What is SaaS and Why Is It Important?

If you’ve been using Dropbox, Zoom, or Google Workspace, — which I’m certain you have — then you’re already a SaaS customer.

So what’s SaaS, you ask? It’s basically a software distribution model where third parties host and manage their products so customers can access them using browsers and apps.

Unlike traditional software where users needed to download and install stuff on their computers, SaaS provides interfaces that users can interact with via a web portal, while their data is stored on the cloud.

But Why Is Everybody Talking About It Now?

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From the user’s perspective, you can tell how convenient SaaS really is. They don’t need to install, maintain, or download updates with each new release.

But you… the business owner, you have a lot more to gain from SaaS. Let’s discuss some reasons why people are eyeing this business model today.

1. Yields More Profits

SaaS models have the potential to generate maximum profits compared to on-premises systems. That’s because your customers will buy from you more than once in a lifetime.

The models also reduce the costs of maintenance as you don’t need to hire many workers; a company that needed 2000 members to run can now operate with just 20-100 people.

2. Faster and Cheaper To Launch

SaaS models reduce time wasted in learning complex management, IT, or procuring skills to handle on-premises software. You don’t even need extra hardware for your business.

It’s also possible to deploy your business in multiple states at no extra cost. This will increase your number of customers, and you don’t need to set up offices in the respective states or countries.

In addition, it’s easy to maximize service performance as customers do not rely on your internet speeds or power supply. This makes your business more stable and easy to access.

3. Enhances Quality Service

Last, it’s easy to design systems tailored to meet your customer’s needs and give immediate feedback as they can get system updates in real time.

You can also give users the opportunity to test the latest developments and collect surveys to get suggestions on what to improve.

Since user activity on your website is stored on one server, it’s easier to monitor user metrics and behavior. This makes it possible to provide personalized services using artificial intelligence.

Conclusion

Cloud-based operations make SaaS models more desirable. Running a business is faster, more organized, and more profitable. If you’re currently building on-premises software, it might also be smart to try a SaaS version and see how that fairs. Compare the two models and if both are working for you, try both.

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