What is a software as a service (SaaS)?
SaaS is web-based software accessible through the internet. Since SaaS adopts cloud computing technology, there’s no need for installing desktop applications — users simply subscribe to a service hosted on a remote server. For example, Netflix is a B2C SaaS platform that offers licensed videos on-demand and follows a subscription model.
The global SaaS market is expanding rapidly and will hit $436.9 billion in 2025. While COVID-19 is causing dramatic shifts in business due to telecommuting and social distancing, more companies rely on the SaaS model. Let’s take a closer look at the benefits of SaaS for business.
Benefits of B2B SaaS solutions
The SaaS model benefits software providers and their customers. For developers, SaaS allows a recurring revenue stream and faster deployment compared to traditional on-premise software. For companies, SaaS offers the chance to reach a wider audience and save software development and maintenance costs.
Here are the top advantages of choosing SaaS for business:
- Cost-effective.A software vendor holds all maintenance and infrastructure costs.
- SaaS products can be accessed from anywhere via a web browser.
- Customers can change their usage plans anytime without hassle.
- Easy to integrate.SaaS solutions support multiple integrations with other platforms.
- The decentralized nature of cloud-based technology protects user data from breaches and loss.
- Come with free service.SaaS provides automated backups, free updates, and swift customer support.
- Easy to use.A friendly interface and simple user flow make SaaS easy to use for everyone, regardless of their technical skills.
- Offer free trials.Most SaaS vendors allow you to try it before you buy it.
The best part is that SaaS fits all industries and company sizes, so both large and small businesses can benefit from it equally. In the next chapter, we will explore different categories along with the most prominent examples of SaaS software.
Different types of cloud services for different business goals
Cloud as a service is in high demand for small enterprises to global billion-dollar corporations. However, cloud services grasp more than just SaaS technology. When thinking about moving business operations online, it’s important to know what options you have.
Each cloud model provides specific features that can be leveraged for particular business needs:
- SaaS is suitable for small companies that are looking for solutions with rapid time-to-market and low costs. It’s also beneficial for short-term projects and companies that need simple and affordable software for managing their inner processes
- PaaS is the right fit for software development projects, especially the ones with multiple development workflows. Since PaaS is extremely flexible and adaptable to customization, developers can integrate with third-party vendors with ease.
- IaaS will benefit companies that prefer to control their infrastructure and avoid extra costs. For fast-growing companies that often change their hardware and software requirements, IaaS offers ample flexibility and scalability.
Whichever option you choose, the fact that cloud computing services are the future of business is beyond dispute.
The bottom line
Thanks to powerful tools available through the cloud, more businesses can enhance their operations and increase profit with SaaS, PaaS, and IaaS. Whether companies need to store their software, maintain and secure their infrastructure, or effectively manage their teams, cloud computing solutions remove barriers to meeting business goals.
Blackthorn Vision has been building smart scalable SaaS solutions for startups, small, medium, and large enterprises since 2009. Our vast experience in SaaS development grasps multi-tenant applications, microservices, API integrations, and end-to-end DevOps. From implementing software architecture to designing mobile-friendly SaaS applications, we help companies establish recurrent revenue streams.