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Why SaaS is the Future?

Almost two decades back, Salesforce coined the term SAAS or “Software-as-a-Service”.

Little did people realize back then that SaaS would grow to become the most influential industry and would dominate the cloud computing market one day.

SaaS is the future of software, and seeing this sector’s tremendous growth, many companies are shifting to SaaS.

So, why SaaS is the future?

Let us explore here.

There used to be a time when the software market was troubled with the hassles of updates every five years and had to bear the cost and a lot of pain.

Thanks to SaaS that now constant updates with lesser complexities are readily available, and that too in a secure environment. 

There are plenty of reasons why SaaS companies are the future.

Reasons Why SaaS Companies Are the Future

Need of installing, Maintaining and Updating is Done Away With

SaaS companies are game-changers and have drastically changed the software market’s face.

Gone are the days of installing, maintaining and updating software.

SaaS is the shortest path for quick and easy operations that improve consistently.

This cuts down the overall burden on companies and removes the payment friction.

Regular and Sustainable Income is Assured

Businesses are all about profits and losses, which are unpredictable.

When it comes to selling products or even services, nothing can assure a constant source of sustainable income like cloud-based applications.

Even the most profitable companies have to shut their doors for one reason, but there are no chances of the failure of the SaaS model.

With the help of SaaS subscriptions, companies get regular and predictable revenues for longer.

Hence the consistent source of income is rest-assured with SaaS.

Pricing of SaaS Model is Flexible

The SaaS subscription pricing model is flexible and scalable.

Conventional pricing models are problematic, full of hassles and can be difficult in the fluctuating market.

With SaaS, businesses do not have to bear the expenditure of buying hardware and software. All they need to do is create various types of pricing structures.

The SaaS pricing model is attractive as the users have to pay only for the usage of the resource.

This pricing model is a long-term one.

There is a monthly billing cycle, so the users know what they are paying for, and the pricing is adjustable and balanced, making it easier for the buyers to afford.

Inherent Nature of Scalability Enables Companies to Expand

Cloud-based SaaS models allow companies to expand.

This is so because SaaS has an inherent scalable nature.

So, the companies can be selective about what they want and what not.

They can add features and options or remove them as per the convenience of their users.

Storage and more services can be added without investing in hardware or software.

The scalable nature of SaaS allows businesses to access more features as they grow.

Even a single version of SaaS can support a vast number of customers. As SaaS is easier and faster to scale up, one can do so without investing in extra resources.

Convenient For the Mobile Platforms

With SaaS, business enterprises have gained mobility since applications can be accessed from any digital device and location.

Hence it is convenient for all mobile platforms. Moreover, it is easy to use and user-friendly, putting subscribers in a win-win situation.

Since the SaaS applications are hosted on the cloud, they can be accessed easily from anywhere over the internet, either on mobile devices or other hand-held devices.

When a business person can access critical business information from anywhere, work can also be done from remote places. So, the users can travel freely wherever they want.

Quality Service to the Existing users

A SaaS business model always focuses on serving existing customers with high-quality support and keeps updating them to the paid members.

With the help of this business model, quality service can be given to the present users without much effort, and the focus can be shifted towards retaining the existing customers.

The service is secure and can solve many business problems, resulting in profit and business growth.

It Makes Business Operations Easier

There would be no exaggeration to say that SaaS offers limitless scalability, flexibility and accessibility.

No wonder why a large number of business enterprises are switching to SaaS these days.

Businesses using SaaS tools or platforms are far more adaptable to many unforeseen organizational hassles.

The ability of this business model to run via an internet browser round the clock from any device, no installation, updates of equipment or traditional licensing management is needed, making SaaS the best thing to have in the mind of aspiring entrepreneurs.

It is Cost-effective

Saving the cost of investment is a priority for businesses.

SaaS provides noticeable savings for a vast number of reasons.

The first and foremost savings businesses can eliminate the upfront cost of any hardware purchase, its installation, and the ongoing costs like maintenance and upgrades can also be avoided. Applications can be easily downloaded and maintained. Flexible payment methods and pay-as-you-go models have made SaaS cost-effective.

In the case of the SaaS business model, companies do not have to build a server or install and configure applications.

SaaS is a type of software that works just like a rental which means users are authorized to use the software for a certain period, and the licensing costs are far lower than those in the traditional model. Since the software is in a shared environment, maintenance costs also get shared among its users.

It Assures System and Data Security

Most SaaS models are well-known for providing top-level enterprise security.

This is a holistic approach to security when compared to centralized solutions.

