To embrace the SaaS business model or not? It is one of the main concerns you may be facing as a business owner today. Inspired by the huge success of companies such as Salesforce, more and more start-ups are now on a spree to follow suit.
They are thinking about whether or not to choose an on-premise solution or subscribe to SaaS (Software-as-a-Service).
According to New Q2 data from Synergy Research Group, the enterprise SaaS market is growing by 32% every year and generating $20 billion quarterly revenues for SAAS solution providers.
Microsoft is the leading SaaS-based solution provider that has grabbed a major market share of 17%, followed by Salesforce, Adobe, Oracle, and SAP in the list.
Image Source: Synergy Research Group
Enterprise SaaS market is now fully-grown and not nascent anymore. However, SaaS products and services still contribute to 15% of total spending in this market and are likely to challenge on-premise software in the future, indicating that SaaS development will be predominant in the coming years.
Contents
SAAS – What Is It Actually?
Software as a service or SaaS is technically a software licensing and delivery model, bringing transformation in the information technology these days.
Gartner describes SaaS as an “on-demand software platform that is owned, delivered and managed by a third-party provider from a remote location”.
The SaaS service provider hosts the client’s software and allows it to be accessed in a one-to-many structure. All verified end users can connect to it over the internet at any point in time on a subscription basis or pay as you go basis.
In short, SaaS is computing software maintained by its owner and is available for use on the cloud rather than on your premises. SaaS applications run in the cloud, minimizing downtime.
Where SaaS Is In Use?
Technology market analyst, Forrester Research shows that SaaS acceptance is on the rise in business application areas including customer relationship management (CRM), human resource management (HRM), collaboration software (e.g., Orangescrum, Asana, Wrike, email), and procurement/financial solutions.
It may seem fascinating to you when it comes to accessing cloud-hosted data warehouses with in-built business intelligence software and connecting to a cloud-based ERP such as Microsoft Dynamics or NetSuite with ease.
The $ savings can be in the millions. And SaaS products are often quick to install and run in lesser time than that of solutions deployed on-premises – some of them can be ready to use in a few hours.
Sales and marketing executives have already a taste of Salesforce.com, the #1 SaaS CRM software, with 100,000 customers spread around the world.
Sales are on wheels due to the use of SaaS software too. With Saas applications available to improve sales in invoice management, payment, quote production and configuration, billing, quoting, contract management, electronic signatures, and more what more could you ask for.
How & Where SaaS Scores Over On-premise Solutions?
Deciding between SAAS or on-premises solutions is a crucial step all the SMBs and enterprises will have to go through in order to keep evolving along with technology and keep in action.
Though businesses need the most flexible, cost-effective, accessible, and secure tools, choosing between different kinds of software delivery models can be difficult.
SaaS services and products run on the cloud and have become a better choice than on-premise solutions in various ways.
The use of company infrastructure is what differentiates an on-premise solution from a SaaS solution.
Businesses will have to install and run on-premises solutions on their own servers, while SaaS-based solutions run on the cloud and are generally provided with free support and upgrades.
A business may need a 3rd party vendor or an in-house IT team to support its on-premise system, while the SaaS service provider saves them from this hassle and expenditure.
Thinking whether a SaaS solution will be a better choice for your business or not?
Never miss an update for us. Join 10,000+ marketers and leaders.
Here are 7 areas where SaaS is proven better than an on-premise model.
1. Initial Cost
When working with a SaaS development company, you can not only avoid installation and maintenance charges but also pay what you really want to use. The SaaS development company delivers APIs and makes everything to keep the software running for you.
Hence, the initial costs of a SaaS solution will be much lower than an on-premise solution. It will certainly make a big difference in making a choice.
2. Demonstration & Prototyping
Since the SaaS web application comes in a ready to install and configure the form, there will be little waste of time before you start using the application. Users can directly reach for the cloud and find the application working at any time.
This saves the time to connect and makes way for rapid demos and prototyping. No matter the SaaS product is in demo mode or going live, quick uploading and order writing is possible due to ever active intuitive interfaces.
3. Budget
SaaS app development does not have the risk of unsurprising costs for the subscription. Even if you go on expanding the features, you will have a clear idea of your expenditure.
This makes you come up with an accurate budget when compared to the unpredictable costs of managing upgrades and address issues internally.
4. Support & Maintenance
The SaaS-based solution provider is responsible for upgrading and maintaining the software, ensuring that the application keeps safe and secure while complying with the service level agreements.
5. Adaptation
According to Flexera, just because the SaaS software can be accessed via common web browsers, SaaS applications are recognized to have higher adoption rates. This is true irrespective of the business size and type.
“Regardless of the chosen type, 78% of small businesses will fully adopt cloud computing by 2020. AWS is the favorite cloud services provider of SMBs with a 53% adoption rate.”
(Source: Flexera)
6. Automation & Scalability
SaaS apps have inbuilt APIs that allow safe connection to all internal apps such as CRM or ERPs. The process of integration can be smartly automated in minutes.
And as per scaling with a SaaS provider, there is hardly any huge investment required to enhance the server capacity and renew the software license. You can choose to use the subscription which fits your changing needs the best.
7. Accessibility
The cloud-hosted SaaS software has no problem with accessibility. It can be accessed via any digital device the user feels comfortable connecting with. It has no geographical limitations either. For go-getters, the SaaS software is available whenever they feel like connecting with.
I’ve worked with the team at AndolaSoft on multiple websites. They are professional, responsive, & easy to work with. I’ve had great experiences & would recommend their services to anyone.
Ruthie Miller, Sr. Mktg. Specialist
Salesforce, Houston, Texas
What Then
Businesses are now high on cloud running SaaS solutions that come with a lower cost of ownership to keep abreast of technological advancements.
We rank as the “Top Web Development Companies” on SDC.
To put your start-up in a profitable position in the long run, consider signing up with an awarded SaaS web development company – Andolasoft who has been delivering great services/products and crafting the customer experience beyond satisfaction.
Do you have a SaaS related query? A project you want to discuss or build a SaaS story to remember forever? Get in touch with us now!
