SaaS or Software-as-a-Service is a model of delivering access to software over the internet. This means a company doesn't have to take a license to use the software or app and has to subscribe. In addition, the software is located on a cloud system or an external server and not on-premise of the company. The traditional software had to be hosted on the premises and involved a lot of cost for installation, management up-gradation, and security.
SaaS has to offer several benefits to Small and Mid-sized Businesses (SMBs). But, first, let us understand the critical features of SaaS.
Key Features of SaaS
It can be accessed using a web browser from anywhere around the world and from any computer, not just the computers in the office. Therefore, companies allowing employees to work from anywhere can take advantage of this feature. All the employee needs are a device and a reliable internet connection.
Subscription can be taken as per the company's needs, and no license is required for every individual system or even for the company. Subscriptions may be on a monthly or yearly basis. A customer may choose a plan depending on its affordability. The traditional software needs a license which must be purchased upfront.
Many SaaS providers allow you to pay for the service when it is used and not when it is not. Certain products can even be used on a trial basis and finalized later.
No infrastructure for data storage and servers is required. All of that is managed by the SaaS provider. A significant factor contributing to a company's cost is a structure to save data. This can be done away with by using SaaS.
SaaS providers take care of the security aspect of the data. As a result, companies do not have to worry about hacking and form an IT group to keep their data secure.
Upgradation of the software usually takes companies to purchase packages for the purpose. However, in SaaS, the up-gradation is done centrally by the provider, and its benefits can be reaped at minimal or no cost by its customer.
SaaS solutions can be scaled according to a company's changing needs. Scaling is both up and down when needed. In most cases, you pay according to your use.
It is easy to integrate SaaS with other SaaS offerings. Another server or software need not be bought, as in the case of traditional software.
How Small and Mid-size Businesses (SMBs) Work
An SMB is a business that has a constrained budget and a limited workforce. They are often differentiated from big companies by their annual income or turnover. The number of employees also defines how big or small a company is. Such companies are usually start-ups or in a growing phase. This means utilization of resources to their maximum and value for money are very important. There cannot be a single employee who is not working towards improving overall productivity. Here comes the role of SaaS. Let us see how SaaS can have an impact on SMBs.
Importance of Using SaaS by SMBs
The products or services designed with the help of SaaS can be made available in the market much faster. This is made possible by the rapid data access, management, and implementation as compared to the conventional methods using traditional software.
The Future with SaaS
SaaS is rapidly gaining popularity with SMBs due to the reasons described above. It will likely become a norm to use SaaS. The flexibility and convenience of using SaaS make it a force to reckon with. Some types of products that can use SaaS are:
SMBs can primarily benefit from these and numerous other applications based on SaaS. Several small businesses are already entirely based on SaaS. As we mentioned above, the efficiency and productivity of a company can grow manifolds with the use of SaaS. The money saved by using SaaS instead of traditional methods can very well be used in other aspects of the company's growth.
The possibilities with SaaS are still being explored, and several innovative products have hit the market. However, the impact of SaaS on SMBs has been positive so far and is only getting better.