Potential system failures are out of the question because, in the cloud SaaS, pre-existing disaster recovery protocols are there, which means business data is secure in case of any breach in data or system failures. SaaS billing services have a large amount of information for their customers, like credit card details, addresses, bank accounts and even social security numbers.

Hackers and cybercriminals are always looking for an opportunity to harm the system.

SaaS provides up-to-date encryption protocols and a strong defence against hacking techniques. So, there is no question of hacking issues.

Better Collaboration Across Departments

Whether it is just a job consultancy firm, a medical unit, or a motor workshop, customers of the SaaS companies are always better organized.

This happens because SaaS developments improve businesses’ ability to promote collaboration across the departments and teams owing to the facilitation of file sharing and ease of understanding and reading across the systems.

This enables real-time partnering among the groups.

Teams can easily exchange and brainstorm ideas apart from reviewing the real-time progress.

Getting Business Insights Make the System Efficient

SaaS business solutions enable the users to receive updates, software upgrades and new functionalities via notifications as soon as they are released.

This increased the overall efficiency of the system and provided business insights. The best thing about SaaS solutions is that they are automatically updated and can make your data much more secure and usable.

Easy to Update and Upgrade

SaaS upgrades and updates are managed by the service provider, meaning the users do not have to worry about downloading and installing the patches.

Also, users of SaaS models do not need to face the issues of adding bandwidth, hardware or software when the user base increases with time.

Companies had to buy the upgrade packages and install them for specialized services to obtain upgrades whenever required.

Integration of Subscription Billing Services in Operations

The primary factor responsible for the growth of the SaaS business enterprises is that the clients can integrate the subscription billing service into their operations.

Quality subscription billing provider makes it easier for the clients to customize the look and feel of the billing application that is easy to handle and manage. These billing portals are fully customizable and can be easily embedded on customers’ websites.

Data Storage: 

In the SaaS business model, all the data (whatever amount it may be) is saved on the cloud and, hence, is secure.

Organizations can integrate the SaaS applications with other software Application Programming interfaces or APIs.

It is Quick to Start

Traditional software set-ups used to be cumbersome. Businesses used to buy software and hardware for their functional requirements and had to wait for the infrastructural set-up.

The set-up time drops from months or weeks to a few hours or a few days with SaaS. No software or hardware set-up is required, so there can be hardly any delays.

Ready-to-use applications are available through the cloud, which can be accessed almost instantly. Besides, software jobs have undergone a sea change since the SaaS introduction.

What Are the Possible Drawbacks of SaaS? 

There is no doubt that SaaS has a bright future due to its wide-ranging benefit and will prompt companies to switch. But what are its disadvantages?

The most significant advantage of using SaaS is its biggest disadvantage also, which is internet connectivity.

However, with high-speed networks like 5G and broadband availability, this will no longer be an issue.

Apart from that, there can be certain other issues: vendors manage everything, so customers have to be overly dependent on vendors. Also, SaaS solutions have more latency than server or client apps.

Examples of SAAS

Messaging and email apps that we have been using for decades are the best examples of SaaS.

Another popular example of SaaS solutions is Microsoft Outlook which is an important part of many businesses’ cultures today.

SaaS messaging apps like Microsoft teams have also hit the market and are gaining popularity. Google G Suite (Apps), Zoom, Dropbox, Office 365, SAP Concur and Salesforce are examples of SaaS. 


One of the most widely used platforms that unify simple online meetings, video conferencing, and group messaging into a single, easy-to-use platform. 


The app runs both on the desktop as well as on mobile devices. It enables the users to drag and drop files from their desktops into the browsers to upload them to Dropbox.

Office 365

It is an integrated experience of services and apps like PowerPoint, Excel, Word, etc. It is to be updated monthly with the security updates and the most advanced features. 


One of the most popular and widely used SaaS solutions is Salesforce, a CRM that brings customers and businesses together. With this integrated CRM platform, all company departments get a single shared view. 

Google G Suite

G-suite offers solutions for word processing, spreadsheets, email, presentation decks, cloud storage and more. 

Bottom Line

Undoubtedly, SaaS or Software as a Service has a great future. A lot of suitably qualified people looking for software jobs can expect to have a flourishing career.

The subscription-based SaaS model is much more effective than the traditionally used software offered by the companies.

Owing to its multiple benefits like the ability to run via Internet browser round the clock on any device, no installation, no upfront cost, flexibility, adaptability and a lot more, it has grabbed the attention of both the consumers and vendors.

SaaS solutions improve the abilities to organize, store and maintain data; hence, SaaS marketing automation tools are helping businesses reach their targeted goals.

No wonder SaaS has become a darling and an apple of the eye of today’s enterprises!

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