Because of the high-speed internet. The days of buying CDs and DVDs to load software or downloading huge installation applications are long gone. And with the advent of cloud computing environments, we are no longer bound to any local software or even devices. 

Similarly, you can use any device from anywhere to access your SaaS applications as they are internet enabled. The software applications are hosted on the server of the provider which delivers them as a service to the end-users using the internet. SaaS, Paas, and IaaS are three categories of cloud computing from which SaaS is considered as a modern technique to access relevant information. 

Some of the popular SaaS solutions are Adobe Creative Cloud, Dropbox, Google G Suite, and Microsoft Office 365. And the names of the companies that leverage the benefits of SaaS app development include Adobe, Amazon Web Services, Microsoft, Oracle, and Salesforce. 

On-Premise vs. SaaS Software

You have to pay an upfront cost when you purchase any traditional software as a license. And you will be paying for a whole package but in most cases, you can either run it on just one device or only one person can use it. On the other hand, its upside is that once you install it on your computer, you can use it for a lifetime. 

Meanwhile, SaaS is neither a standalone purchase nor does it come in packages bundled with hardware. The users have to subscribe to utilize SaaS on a monthly or annual basis. There aren’t any licensing fees either. And if the users do not want to continue using the software application, they can just cancel their services. 

Some other benefit of SaaS app development is that you don’t have to deal with endless contracts or any licensing jargon. Since your app is on the cloud, you don’t have to spend any resources for the development and maintenance of the app or its infrastructure as would with traditional software. There is no need for you to update your application as it’s done automatically. Let us discuss the benefits and challenges of SaaS in detail. 

Advantages of SaaS

1. Hardware and setup advantages 

i) Easy cheap and reliable maintenance 

As SaaS providers are getting paid in the form of subscriptions, you don’t have to pay for the maintenance of the cloud platform or its infrastructure. This approach will also ensure the reliability of your hardware. And with the content delivery network, it is easy for users to use SaaS applications from any corner of the world. Because many cloud platforms have multiple servers located all over the world.   

ii) Fast and regular updates 

After an update is released, traditional software users have to wait until it is delivered to their hardware. Meanwhile, SaaS products are updated quickly and automatically no matter how many end users are there. 

iii) Less time to launch 

Once you subscribe to the software, you can start using the product immediately. Since the provider doesn’t have to work on the customers’ devices, it is very convenient on both sides. 

2. Development and enhancement advantages 

i) Scalability 

Once subscribed, customers have total control over their developed software. You can maintain it from anywhere in the world and serve a large client base with little effort. 

ii) Flexibility 

SaaS solutions are the best alternatives to traditional licensed software. They are flexible enough to change directions as new components can be quickly added and implemented here. SaaS solutions are popular for adjusting to changing market trends and client requirements.  

iii) Security 

The security of your software system, physical infrastructure, and cloud network is of utmost importance. But when you are working with SaaS, you don’t have to worry about it. Because your SaaS applications are built on on-demand cloud platforms that guarantee that you get high-quality security for your SaaS application. The only security-related responsibility you have to handle is protecting your customer data. 

iv) Configurations and integrations 

With the help of third-party providers, Cloud-based solutions can provide secure and personalized integrations and configurations. 

v) Business intelligence 

Businesses have to track their users’ behavior and requirements and having a web-based application makes it easy for you to conduct an in-depth analysis on it. Such customer data can provide valuable insights that can help you make informed decisions related to the future enhancements of your software and infrastructural changes. Such analysis also supports the technical experts and marketers in fine-tuning the business models, controlling server capacity, and creating personalized offers. 

