A SaaS breakdown – What it means and the importance.

A SaaS breakdown – What it means and the importance.

May 31, 2021

With more organizations choosing to go "green" and reduce their carbon footprint, one of the emerging trends is the use of Software as a Service (SaaS). Even though many don't pay close attention to it, we use SaaS every single day – below is a list of popular SaaS companies to get started:

  • Netflix
  • HubSpot
  • Dropbox
  • Salesforce
  • Amazon Prime Video
  • Uber
  • Slack
  • So what is SaaS?

    The literal translation is "Software As A Service." SaaS is a way of application deployment where Software is hosted on servers and is made accessible to users over a remote network (the cloud). Simply put, users lease the Software in exchange for monthly or annual usage. Most SaaS services provide a usage-based billing plan which users can purchase on a monthly or yearly basis.

    One of the main reasons SaaS has become so popular is that it enables successful companies to build customer loyalty from the ground up. The most successful companies that have chosen to go the SaaS route have a strong IT and Customer Support presence. The ability to provide quick and efficient response times coupled with excellent customer support are key factors in the success of a SaaS company. The best companies can guarantee the satisfaction of all their customers, have a well-developed Customer Service strategy, and deliver new Software quickly.

    The other key reason why SaaS is becoming so popular is scalability. Scalability is the ability to alter the capacity of a system once it is in place. In other words, you can develop an application once, deploy it and then modify it and deploy it again without having to change hosting providers, upgrade operating systems, Etc. Traditional software development and scalability are very time-consuming and costly. In contrast, the techniques based on the cloud and SaaS models allow for near real-time modification of the system without requiring any additional technical expertise.

    Another way in which SaaS has been successful is the ease of use for both the customer and developer. Developers trying to get into the SaaS industry can find an easy-to-use yet powerful platform. Likewise, the customer who needs a hosted solution can find a host of easy-to-install software products already familiar to most IT teams. This ease of use makes it easy for both sides to make mistakes, but it also provides long-term benefits.

    The cost savings and ease of use that SaaS brings to the table also help to lower the barrier of entry for new entrants to the market. In other words, small organizations can more easily enter the SaaS market. The less expensive and more easily deployed solutions mean that there will be less of a learning curve for new cloud-based commercial software services. This, in turn, will mean faster deployment and greater return on investment for any organization. Of course, lower pricing will also mean that you can offer competitive pricing to your customers.

    In summary, SaaS is an exciting innovation in cloud computing because it leverages the power and versatility of the cloud to provide true scalability, as we mentioned earlier. By leveraging multiple clouds to provide a consistent, reliable infrastructure and a flexible, easy-to-use, cost-efficient solution for all of your cloud-based services, you can quickly bring in new clients while maintaining strong customer relationships. For more information on how you can use this powerful and flexible technology in your company, contact us, and we can help guide you in the right direction. Our agency focuses on custom software solutions, so if you've had an itch for a custom solution for your existing business or perhaps you have a new business idea but don't know where to get started, let's begin a discussion!

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