In 2023, it is essential to have access to your data and applications from any device and location. However, traditional software installed on your computer cannot meet this demand. You need a service that allows you to connect anytime and anywhere. Often, small businesses and freelancers do not have the resources or expertise to manage and maintain their applications. They need someone to take care of the software updates, backups, templates and other features. A smart solution is the SaaS model, where the provider handles the administration of the application for you.
SaaS is a unique way of using applications. You do not need to install any software on your computer. In 2023, this model is universal — Facebook, email services, Google Analytics, Trello and many more are examples of SaaS applications.
The BetterCloud service has published a report that shows the current trends and future prospects of SaaS usage. According to the report, 86% of companies will rely solely on SaaS services this year.
What is SaaS?
SaaS, or Software as a Service, is a cloud-based technology that enables users to access software without installing it on their devices. This way, subscribers can enjoy various software solutions for their needs without worrying about the technical aspects of setting them up. They can access the software through a browser or a dedicated app.
However, SaaS is not a novel idea. It has its roots in the 20th century, when terminals with keyboards and monitors were connected to a mainframe computer that had a large memory capacity. The terminals did not have processors of their own, but relied on the mainframe to store and process user data. In 2023, SaaS simplifies data transfer by using the cloud as a storage platform. Now the data resides there.
Cloud technology has a structure:
IaaS — virtual infrastructure. This includes virtual databases or servers;
PaaS — cloud for development, or platform as a service;
SaaS — software or ready-made applications that store data on the cloud. For now, SaaS is at the top of the hierarchy.
SaaS is like renting, but for software. You pay a fee to use an application that runs on someone else’s server. You don’t have to worry about installation, maintenance, or updates. You just enjoy the benefits of the software.
The key features of SaaS are:
Cloud-based. You can access it from anywhere and share it with others. This makes it ideal for collaboration and remote work.
Subscription-based. You pay as you go, usually monthly or annually. You can also cancel anytime or switch to a different plan. The subscription model gives you flexibility and convenience.
Hassle-free. The server owner takes care of everything behind the scenes. If something goes wrong, they fix it. You don’t have to lift a finger — just sit back and relax.
Risk-free. Most SaaS providers offer a free trial period. You can test the waters before diving in. You can also compare different options and find the best fit for your needs.
Cost-effective. SaaS is often cheaper than buying and installing traditional software. It also saves you time and resources. SaaS is more than just software — it’s a smart solution.
Benefits and Drawbacks of SaaS Model for Business
SaaS is not a one-size-fits-all solution but it can offer many advantages for customers. Depending on your business type and occupation, you may find SaaS more suitable for your needs.
Some reasons why you need SaaS for your business:
No installation required. You can access the software through your web browser. Sometimes you may need a small client program but that’s usually optional and convenient.
Huge savings. You don’t have to buy the software, rent a space, set up a data center or hire staff to maintain it. You only pay for what you use and nothing more.
Free updates. You always get the latest version of the software without any extra cost or hassle. You don’t have to worry about compatibility or security issues.
Quick setup. You can start using the software in minutes. Just sign up and log in. It’s that easy.
User-friendly interface. You are already familiar with web applications and how they work. SaaS won’t throw you off balance. You can learn the ropes in no time.
Cross-platform compatibility. You can use the software on any device or operating system. You are not tied to the developer’s choice of platform.
SaaS is not only beneficial for customers, but also for developers.
Here is the list of perks they enjoy:
High demand. SaaS is used by some of the biggest companies in the world.
Cutting-edge technology and functionality. SaaS applications and programs are more advanced and powerful but also easier to use in practice.
Fast and cheap deployment. SaaS can reach global markets with minimal cost and effort.
No piracy or illegal distribution. SaaS software is protected by the server and the subscription. The user cannot use the software without paying for it. The developer does not lose money or intellectual property.
Customer loyalty. SaaS customers are more likely to stick with the provider than switch to another one. The developer can build long-term relationships and trust with the customers.
Long-term profitability. SaaS can generate more revenue than selling software licences. SaaS also saves money on technical support and maintenance.
A win-win situation for both customers and developers is the boost in competition. Customers enjoy a better product with more features as the providers strive to outdo each other. Developers attract more customers and investors if they create a high-quality application.
However, the model is not without drawbacks:
Revenues are delayed. The user pays a monthly fee but the cost of acquiring new users often exceeds the income from the first payment. That’s why it’s crucial to keep the user engaged and satisfied. Developers need to retain the audience by updating and improving the software regularly.
Internet dependency. Users may face difficulties if they have no or poor internet connection. Then the applications load slowly or stop working altogether.
Multiple subscriptions. Users may need to sign up for several services to get all the functions they need, which adds up to their expenses. However, the total cost is still usually lower than buying licensed software.
SaaS Development for Business: from Idea to Launch
SaaS applications are often used for both B2B and B2C purposes. They have revolutionised business by automating many routine tasks and enhancing sales management. The development of a SaaS application depends on the desired functionality.
The general steps are as follows:
Research the target audience and the market. It all starts with an idea. Based on that, developers identify and segment the target audience. They need to understand their interests, pain points, emotional triggers and needs. Then they can create a hypothesis — the first version of the target audience. After testing the audience, they can evaluate if it matches or not.
Define the service objectives and design the content. Using the collected data about the target audience, developers specify the goals and features of the service. All the features should address the needs of the customers.
