One of the primary drivers of the dramatic digital transformation across industries is the Software As A Service (SaaS) model. According to reports, the SaaS market will be worth $623 billion by 2023. Businesses are increasingly embracing SaaS due to the numerous advantages it offers. Growth was fueled by SaaS development services, particularly in the small and medium business sectors.
What is the Need for a Collaborative Remote Working Environment?
The COVID-19 pandemic has completely changed the way businesses operate. The lockdown restrictions forced all corporations to look for remote working environments. Companies that failed to adapt quickly are no longer functioning because the global pandemic has greatly wreaked havoc on business logistics. According to a Deloitte survey, 93% of businesses are working towards moving to the cloud.
The need for a remote collaborative working environment and the benefits of SaaS solutions have driven corporate giants, such as Salesforce, Oracle, Zendesk, etc., to adopt SaaS solutions. Every industry, including logistics, manufacturing, IT, restaurants, finance, etc., is moving to SaaS solutions, bidding farewell to pen and paper-based transactions.
SaaS For Small Businesses
The SaaS is a cloud-based software model where a third-party application hosts the essential software. Small businesses needing those applications can pay yearly or monthly subscription fees to gain complete and personalized access to required applications. There is no need to worry about licensing or updates because the SaaS partner will ensure 100% uptime of all enterprise applications. In addition, small business employees can access these cloud-based applications directly from their office computers as if the applications are available locally.
The SaaS model is not entirely new, but it has undoubtedly gained a lot of significance in recent years. Small businesses can quickly adopt SaaS due to the low implementation costs. There is minimal capital expenditure, and SaaS solutions offer better features than traditional on-premise solutions. In addition, when businesses expand, the in-house IT team may need help to boost the IT infrastructure to meet the growing business needs. SaaS applications bridge the gap by integrating with other applications, thus expanding the capabilities.
Top Reasons Why Small Businesses Need SaaS
Between 2019 to 2020, the SaaS industry grew by 18%. Also, by the end of 2021, 99% of the companies had started using one or more SaaS solutions. The widespread SaaS model has 14 billion customers globally because the model is hugely beneficial for enterprises.
Improved Business Productivity
SaaS applications are available anytime and anywhere. With granular access control management policies, organizations can establish proper access control so internal teams and external stakeholders can communicate and collaborate easily. Irrespective of where the employees are located, the SaaS model makes the applications available all the time, increasing business productivity. In addition, innovative features are readily available, and businesses can adopt the latest technologies rapidly.
Reduced Operational Costs
The lower cost of the SaaS model is one of the prime reasons for its increase in popularity. Small and medium businesses that don’t have significant liquid capital can benefit significantly from SaaS, which requires minimal capital investment. Organizations can also save on automation as the SaaS model eliminates upfront charges.
There is no need to pay for separate licensing and upgrades because the SaaS partner can handle all that. It also gives the flexibility to use only the applications needed instead of purchasing an entire application suite.
Improved Scalability
Small businesses should always look forward to seizing the opportunity to grow. The IT infrastructure and application environment should also be ready to support the growth and changes. SaaS applications provide a flexible approach, allowing organizations to access applications anytime. The improved flexibility enables small businesses to make dynamic business decisions.
The cloud-based model is highly scalable, and the application infrastructure can be expanded dramatically without effort. Huge volumes of data from multiple sources can be easily accessed using SaaS solutions. Applications across multiple platforms can also be used efficiently.
Readily Available Innovations
Businesses can flourish and grow if they can use innovative and powerful technologies. Thanks to the SaaS model, modern and resource-hungry technology, such as machine learning, artificial intelligence, and big data analytics, are now available for small businesses. As a result, small businesses can use innovative solutions for daily operations without financial or advanced technical skills.
Zero Maintenance Cost and Effort
Setting up on-premise IT infrastructure increases IT and maintenance costs. Because the SaaS partner is responsible for maintaining cloud infrastructure, this overhead is eliminated. There is no need for periodic server and hardware maintenance, which saves money for small industry players. Cost savings can be reinvested back into the business. Small businesses should ideally only invest in core business technologies.
Read the original blog to learn more about the other top reasons to adopt SaaS model for your small business.
Originally published at https://apptread.com on December 1, 2022.
