One of the latest buzzwords in IT is SaaS. SaaS describes Software as a Service. In 2016, SaaS market has been grown to 20.5% from 2015 with an expected value of $ 37.9 billion. It is a huge marketplace that many businesses are tapping it, while there are many on board, but still, there is plenty of scope for growth.
One of the greatest reason for the growth is that software vendors are migrating their business models from on-premised licensed software to public cloud-based offerings. Companies like such as Oracle, SAP which are transitioning their portfolios to SaaS model. In order to cut expenses and enhance performance, businesses require a unique solution. SaaS development provides support for small, medium and large-scale enterprise in cloud computing. Software as a Service can fulfill various requirements so the selection is the critical and essential task.
What is SaaS?
SaaS, means Software as a Service, is a web-based service that is the process of providing software solution or data access to a user connected to the internet. SaaS provider is responsible for making the software, maintaining the server, database, and code for the users who are ready to pay to use these service with its updates and functions on a monthly, quarterly or yearly basis.
SaaS is springing up endlessly because of crazy demand rising constantly from the small and medium business. According to Gartner, adopting SaaS application is a critical and necessary task in order to cut the expenses and improve performance. So SaaS is the process of providing software like project management software, content management software, contact, and scheduling software all these software are available on the internet. Basically, SaaS is one of the three main categories of cloud computing along with IaaS and PaaS. SaaS is also known as “on-demand software” and the charges is applied on the basis of pay per use model.
The following diagram shows service model along with their responsibilities.
Why is SaaS a big deal?
Adopting SaaS in the business requires so many efforts more than simply registration for a monthly or quarterly plan. For example, if your entire business moves to a cloud-based application, your bandwidth needs will increase dramatically. For some user, performance will become an issue, especially for those who are located far from the physical data center. The major problem starts with the current network setup. Your existing network may require branch organization across the world to first connect to your main organization before connecting to cloud-based services. On the other hand, there can be other issues including network latency, packet loss, routing stability, bandwidth, wireless access, capacity and much more.
Well, there are many advantages of SaaS
•We don’t have to pay for costly hardware to host the software
•We don’t have to get the software program (dedicated links, VPNs)
•For employees, no need to install, configure and to keep the software application updated
•SaaS app provider handles all the things from license to its management
Benefits of SaaS
SaaS application is clearly on the rise, but what are the benefits of SaaS that make it become stardom in cloud computing.
SaaS deployment saves you significant budget pack spending on IT infrastructure and employment as cloud computing applications like SaaS involve lower system and maintenance costs than traditional software. For starters, you are only renting the software so there are no upper costs, the company user has the authorization to use that software for a specific period of time. One of the major benefits is that you don’t have to pay for the hardware that hosts the new application and no need to provision the resources to install it.
API’s offered by the vendor do the maximum work in order to get the software running, so IT is not required to go through a challenging installation procedure. The lower cost of enrollment really opens SaaS to a huge market of business with small budgets.
Consistent Price Plan
SaaS model always provides various pricing plans that buyers are free to choose which one suits them most. It all depends on you to upgrade your plan with premium features of the application when your business develops and requires more sophisticated tools. So you only have to pay for what you use. Companies that are using SaaS application finds this easy to manage their budget and effective to reduce their investment risk.
Faster and easy to use
As you don’t need to buy hardware, which means no waiting time. The biggest advantage of renting model with SaaS application is that the setup time drops from weeks to just days or hours. Users are able to provision the server for cloud and quickly get the application ready to use, that means it is much faster for prototyping or running a proof of concept to see if it is the best fit for the business requirements. It is faster not only to deploy but also faster to learn for the average business user.
As a “software on demand” SaaS prioritizes its primary function which is a user-friendly interface on the internet and various mobile device. Therefore, an IT newbie can easily download and learn quickly how to use SaaS application. It provides dedicated support on the backend, so you can easily keep using the application as long as you pay.
Scalability and Flexibility
SaaS applications are cloud based and that is typically where they exist, which makes scale easily. This ties in with being faster as the SaaS model can quickly adapt to spikes in demand which is not easily possible with the on-premise solution. For scale, SaaS application is to adjust the subscription with the vendor. This is the benefit of scaling up and scaling down as well.
One of the best benefits of SaaS is that you can access everything anywhere anytime if you have a proper internet connection because all of your data is put on the cloud. You can also focus on high-value activities truly aligned with your enterprise goals.
You don’t pay an extra fee for any update of SaaS Application that you are using. Your plan already includes all the updates. When SaaS providers expand their products and upgrade their system or fix their bugs customers will not need to download any updated version because the application will seamlessly be updated itself. It will save you time and cost on IT maintenance otherwise you have to repeat the same process on a dozen of computers and devices.
Using cloud –based application like SaaS adds up more security to your data as many to your data as many SaaS vendors design multiple layers of security to their products and database, so you don’t need to worry about losing or private information if your device has been stolen. You can minimize the risk of cybercrime and feel more comfort when using cloud computing including SaaS application. It can be more secure than traditional IT platform.
It is no doubt that SaaS is inevitable and essential for online organization especially for small and medium one because of its numerous benefits over the traditional IT software. More and more SaaS start-ups are joining the race to compete with large scale enterprises, you will have more reasonable and appealing products to choose in the fast pacing market. Depending on your agility, budget and IT infrastructure, you can choose to move completely to SaaS or only partially and keep a mix of both SaaS and Traditional deployments for the best for your business.