What is common in businesses like Google, Mailchimp, Slack, Hubspot, Shopify, Salesforce, and Zoom? Yes, they are all working on the SaaS business model, which is pretty much a big talking point in the business scene. And if you think that you will be missing out on something if you don’t pay attention to what it is, then yes, you are somewhat correct. Well, let’s go over the advantages and disadvantages of the SaaS business model, so you can understand all of it in a much better way and finally can make a decision about it. Alright, here we go then.
Advantages of the SaaS Business Model
1. Lower Costs, Both Upfront and Ongoing
To start off with the benefits, you see, the biggest one is for sure the ease of starting it up and keeping it going, you know? Like, instead of going all out and buying a bunch of technical hardware and permits, unlike traditional software, the SaaS model works on a subscription basis. This means that customers pay a monthly or yearly repeated fee instead of making a single transaction. Moreover, all the technical stuff that a computer company such as SaaS provides is something a business could be concerned with less, making the company save money. In simple words, SaaS is a service that is provided by a third party where a company using it doesn’t need to buy hardware-related technology or spend on the IT staff to do maintenance and updates and this makes the company save a lot of money.
2. Instant Access, No Waiting Around
SaaS Applications are essentially tools that can be used with a single sign-in and hence don’t require installation. Hence the SaaS cloud solution is the fastest compared to the traditional software which usually takes longer efforts and many complex steps to launch it, you know? So, in other words, as long as you have signed up for the application, SaaS is available to you immediately.
3. Automatic Updates, No Effort Needed
Another benefit is that the SaaS provider also takes responsibility for every new patch and for every upgrade easy to install. You don’t ever need to worry about doing an OS update or a modifying device or integrating a piece of already paid or incapable software. The provider stands for the latest versions of the program and the newest updates, and you will also get all of this without any action on your part.
4. Work From Anywhere, Anytime
Another pretty awesome thing about SaaS is that you can access it anytime. All you need is an internet connection. Thus, it is great for people who work remotely or on the go, you know? The software can connect to any device, whether a laptop, tablet, or smartphone, and gives you complete freedom to work anywhere. The essence of SaaS is its customer-centric approach and cloud-based approach. On top of all that, SaaS solutions are also designed to enable customers to seamlessly connect with them through their devices, thus adapting them to their new environment.
5. Scale Up or Down Whenever You Need
SaaS services are incredibly flexible. When your business grows and you need more features or users, you can easily upgrade your subscription plan. Just as easily, if your needs decrease, you can downgrade your plan, simple as that. This flexibility is one of the reasons the SaaS model is so appealing to companies that may have to change in size or have inconsistent requirements.
6. User-friendly and Fast Onboarding
SaaS applications are designed to be intuitive and user-friendly, that’s for sure. Even if someone doesn’t have strong technical skills, they can start using the software quickly, right? So yes, you’d have to appreciate how easy it is for not only the business owner to utilize SaaS, but it is super easy as well for the subscribers or the customers of that particular business. That means it really goes both ways.
Disadvantages of the SaaS Business Model
1. Less Control Over Customization
One thing that can be a real bummer about SaaS is the fact that you don’t have complete control over the software itself. The provider is the one to do updates, and security, and decide when they include or exclude some features. Thus, while you are free from the technical hassle of work, you may not be able to get the customizations you want. At times you will also have to like changes that were made by the provider exactly against your wishes, for example, by clicking the button of ‘Upgrade’ or the like, even if you preferred the earlier release of the software.
2. Is Your Info Really Safe?
Particularly for businesses dealing with sensitive information, the basics of Saas being a cloud-based operation are somewhat of a concern. Why? Well, as a user, you store your data on a third-party provider’s cloud which could be a reason for worry, especially if sensitive information is involved, you know? And sure, you have to trust the provider’s security measures, but there is always a remote, though small, risk of your data being exposed or hacked.
3. Dependent on Your Internet Connection
Because SaaS runs over the internet a stable connection is a must, ALWAYS. If your internet is down or slow, you cannot access the software nor your data. This may really be a problem and is especially a problem for those businesses that must have constant access to their applications in order to stay competitive.
4. Downtime Could Be a Problem
If the SaaS provider has technical problems or server outages, your access to the software could be impacted very well. Should the downtime last too long your business operations might be halted for an undefined period of time, and that’s not good at all.
Conclusion
That’s pretty much it for today. With these aspects of the SaaS business model right in front of you, it should be much easier for you to decide whether you should dive into it yourself or not. Right? Well, that’s what we aimed for and we truly hope that we helped you out in some way with this info.
