What Is SaaS: Advantages and Disadvantages
Nowadays, the software as a service (SaaS) market is increasing and bringing a bunch of digital changes to businesses of all kinds. A lot of companies are picking this model for long-term and easily-expected profit. Let’s see what the statistics says:
- The global SaaS market will reach 380 million U.S. dollars by 2021.
- The global public cloud SaaS market is forecast to reach 157 billion U.S. dollars in size in 2020, more than doubling the market size in 2014.
SaaS can provide great advantages for most businesses, primarily in costs and flexibility. However, the disadvantages of SaaS (such as a lack of control) are considerable and should not be ignored. In this article, we will figure out what SaaS is, and the pros/cons of SaaS.
Definition of SaaS
Software as a Service, also known as SaaS, is a method of software delivery and licensing in which software is accessed online via subscription, rather than bought and installed on individual computers. Thanks to the internet, SaaS is available to users all over the world and from every device.
SaaS apps are typically accessed by users using a thin client, e.g. via a web browser. SaaS has become a common delivery model for many business applications, including:
- office and communication software
- payroll and accounting programs
- customer relationship management software
- HR management software
- enterprise resource planning programs
- corporate performance management suites
- mobile applications
SaaS has been incorporated into the strategy of nearly all leading enterprise software companies. Why are SaaS apps popular among businesses and service providers? Why do tech companies go SaaS?
SaaS gives many benefits over the traditional models of business software installation, and here we have listed some pros of SaaS development:
- Lower Cost
One of the most important advantages of using the software as a service for businesses is cost. You don’t spend money to buy and install the entire software; the software is rented from a third-party service provider. SaaS is generally subscription-based and depends on the usage of the infrastructure.
All you need to access a SaaS application is a browser and an internet connection. Today, it is available on many devices and from anywhere in the world, making SaaS more accessible than the traditional business software installation.
Whenever you want to expand your business and add new users, there is no need to buy additional software licenses or server space for the new users. All you need to do is to upgrade your existing plan or subscription for the SaaS application.
4. Effortless Upgrades
The SaaS providers deal with hardware and software updates, it is one less burden for you to bear as it removes a significant workload from your in-house IT department.
5. Increase Security
SaaS providers invest heavily in security technology and expertise, so SaaS increases your security.
Disadvantages of SaaS
At the same time, the SaaS model has some cons, including:
- Loss of Control
The SaaS providers manage everything, making you dependent upon the vendor’s capabilities.
2. Low Performance
A browser-based application running on a remote data center may run at somewhat slower speeds than on-premise client or server applications. So, companies need to invest in a fast and reliable internet connection to negate this factor.
3. Limited range of applications
While SaaS is becoming more popular, there are still many applications that don’t offer a hosted platform.
The SaaS market is taking off in a big way, with startups exploring multiple niches in numerous software categories, established players busily acquiring and integrating the most promising new services.
Overall, SaaS offers a wide range of benefits that support the interests of both providers and users. But at the same companies should remember some of its drawbacks.