Using Software as a Service (SaaS), companies can access a variety of software applications directly from the cloud. This gives them agility and cost advantages.

Software as a Service means accessing web-based applications in the cloud over the Internet. Well-known examples are standardized applications for e-mail and collaboration such as Google Mail, Office 365 or SharePoint. There are also specialized applications for e-commerce, customer relationship management (CRM) or enterprise resource planning (ERP). The use of storage solutions such as Dropbox or content management solutions such as WordPress also falls into the Software as a Service category.

Benefits of SaaS Products

Here are the 6 key benefits of a Software-as-a-Service product compared to traditional on-premise (server run applications) software:

1. Quick Deployment

One of the biggest differences compared to traditional software is that a SaaS product does not require a complex installation, since it is accessible over the internet. This eventually means that no IT support is required for setup and maintenance at the end user. After the purchase, the product is ready for immediate use. However the end users may often need training to use the software.

But SaaS product companies offer comprehensive training. However in many companies, customization may be needed depending on the business case. And in such scenarios, specialized skills are needed at the customer’s side. Although complete training materials and support is provided by the vendor.

2. Accessible at any time, from anywhere and any device

Since SaaS applications are web-based, internet access is the most basic requirement. Most products are therefore optimized for mobile devices and can therefore be used practically while on the go as well or using tablet devices.

3. Security

The SaaS software vendor is responsible for ensuring that the software is accessible 365*24*7 and is responsible for providing the functions. The companies also guarantee the security of the data by means of encryption standards, such as 256-bit SSL encryption or ISO 27001 certifications for data centers, which corresponds to the specifications for security in information management systems.

4. Lower Costs

Since there are is no hardware to be purchased or maintained by the end users, the cost of SaaS are lower compared to traditional applications. There are no additional IT costs to maintain the software, making the SaaS model very economical for small and medium businesses.

The costs usually depend on the usage. With the typical SaaS price model, the license is not purchased like a traditional software. But the service is usually rented by a monthly amount. And the pricing depends on the product users/storage/features etc.

5. Continuous Updates

The provider not only takes care of the maintenance of the software, but also of the continuous development of new features. And these new features are tested during the development of the feature by the vendor and are automatically upgraded in the tool.

The end user benefits directly from these upgrades and most importantly there is no download of any software is required at the customer location. Vendors also provide options to their customers requesting them for any new features that should be implemented in the tool. And based on the requirements from several customers, new features are implemented.

6. Free Trial

Most SaaS providers offer free (trial) access to their software. Companies can test the features and benefits by trying out the performance and decide whether the product delivers as per their requirement and is tailored to their needs.

Author Bio:

Hi, I am Nikesh Mehta owner and writer of this site.

I’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business.

I can be reached at nikeshmehta@allonmoney.com. You may also visit my LinkedIn profile.