Is Saas the best cloud based business model?

What is Software as a Service (Saas)?

Software as a service (Saas) is a cloud-based software distribution model offered to customers by a cloud provider. Software, infrastructure and platform services form part of the main pillars in cloud computing software models. Saas provides unified communication across business and office suits. This on-demand software model capitalises on low costs and compatibility with other providers.

Firstly, some examples of Saas businesses include Microsoft 365, Zoom, Netflix and Shopify. Secondly, Salesforce is an example of a leading content management system incorporating Saas. Thirdly, Salesforce offers contact management; workflow creation and task management to manage customer relationships for enterprises. Furthermore, the advantage of Saas is that it can be marketed to both businesses and consumers. Therefore, the efficiencies of having a hosting provider streamline the software licencing and delivery model. As a result, smaller companies can now easily enter the market with low barriers to entry. In conclusion, Saas empowers suppliers to network opening avenues for growth and access to new markets.

How does it Saas work?

For the platform to exist there must be a software provider acting as a hosting platform. Moreover, this requires a database and network that enables the application to be accessed via a web browser. Companies and users wanting to use the application can pay a subscription fee. Therefore, this will provide them with access to different tiers of features within the application depending on their billing subscription.

Saas Pros

• Database: Saas does not require a large database to store all the information on your own computer.
• Hosting: You can use your hosting server to provide hardware support and software licencing to subscribers.
• Subscription: Given that users subscribe to a monthly expense they can budget their outgoing easier.
• Upgrades: The hosting provider completes platform updates reducing the burden of IT maintenance costs.
• Integration: Saas can integrate with applications with a similar software providing synergies across platforms.
• Cost Effective: No hard software is required on the cloud application creating a more cost effective solution.
• Scalable: The amount of services required can be adjusted based upon the billing amount

Saas Cons

• Less control: Updates are done externally, therefore relying on an efficient team to maintain the application.
• Disruption: Irregular updates and breaches can cause a poor user experience and feedback of the application.
• Security: The cyber safety and security of customer data is at risk being on the Internet exposed to hackers.
• Lock-in contracts: Vendor agreements can prevent the ability to easily switch and transition between vendors.
• Internet: An internet connection is essential making poor signal a missed opportunity to explore uptapped markets.

Microsoft Office 365

One of the leading programs is Microsoft Office 365 offering premium home office software. The platform offers Word, Excel, PowerPoint and One Note to meet your personal productivity goals or grow your business. Furthermore, One drive offers a massive 1 terabyte of storage for premium users. The functionality to operate across a range of different devices. Offering the Microsoft suite on Mac or Windows makes it a cross-functional platform and market leader in Saas cloud technology. You can also save up to 20% on Microsoft products including Surface pro, surface headphones and earbuds. As this is an affiliate link I would receive a small commission on the purchase.

Monetise Saas

The Saas application can easily be monetised through its subscription-based model. However, the free service only offers limited features to customers. The reason being is that the aim to draw customers to the platform. Once the users wish to access more premium services they can opt-in for greater features. The option to pay a flat annual fee or monthly instalments provides the flexibility of payment options to end-users. New applications such as Afterpay provide greater options to enter payment arrangements with the provider. One of the other biggest revenue streams includes paid advertising on the platform. Running ads or offering a premium service is an additional way to monetise the platform. The cost of storing data can also be passed onto the consumer. Therefore, this ensures the consumers are paying for the right to use the services of the platform.

Summary

In summary, software as a service (Saas) provides cloud technology-driven applications available to customers via the Internet. The pay-as-you-go option offers low cost, scalability for businesses wanting to connect everything from sales and marketing to financials and customer service. Saas offers personalised and connected processes, instant access to data and enhanced productivity. These features make Saas a leading choice for businesses wanting to rapidly scale and grow. To learn more about e-commerce and businesses built well positioned to leverage cloud technologies have a read of the dropshipping review.