The migration of an existing IT system to the cloud is steadily increasing. According to a research report from Gartner, IT spending of $111 billion has moved to the cloud from on-premises and will rise to $216 billion by 2020. Also, many IT firms nowadays adopt”cloud-first strategies” as a base to stay in a fast-paced world. CISCO report also reveals that the cloud traffic will increase to 262% and reach 14 Zettabytes (ZB) by 2020.
Cloud Computing consists of three mainstays: SaaS (Software as a Service), IaaS(Infrastructure as a Service) and PaaS (Platform as a Service). Out of all these categories,SaaS is one of the popular models among business organizations. Statista report says that Software as a Service market is expected to be worth USD 132.57 billion worldwide. SaaS market is vast and the opportunity is high for business operations.
What is SaaS?
SaaS is a centrally hosted software, provided to customers in the form of a subscribed service. Such applications run on the SaaS providers’ servers and users access them on browsers.
While using a SaaS application, a user does not need to buy it. Instead, they can pay rent that allows due to which they can use that software service for a specific time. Therefore, the significant benefit of SaaS is to reduce the usage cost. Also, users do not need to worry about technical issues as the SaaS provider has to manage it.
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Though SaaS has been there for a long time, many businesses question whether SaaS is the right option for them or not. RightScale revealed in a survey that 32% of the companies lack knowledge about cloud computing. However, Microsoft generated 30% revenue from the cloud computing technology in the Q3 of 2016.
We will discuss various business benefits of SaaS application design here and how it can be used in a wide array of businesses.
Following are some of the business benefits of SaaS application development
● SaaS can be a money-saving approach
If the cost of the SaaS CRM model is compared to the cost of purchasing software, it might seem a little expensive. But, when you consider the money spent on the hardware to execute the SaaS software would cost cheaper as compared to the other option.
Therefore, SaaS can be a money saver for businesses.
● Expandable to foreign countries
Businesses don’t require any re-seller or marketer for the distribution of the SaaSbusiness model. Since the product will be an internet-based application, you will only be left with a choice to market it on the internet. Therefore, it can even reach to foreign countries.
● Scalability and Flexibility
A business needs to be flexible to achieve success. If you are an owner, you will sometimes need to adjust to changes in your business. SaaS applications allow you to select the delivery model and modify it when the business requirements change. It is easier to bring new users, turn on an extra set of components and integrate with other systems.
SaaS allows you to experiment in a less risky environment with a new project, user base or acquisition. With flexible subscription-based licensing, SaaS applications can scale quickly and easily.
● Updated features
Great features for your business apps can enhance productivity among employees and make work interesting. Businesses with traditional applications have to spend a lot of time for upgrades. Using SaaS, businesses get benefitted because upgrades are controlled by providers so that they could focus on new capabilities.
● Time Management and Performance
The time to deploy a cloud solution is comparatively less than on-premise systems. To avoid the cost related to rollouts, you can host a cloud-based system across various regions. Since you will not need additional hardware, time will not be wasted in obtaining and installing IT infrastructure and VPN access across multiple sites. It allows you to add as many users as you want without worrying about improving the hardware.
Companies using cloud-based applications with the SaaS business model are increasing with each passing day. SaaS allows numerous users to work simultaneously under a similar software suite. The ability of rapid deployment on time tracking software with less investment risk enables business owners to prefer SaaS application development over any other model.
If you still have doubts about how SaaS application development can contribute to the growth of your business, consult the best SaaS development Company and get started with a SaaS-based product idea.
