of the SaaS model also allows its users to streamline value-chain communication.

For instance, if you and your team are using a PLM system, you can have easy access to important project data without having to download or install the software.

As a result, you no longer need to send documents and files via email, which then leads to loads and loads of outdated information on your hardware.

Easy-to-use proof of concepts

Taking into account that the Saas model comes with already baked-in best samples and practices, users can test the new feature or a new software functionality upfront. Plus, users can have a few instances with different versions, which then allows them to do a smooth migration.

You can even use SaaS offerings to test the software before you buy it.

Faster Innovation

With all this being said, we come to the more organizational benefits of SaaS software as it provides more accelerated innovation: it provides its customers with easier and faster access to technology improvements.

Since there is no implementation process with SaaS, networks, the hardware, and the software can easily go with just one click of a button.

Plus, all of the upgrades, updates, and bug fixes are executed on behalf of the vendor eliminating headaches end-consumers typically experience if they are in charge of the maintenance of the software.

So, with SaaS, users always have access to the latest and greatest version of the software.

Saving and storage

On the one hand, on-premise storage of data requires you to invest in reliable backup options like cloud storage or creating some other disaster recovery plan to be able to prevent any kind of hardware crash that can lead to serious consequences like a significant loss of data.

On the other hand, the SaaS model allows you to save data in the cloud. This does not only help you store and save a huge amount of data, but it also allows you to switch between devices without losing data or your work.

All you need to do is log into one single account on any type of device you choose.

Data and Analytics

Since everything is run through one centralized platform, SaaS allows you to easily gather data and then provide it for analytics use.

So, if you and your organization decide to use SaaS offerings, you will have easy access to intelligence tools, reporting, and visualization, which then can provide you with important insights into business operations, allowing you to streamline your processes and significantly improve your organization's efficiency.

Also, since access depends on subscription, there is no need to worry about piracy which might otherwise cause damage to both pricing models and the access.

The Disadvantages of SaaS Model

While the SaaS model can be an ideal solution for most companies out there, there are a few downsides of SaaS you need to be aware of before choosing this solution.

• Bad Internet connection — One of the most common challenges when it comes to SaaS is, surprisingly, at the same time, one of the benefits of SaaS — the need for an Internet connection. So, if you have a good, reliable Internet connection, you can reap all the benefits of SaaS. On the contrary, if your Internet connection is bad, you may not be able to use the software at all. Of course, with the increasing availability of high-speed networks and such as 5G, a bad Internet connection is no longer such an issue. However, there are a few more things you need to keep in mind before opting for SaaS.
• Loss of Control: With SaaS, the vendor is able to manage everything, which, in turn, makes you dependent on its capabilities.
• Limited Customization: Most vendors that offer SaaS apps do not provide a possibility to customize the app the way you want to.
• Slower Speed: SaaS solutions may be slower than client/server apps
• Security Risks: While the SaaS provider provides high security for the app, you still need to make sure to secure your sensitive data.

Bring Your Business to a Higher Level with SaaS Model

Features like scalability, easy access, lower costs are among the top priorities of smaller and bigger businesses in today's ever-increasing market.

Also, more and more businesses are interested in renting software instead of investing loads of money into it, especially because with SaaS, they no longer have to worry about deployment, patches, and upgrades.

The bottom line is that with the SaaS model, you and your organization can scale as you grow. By implementing SaaS solutions, your business can achieve high revenues in a short time and reach your business objectives.

Don't waste your time! Leverage the SaaS model to drive business growth!

Author bio

Rick Seidl is a digital marketing specialist with a bachelor’s degree in Digital Media and Communications, based in Portland, Oregon. With a burning passion for digital marketing, social media, small business development and establishing its presence in a digital world, currently quenching his thirst through writing about digital marketing and business strategies for DigitalStrategyOne.