In order to survive the ever-competitive markets businesses all over the world continuously try to reduce their costs and improve their efficiency. SaaS is the perfect step towards this direction.
SaaS stands for Software as a Service: it means you can use enterprise-level software without having to buy it and install it locally. You can simply log onto a particular website that lets you use the business solution whenever you need to. And this is not the only benefit; you can pay according to your requirement. This actually opens a floodgate of opportunities both for users and vendors.
The Internet is all about numbers: providing low-cost services to a greater number of people is far more profitable compared to providing high cost services to a select few. SaaS enables vendors to provide the same services (application, actually) to businesses of various sizes without much overheads or cutting losses. This is because most of the SaaS-based applications are highly modular and most of these modules can be independently used. For instance if you’re looking for only a couple of features that you find in a standard ERP system you don’t have to buy or lease the entire solution; you can simply pay for the module as you want to use and get going.
The central feature of every SaaS-based business application is that it resides in the cloud. That means all these applications are accessed via a remote server. A minor snag is that you always need to have an Internet connection in order to use a cloud-based service. But every device these days comes with connectivity features and this is no problem. The overwhelming benefit on the other hand is that you don’t have to be at the central location in order to access your applications and data. From wherever you can log into your dashboard you can carry out your business operations just as if you’re sitting in your own office in front of your own computer.
Additionally, a SaaS-based application, as far as you as a user are concerned, grows with your business requirement. It is always evolving or de-evolving. It is continuously scaling up and down according to the fluctuations of your business. With the increase and decrease of your business you can also increase and decrease your IT costs. But let us not think about a decreasing business. As you expand your business you require more features and you may also need more and more employees to use the system. You can do this any time without incurring great costs. Want to increase the number of employees using the system from 20 to 30? Simply start paying for those extra 30 employees and go on doing your business as usual. Want to add 2 more modules? Log into your dashboard, add the modules, pay for them and start using them.
This is also called the “long tail” way of providing cutting-edge business solutions to even small-scale businesses and organizations. Using the same set of solutions a particular vendor can provide unlimited combinations to a multitude of customers without forcing them to pay you through their noses.