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5 Reasons SaaS Software Solutions are Right For You

March 3rd, 2021 by Ross Lasley

OpenStudio - What is a Software as a Service (SaaS)?

The software industry has been rapidly changing over the last several years. The most significant change has come in adapting software as a service instead of selling perpetual licenses with maintenance agreements. Microsoft was one of the first companies to do this with Office 365. SaaS allows software companies to update their products and keep them secure continually. The growth has been astounding. 80% of companies are already using at least one SaaS solution.

Microsoft is the largest SaaS provider in the world. Other large SaaS focused companies are Salesforce, Workday, and ServiceNow. For decades, companies like Oracle and Sage that have been stalwarts in the software industry are moving to SaaS models. Companies can no longer remain complacent with a product and must continuously upgrade and update it. SaaS solutions are going to continue to grow for the foreseeable future.

  1. Security of your solution

    One of the main reasons software companies have moved to a SaaS model is the threat of cyber-attacks. Companies are always having to patch and upgrade their products to keep them secure. Companies that have moved to a SaaS solution can keep their products upgrading constantly.

  2. Minimal Upkeep

    Moving to SaaS solutions means you can start to eliminate on-premise servers and no longer maintain them. SaaS can help reduce costs from the monitoring and maintaining the server and lower future capital costs of buying new costly servers. SaaS will free up time for your employees to do more productive work too. In the past, software often had bugs and caused problems when other parts of the businesses upgraded. Maybe you had a use an old version of an operating system or not upgrade your servers. SaaS solutions are continually being updated in the background and rarely cause any issues for your employees.

  3. Mobility

    SaaS solutions give you access anytime and anywhere. You will no longer have to worry about having site-to-site connections or VPNs when you are not in the office. SaaS gives you access to your software anywhere you can access an internet browser. That is a massive benefit in today's environment.

  4. Low Risk

    In the past, when you were buying new software, there was a substantial up-front cost. A failed software implementation could severely hamper a business's ability to grow, and even in extreme cases, sink a company. Now with SaaS solutions, you have a much lower up-front and implementation cost. The cost is distributed monthly or annually, and many times the commitment can only be for a year. SaaS can allow a business to quickly move on to a solution that works if there are issues with the chosen software.

  5. Scalability

    One of the significant parts of SaaS solutions is how scalable it is. You can add licenses for new employees most of the time with just a few clicks of a button. Then they can log on from their web browser. It also makes onboarding new employees much cheaper because they no longer must buy expensive new licenses for every employee. You add and subtract licenses as employees come and go. SaaS once again lowers your risk.

The SaaS market continues to explode. The market was 141 billion in 2019 and is expected to be almost 160 billion in 2020. That is up from just 63 billion in 2014. SaaS solutions' many advantages can help you grow your business while lowering the risk to your company. We are going to continue to see software companies move away from the perpetual model. The next explosion will be in the SaaS mobile market and make accessing your company's software even more effortless.

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Posted in: Business Technology