3. Increased customer satisfaction and loyalty 

i) Flexible monetization model 

Under the subscription models, various options for payments are available for the users. Users can pay for their SaaS products monthly, quarterly, annually, or any other previously agreed customized option by both parties. 

ii) Increased lifetime value 

SaaS products are updated automatically which is beneficial for the customers. And with those updates, the customers tend to get all the latest features and functionalities which allows you to use the app for a long time and leverage it further for your business growth. 

iii) Customizable service packages 

Apart from the payment model, users also have a say in which services they want to subscribe to including what components and functionalities they want. A few packages including different types of services and functionalities are prepared by the provider based on the demands of previous customers. Many SaaS providers also provide an option of the custom package where the user can select what they want and pay for just the components they want to use over time. 

iv) Budget flexibility and billing review 

If you have a tight budget, you can choose a free plan that comes with an essential set of features. If your preferences change and you want to upgrade, downgrade or even cancel your subscription plan, you can do it at any time. You will also get to review your payments after every purchase or transaction you make with the provider. 

v) Customer support and care

Personalized software, discounts, special offers, real-time support, option for white labeling, and many more perks are offered to the customers by SaaS providers to ensure that the customers have optimal user experience and are satisfied with the services. 

vi) Trial period 

Many SaaS providers allow their users to use their products with just basic features for free. Even the premium products have the option of a trial period which enables the users to have a full-fledged trial run with all the premium features of the SaaS solution for a short period. This can help you estimate the capabilities of the SaaS application and make a decision about whether it is suitable for your business or not. 

vii) Available on multiple devices 

Any device with the internet can use SaaS applications. Unless there are some advanced features and functionalities that you need to work with that your device can’t support, there is no problem using SaaS solutions on any device. 

viii) Ability to Switch Between Providers

In the case of traditional software licenses, you are stuck with a software or service provider even after discovering that they are not up to the task. But in the case of SaaS providers, if you discover that they are not as good as they promised, you can easily switch your providers. 

You just have to terminate your subscription to their software application and research enough to find one that can help you achieve your business goals. However, sometimes you have to be careful because in some instances switching SaaS providers can be a difficult undertaking. 

Related: Standard Set of QA Practices for Software Companies to Perform Better

SAAS Challenges and Risks (Disadvantages)

1. Less Control

One of the major limitations of SaaS solutions is that being relatively new, it can offer all kinds of services so it has to rely on third-party providers to make up for those services and also provide a secure environment to work on. 

Now, if you haven’t done a background check on the reputation and the quality of service providers, the probability is that you might have to experience some service disruptions or even worse security breaches. 

Therefore businesses must enter into some kind of agreement like a Service Level Agreement with SaaS providers that can enforce them to offer better services and protect you from their blunders. 

In other cases, the SaaS providers may frequently update your applications with new features and functionalities or updated versions of it. Now as the updates are done automatically, the business might face a dilemma when they come across these updates because sometimes they just might not be ready to imply those changes. 

2. Service Disruption and Security Breach

Almost every software service provider tries their best to keep things secure and top-notch. But the applications might become unavailable or even get compromised under some circumstances.  The promise of uptimes can vary from provider to provider whereas the features, updates, and security patches almost remain the same among most providers. 

This indicates that to continuously have uptime, businesses have to solely rely on the SaaS providers. It also says how little control businesses have over their SaaS application. 

Another serious disadvantage is that if your SaaS provider experiences a security breach then your enterprise data is also compromised. This could result in huge financial loss and not to mention the degradation of trust and reputation in the market. 

3. Latency and Performance Issues

Latency and performance issues may arise if the SaaS app users are located far from the data locations of the data centers. If any enterprise company doesn’t have a detailed cloud strategy or just purchases some cloud solution without doing proper research or getting expert consultation then they might just end up wasting their money. This may also lead to poor data management which means more IT workload, so more efforts will be wasted. 

Conclusion

The reason many people believe that SaaS is the future of cloud computing is because of its better scalability, easy upgrades, and low costs. These reasons tempt many small and medium businesses to subscribe to such software services instead of investing in the infrastructure and getting regular software licenses. 

On one hand, they don’t have to worry about deployments or upgrades and on the other hand, having better scalability and flexibility enables them to scale as their business grows gradually. And having top-notch security patches in place is the greatest relief for businesses. 

So it is safe to say that the future of Software as a Service and cloud computing is bright. If businesses can get its implementation right then they can reap the benefits of meeting their business goals and having increased revenues without dealing with or worrying about the technical aspects of their investment. 

I hope this article has been helpful to you. Thanks for reading!

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