What is Software as a Service (SaaS) and Why Is It Important?

Software as a Service
Posted on

Software as a Service, or SaaS is hosted by vendors or service providers that host applications remotely and make them accessible to consumers over a network. Users don’t buy the program; rather, they rent it. The program is a usage-based subscription that may be purchased on a monthly or annual basis is what the majority of SaaS providers provide. 

Although it differs from the typical way of buying software, SaaS can offer a number of advantages in the business world. Many software suppliers are providing SaaS features that potentially result in significant advantages as cloud computing is increasingly integrated into business operations.

SaaS has four benefits: 

  1. Cost – SaaS can result in significant cost reductions for a variety of factors. First and foremost, it removes the initial costs of purchase and installation as well as ongoing expenses like maintenance and updates. SaaS apps can be readily downloaded and maintained without having to invest a significant amount of money in physical installations.
    Since SaaS gives access to pricey, powerful software that might otherwise be inaccessible through traditional purchase methods. Additionally, the subscription-based approach avoids the high financial risk associated with more expensive software.
  2. Time – Time is money and SaaS can save both. Installation for many SaaS services is as easy as getting online and getting a login.
    By doing this, the additional hours and downtime that could have been required to replace traditional software are eliminated. Last but not least, SaaS solutions typically have an easier learning curve, resulting in rapid adoption throughout your workforce.
  3. Accessibility & Scalability – The pay-as-you-go business model of SaaS offers amazing flexibility and possibilities. Your usage plan can easily be changed because the program is externally hosted by a provider. Subscribers can also quickly use the program from any location with internet access thanks to web-based use.
  4. Compatibility – Updates can take a significant amount of time and money when installed using traditional software installation techniques. Even worse, version differences among your employees and members might cause compatibility problems and unnecessary delays. However, SaaS subscribers only need to log in to access services that have been upgraded, making it easy and inexpensive.

If you are interested in learning more about Software as a Service and how it can help your business, contact JENLOR today for a free consultation.