Although SaaS has been around for a couple of decades, many businesses either have not heard of it or are not clear about how it can benefit them. SaaS provides far greater scope for the use of software over web-based apps and enables companies to drive revenue with better, more streamlined processes and access to products they cannot access on their own. It also brings about huge savings.
Web-Based Apps
Before Software as a Service (SaaS) entered the picture, the only option businesses had for their software needs was web-based apps. Each new app a company requires has to be licensed, paid for, and installed, then updated every time a newer version comes out. Security is also not great, and a lot of updates are created to plug gaps that hackers have found to access protected data. Of course, these legacy apps are still with us as SaaS is relatively new and many business owners are not yet aware that they have another choice. Nevertheless, experts predict huge increases for the SaaS market by 2027.
Cost Savings and Benefits of SaaS
Businesses rapidly shifted to a paperless, digitalized environment when the Covid pandemic forced many employers to let their employees work from home. With more data being generated, companies had to find alternatives to storage as server capacities were strained. SaaS platforms provide Cloud storage and better data security for businesses. Additionally, they offer tailored packages for rental, which cuts down on the cost of utilizing apps that are needed to run the business.
A SaaS platform has multiple business clients using some or all of the apps that the service provider has installed on their remote Cloud network, saving businesses from incurring these costs. This gives companies access to more software than they could have afforded on their budgets and is thus advantageous for small companies.
SaaS API assists SaaS clients with the integration of their legacy systems and new applications. Processes can be streamlined for the current scenario as well as for their future software requirements. API stands for Application Programming Interface. This is a go-between or intermediary that makes communication between apps possible.
Equipment maintenance charges are also reduced. Storage capacity is not a problem on the Cloud and there is no concern that data may be tampered with or lost. Backups are automatically performed. Other benefits are increased reliability, security, scalability, productivity, performance, and unlimited users.
The Downsides of Web-based Applications
Web-based applications lack scalability. They can handle limited users. A stable and strong internet connection is a necessity for web-based applications to function smoothly and consistently. Lagging apps frustrate users and hinder productivity. Servers run out of storage space and may crash. Applications are dependent on website functionality. Backups must be done on-site to a server and are thus vulnerable to disruptions and loss of data.
The business is responsible for paying license fees for the app and upgrading it when required, whereas, with SaaS, the costs are carried by the service provider. A company may be able to benefit from a new application but be unable to afford the monthly or annual costs. SaaS would provide them with access to the app for rental at a fraction of the cost.
SaaS will continue to grow and become the new norm in business.
