SaaS is an acronym for software as service. It is a technique of software licensing and delivery where software is available online through subscription instead of purchasing and installing on individual computers. It is a business model that comes with a lot of advantages for both users and developers. It is estimated that 33 percent of businesses and organizations have adopted the SaaS business model as opposed to three years ago.
SaaS is also referred to as “on-demand” or “hosted” software. According to Yalantis there are many reasons why SaaS is increasingly gaining popularity across the world. The software has proved to be an invaluable asset for both big and small enterprises.
Besides, you can use application programming interfaces (APIs) to integrate SaaS with other software. Many business applications nowadays use SaaS as a standard delivery model. This includes document management, accounting, customer relations management (CRM), Enterprise Resource Planning (ERP), Human Resource Management, Management Information Systems (MIS), content management and consolidation, and Service Desk management.
What is Software as a service (SaaS)?
Software as a service (SaaS) is relatively a new software distribution model that enables customers to access applications through the internet. All SaaS products are normally hosted by a provider who is responsible for automatically maintaining and updating the software. Customers or users access and use SaaS applications through web and mobile browsers.
Cloud Growth: SaaS vs other cloud services
Software as a Service and cloud services are normally used interchangeably despite the fact that the two refer to different offerings. Although both SaaS and other cloud services share a lot in common, they are also different in a number of ways.
Difference between SaaS and cloud services
Software as a Service (SaaS) is a cloud-based delivery technique that makes it easy for software applications to be available throughout the internet in real-time. All SaaS applications can be easily found via the internet and the user doesn’t have to purchase and install a software or application manually.
On the other hand, cloud services or providers use their own servers to manage applications in their data centers. As such, they are responsible for the performance, security maintenance of it. This means that users don’t have to worry about regular updates or support.
SaaS providers normally license their applications to users on a subscription basis. Users are required to pay a monthly fee depending on the type of services as well as the number of users. This is a major advantage of SaaS since it gives you an opportunity to choose a service based on your needs.
What are other cloud services?
Software as a Service is basically a form of cloud service that is commonly used today. The two other major types of cloud service include Platform as a Service (PaaS) and
Infrastructure as a Service (IaaS).
What are the main business advantages of cloud/SaaS-based services?
Migrating to a SaaS business model comes with numerous benefits. There’s no doubt that the future of SaaS is bright and many businesses are adopting it every day. The most important thing is to know how to migrate to SaaS.
- They are highly affordable
Contrary to log-established software, SaaS applications such as CRM are mainly based on subscriptions. The subscriptions comprise maintenance, upgrades, and some level of customer support.
- No need for physical infrastructure
When implementing a business application using SaaS, both the single-tenant architecture and multi-tenant architecture are managed by the SaaS vendor.
- Easy and fast deployment
With A SaaS solution, all you need is a web browser and online access. But with traditional software solutions, it can take weeks or even months to deploy.
- Safety and security
In most cases, business information is more secure in a SaaS solution compared to when it is stored in customary software.
- Work from anywhere
SaaS solutions can effortlessly be accessed from anywhere with minimal internet connection. You are able to access your information and work from anywhere you wish.
SaaS acquisitions and IPOs
2021 saw a record number of companies going public, and the amount will definitely increase in 2022. This is probably because of the many advantages presented by the SaaS technology stack. The fact that many companies are embracing SaaS technology makes investors confident about the future cloud-based services.
The past few years have seen more and more companies adopt SaaS models in their daily operations.
Top SaaS trends in 2022
Artificial intelligence (AI) is one of the innovative technologies that will define how the SaaS model works in 2022. Hyper-personalization is a great benefit that artificial intelligence is going to bring to the table.
When SaaS was being introduced, there were no integration solutions. It was not possible to merge products and services. Customers were forced to rely on third parties to complete their transactions. But the good news is that more vendors are coming out to offer greater integration capabilities.
Integrations in SaaS have also gained momentum simply because they minimize human error through partial automation during the SaaS development process. Zapier is a great example of a product that exhibits seamless automation. The tool is able to quickly merge a wide variety of platforms from email clients to CRMs.
Many people confuse Machine Learning with artificial intelligence. Machine learning is a component of AI whose focus is learning capabilities and data processing. Some of the common uses of ML in Saas include:
- Processing large amounts of data and insights
- Optimizing internal operations and collaborations
- Ensuring data security through advanced pattern recognition
- Increasing customer engagement
A good example of a SaaS application that utilizes machine learning is Salesforce.
The competition on the SaaS landscape is getting stiffer every day. As many players get into the market, companies are striving to adapt and come up with more innovative ways of providing customers with services.
One approach to adapting to such a competitive environment is by creating smaller and more flexible products. Micro SaaS applications are usually add-ons or extensions to larger products whose aim is to optimize the experience of specific industries.
SaaS technology has brought a lot of transformation in the business world. As a business owner, you want a technology solution that will help grow your customer base. Cloud-based SaaS technologies like SaaS come with many advantages.
For example, it offers more security to your business information, allows you to work from anywhere, no need for physical infrastructure among other benefits. It can also be easily accessed via the internet unlike other software that require installation. All you need is to identify a cloud-based solution or software that best suits your business or organization. In other words, SaaS technology has helped transform many businesses.