Create a website prototype. To help developers build the final version of the service, they need to develop a layout of its appearance. The prototype should be logical and structured.
Develop the website architecture. The prototype is turned into reality.
Create a design project. To be attractive, SaaS must be original. Navigation should be clear and organised. The application should stand out from the competition.
Test the service. At this stage, developers check the usability and performance of the platform. They need to see how easy and effective it is to use. They also need to find and fix any bugs or glitches in the service.
Launch and promote the service. Once the tests are done and improvements are made, developers can release the application to the market. Here they need to choose the right target audience and run a strong marketing campaign. In the future, they need to update the SaaS platform regularly to keep up with the competition.
How to Choose and Use SaaS for Your Business
SaaS applications are growing rapidly in the market as of 2018. Here are some tips for choosing a service:
Identify your company’s needs. The software should help you automate and improve the customer experience. You should be able to track their actions and requests easily. Customers want relevant and useful content, but creating that content can be costly. SaaS platforms can help you save money and time.
Make a list of desired features. SaaS features can help you manage large projects, prepare documents, comment on plans and tasks, share files and so on. You can also use SaaS to manage your human resources and company expenses. Some applications can even calculate salaries. Some simple examples of SaaS are Outlook and Hotmail, and one of the most popular ones is CRM.
Compare different SaaS options. Don’t pick a service randomly, or you may end up wasting money on subscriptions that don’t work for you. To narrow down your choices, read reviews of the software, their tools and their usability.
Consult with your team. Reviews can give you general information but your colleagues can give you practical feedback. They can tell you how convenient and easy to use the software is for them. You can also ask for advice from other business owners in similar fields – they can share their experiences with different software and how they balance price and functionality.
Read testimonials. Real opinions can show you the pros and cons of different software at a glance.
Use free trial modes to test the software in practice. Many SaaS providers offer a free trial period, usually 7-14 days, or even a free plan. Although the functionality may be limited, you can get a sense of how well the software fits your company.
Examples of SaaS platforms
SaaS services are everywhere, but you may not realise it. Email services are some of the earliest examples of SaaS. Here are some other popular software that use the SaaS model in 2023:
Text and graphic editors, including video editors: Canva, Adobe, Figma, Google Docs.
Audio and video hosting: YouTube, SoundCloud.
CRM: Bitrix24, Salesforce.
Business management systems: QuickBooks, SAP Business One.
E-commerce platforms: Shopify, Squarespace, BigCommerce.
Let’s explore some examples of SaaS applications in more detail.
Dropbox
With Dropbox, you can store, sync and share files online in the cloud. It makes it easy to access your files from any device, collaborate with others and keep your data secure. Dropbox has a free plan with 2 GB of storage and paid plans starting from $9.99/month for individuals and $15/user/month for teams.
Canva
Canva is a graphic design platform that enables you to create stunning visuals for any purpose. You can design logos, flyers, posters, social media posts, videos and more with ease. Canva gives you access to over 250,000 templates and 1+ million free photos and graphics and has paid plans starting from $12.99/month for individuals and $14.99/month for teams.
SoundCloud
SoundCloud is a music streaming and sharing platform where you can discover, upload and promote your own audio tracks. You can connect with other artists, fans and industry professionals on SoundCloud. It allows you to upload up to 3 hours of audio for free, and has paid plans starting from $2.50/month for distribution and monetization features, and $12/month for unlimited upload time and advanced analytics.
QuickBooks
QuickBooks is an accounting software that helps you manage your finances, invoices, taxes and payroll in one place. You can track your income and expenses, send professional invoices, accept payments and prepare reports. It offers a 1-month free trial and paid plans starting from $10/month for self-employed individuals and $14/month for small businesses.
Bitrix24
Bitrix24 is a business management platform that integrates your projects, tasks, CRM, communication and collaboration in one place. You can streamline your workflows, improve your productivity and grow your business. Bitrix24 provides a free plan with up to 12 users and 5 GB of storage, and paid plans starting from $24/month for unlimited users and 50 GB of storage.
Wix
Wix is a website builder that allows you to create stunning websites for any kind of business or project. You can design your site with hundreds of templates, drag-and-drop tools and advanced features. Wix has a free plan with basic functionality and Wix branding and paid plans starting from $14/month for premium features and custom domains.
SaaS Alternatives
SaaS can be substituted by applications that combine traditional software and cloud features. Some of the most common alternatives are:
S+S. This is similar to SaaS, but instead of a browser it uses a special client program.
IaaS and PaaS. These are predecessors of SaaS. In IaaS, companies get access to cloud storage and can use their own tools there. The company only manages the software. In PaaS, the user gets a platform to run the application and the cloud. Here, the software can be created and maintained by the provider.
Software rental. Users get their own copies of the application. In SaaS, all tasks are done through one software.
Conclusion
SaaS can automate work and replace some employees. This can boost the company’s profits. This kind of application is affordable and easy to install and maintain. But it is important to choose the right SaaS-based software. The application should suit the needs of the business. You can learn about the features and functions of the service from the reviews of experienced users. Sometimes you have to try different applications until you find the best one. It’s always a good idea to take advantage of a free trial period, if available.
The SaaS model continues to attract new users. And according to the growth trends of companies using SaaS, in the next 5-7 years, up to 100% of businesses will switch to SaaS services.
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