What is SaaS and why it’s going to thrive in the future of software applications? Part 1

I think I can safely assume that you all must be familiar with the term “Saas”. If I use its full form Software as a Service, I am sure it won’t be hard for you to get at least some vague idea about what it means.

In very simple terms, SaaS is software that you “rent” and is hosted “in the cloud” and accessed via the internet. Until recently the only option that organizations had was to go for Enterprise Software.

What is Enterprise Software?

Wikipedia defines Enterprise software as computer software that is used to satisfy the needs of an organization rather than individual users. Such organizations include businesses, schools, interest-based user groups, clubs, charities, and governments.

Basically, Enterprise software is an overarching term for any software used in large organizations (whether business or government)

What is Saas?

A lot of enterprises have started opting for Saas instead of the traditional Enterprise Software.

Software as a service (or SaaS) is a way of delivering applications over the Internet—as a service (as the name suggests). Instead of installing and maintaining software, you can simply access it via the internet, freeing yourself from complex software and hardware management.

What are the benefits of Saas over Enterprise Software?

1. Significantly reduced costs

Since SaaS apps are typically delivered in a shared or multi-tenant environment, where hardware and software license costs are lower than in a conventional model, it can save money. Also, in the case of SaaS, the cost is converted into OpEx(Operational Expense) from CapEx (Capital Expense).

Additionally, since access is based on a paid subscription, SaaS providers don’t need to worry about piracy, which could otherwise cost the supplier money and damage both access and pricing models.

2. Flexible capacity

In the case of SaaS, it’s always the provider’s responsibility to scale and deploy cloud compute and storage to handle unforeseen traffic which of course eventually leads to a lot of satisfied customers for you. All you need to do is to specify your SLAs and peak loads and the provider will take care of whatever your requirements are according to your specifications.

3. Easy accessibility

SaaS apps have the advantage of being able to run via an internet browser, regardless of which Operating System is used to access it. Consequently, the program remains accessible regardless of whether the user is attempting to run it on a Windows, Mac, or Linux system (or even a smartphone running Android or iOS).

4. Seamless data capturing

Since everything is managed through a centralized network, it’s simple to collect data using SaaS apps and make it available for analytics. When you use SaaS apps you also get to access monitoring and intelligence tools and visualizations. This results in streamlined workflow and cost-saving with helpful insights into business operations.

5. Reduced burden on the IT department and low maintenance

With SaaS apps, the provider takes care of deploying and maintaining an application on a day-to-day basis, including testing and installing updates, handling upgrades, tracking results, ensuring high availability, and so on. This results in a reduced burden on the IT department so that they can focus on high-value activitiesthat align with and support your business goals. The department can have a more significant opportunity than ever before to contribute to your company’s success directly.

6. Improved global connectivity and enhanced market reach

SaaS apps enable you to have better data access from any networked computer while also making it easier for you to control rights, track data use, and ensure that everyone sees the same information simultaneously. So, all users can have the same app update, making communication easier. SaaS apps can provide software services to most of the market rather than just a tiny, focused segment. As a result, pricing becomes more affordable and open to companies of all sizes. For users, this means having access to services that aren’t ordinarily available, thereby expanding and improving business services, productivity, and opportunities in general.

7. Easy and fast

Since the software (application) is already installed and configured, software as a service (SaaS apps) varies from the conventional model. Once you decide, you simply pay a subscription fee to gain access to the software and start using it, cutting long cycles of procurement, installation, and configuration. This provides business speed and flexibility.

8. Customization

SaaS applications are often customizable and can be integrated with other business applications. Organizations can integrate SaaS applications with other software using application programming interfaces (APIs).

9. Enhance the ability to save and store information

Data storage in Enterprise software necessitates the investment in secure backups, such as cloud storage or other disaster recovery plans, to prevent any significant hardware failure that could result in substantial data loss. On the other hand, in SaaS apps data is routinely stored in the cloud. Not only does this provide continuity, but it also allows workers to move between devices without missing work or data by simply logging into a single account, regardless of which device is being used.

Wrapping Up

To wrap up, I want to talk about the future of SaaS. According to a report from Spiceworks Ziff Davis, soon companies will use SaaS to enable operations, and productivity tools will take up the largest share of the overall software budgets.

I think these 4 trends are going to shape SaaS use in 2022:

1. The cloudification of everything

SaaS will become more central to operations and organizations will hire more staff, investing in people who can help manage critical third-party platforms.

2. The middle buyer strategy expansion

Vendors will have to look beyond customer technology budgets to grasp what types of software will sell in 2022. More business units will opt to independently procure SaaS licenses as the software will grow more decentralized.

3. Modular software buying

SaaS vendors will no longer  thrive on selling products in bundles

4. The power of APIs

Business leaders will keep APIs and interoperability in mind when shopping for SaaS this year.

Lastly, I think when it comes to choosing the most suitable Saas provider it’s very important to know what are the factors to consider for it. I wanted to talk about it in this blog but I don’t think I will be able to do justice to the subject without dedicating 1 whole blog to it. And that’s what I am going to do. So keep watching the space for my next blog.