Traditionally to use software we’ve had to make a one-off purchase and get hold of a physical install disk (or download a file). We then have to install it and troubleshoot any issues, then do it all again when the software gets upgraded.
Software as a Service (SaaS) is a software delivery model which delivers many applications through a network. In other words, you access the software online and all the hard work of installation and maintenance is taken care of behind the scenes. In return you pay a monthly fee and receive both full use of the software and the service.
Most companies are used to using the internet to gain access to information. This makes SaaS popular with businesses, as they simply use the internet to access their applications. Companies are looking for innovative ways of lowering the costs and maintenance associated with running a business. SaaS certainly fits the bill and here are some of the reasons why companies use this service.
Why Do Companies Use SaaS?
Pricing Model
SaaS uses a subscription pricing model which is typically monthly or annually. This is appealing as traditional software packages tend to charge a large outlay; then additional fees for ongoing support. Companies aren’t locked into a contract so they can easily change providers when they receive their renewal. This makes SaaS providers more competitive, providing companies with a great service for a great price.
Rapid Engagement
Every connected device can have access to the same information at the same time. This means you can quickly and easily access information anywhere, at any time. Companies run more efficiently when everyone is kept in the loop.
No Infrastructure
All that’s needed to get started with SaaS is an internet connection. This means companies can cut out the hardware and software for their business to run. This allows companies to adapt SaaS to suit their business’s needs, by only adopting the applications they will use. Companies can greatly reduce their costs and maintenance by using this service.
Fully Maintained
This is probably one of the best advantages of SaaS over the traditional software model. The SaaS provider does all the upgrades and updates so that the end user doesn’t have to. This not only saves them time, it also reduces hassle and additional IT costs.
Fully Supported
SaaS is fully supported as this is included in your subscription and any problems are directed to the provider. This reduces the IT costs involved in running a business.
No Upgrade Costs
Hardware and software quickly become outdated costing companies time and money. The company simply pays their subscription and as they are accessing via the internet, any upgrades will be covered by their provider.
SaaS is a great way to connect companies with access to applications on any device. It reduces their IT costs and they can quickly get started with an internet connection.
Examples
One of the most popular examples of SaaS is the software giant Adobe’s changed strategy. Only a few years ago people wanting to use software like Adobe’s Photoshop would have to purchase a disc at high cost, insert it into their machine and run the installation process. They’d then enter their unique licence key to ‘activate’ it and start trying to use the software, only to learn that the next version of Photoshop was coming out in a few months and they’d have to pay that large cost again if they wanted to upgrade.
Adobe realised it could encourage a wider, more active user base if it adopted the SaaS model. Instead of paying hundreds of dollars for one piece of software with no updates, you now sign up to their Creative Cloud service for a lower monthly fee. In return you gain access to all their Creative Suite applications (including Photoshop) and other services, and are always running the latest version. It still requires downloading files since they are huge applications, but it’s far simpler than the traditional method.
Other popular examples today include accountancy and book keeping applications like Freshbooks and Xero, and Microsoft Office alternatives too.
Here at Clue we enable our website clients to update their own websites through our proprietary software Mintox, which is also based on the SaaS model. We take care of the installation, any security, maintenance and upgrades, making life easier for those wanting to get on with their actual business. Contact us if you'd like to find out more!