Since the early 2000 Software as a Service (SaaS) has been a cost effective alternative to many technology businesses where they have to build their own IT infrastructure, installing the software themselves and then employs the IT department to handle all these things. In addition, 41% of small scale businesses these days are investing their money in SaaS.
Moreover, SaaS has been there for a long time but still, many businesses think about and questions whether SaaS is a viable option for them or not. According to the survey by RightScale, it was found that 32% companies considered that they lack knowledge and resources related to cloud computing.
In addition, 30% of Microsoft’s revenue is generated from cloud computing solution in the Q3 of 2016. Popularly, SaaS is most popularly used by businesses to store their files.
In this post, we will talk about business benefits of SaaS product development services and how it can be utilized by various businesses.
Here are the business benefits of SaaS product development services mentioned below:
1. Initial Investment for SaaS is not Huge
There are no huge upfront fees because SaaS is operated on pay-as-you-go method. Moreover, there are reasons why SaaS is preferred by many small scales and start-up businesses who do not want to invest their money in CRM solution when it is considered critical for them. Therefore, it means that it can be treated as an operating expense rather than an investment.
2. SaaS Can be a Money Saving Option
It is one of the main advantages that SaaS can be a real money saver. Moreover, when we compare the costs of SaaS CRM model to the cost of buying a software, initially SaaS may still look expensive. But, when taking into account all the money spent on the hardware to run that particular software SaaS will still cost cheaper when compared.
3. There is no Pirated Version of SaaS
SaaS vendors cannot sell the license of your software to others and it can only be given to your customers on the basis of pay-for-use or some subscription based on user metrics only. Moreover, in all SaaS models cloud is known as a platform for data which can be accessed by paid customers only.
Therefore, it reduces the risk that anyone can pirate your software as you are the one who is handling servers which host your data.
4. SaaS can be Easily Expanded to Foreign Countries
Businesses do not need any marketer or re-seller to help in the distribution of SaaS business model. Therefore, your product being an internet based application the only choice left for you is to market your product on the internet.
5. SaaS Provides High Level of Security
Moreover, SaaS have multiple servers which are scattered in multiple geographical locations and is automatically backed up by ensuring the high level of security as well.
6. Automation of Service Delivery
The best thing about operating SaaS business model is its automation. The system works every time and with it, businesses can get daily new clients at each moment of the day. Moreover, there will be many bunches of clients that will enter your website and buy a subscription plan without asking any question. Therefore, it means that you still earning revenue while you are asleep.
7. Effects of Network
In the technology industry, people are mostly influenced by word of mouth marketing. If more people will use a software more prospects will lead to its growth. Decisions of customers are totally based on people’s recommendations, the influence of bloggers and sometimes opinions of leaders.
8. Easy Level for Scalability
The last benefit for SaaS business model is that it can be easily scaled up. Meaning that if your business wants to increase the number of CRM users. Therefore SaaS business model does not take the time to scale up the number of users as it is tough to scale them down.
As discussed above are some of the few benefits for businesses to use SaaS product development services for themselves. Moreover, instead of buying a software and buying a new computer machine to run it SaaS is comparatively cheaper than this option. SaaS is mostly used by small scale and start-up IT businesses so that they can provide their services to its customers.