Is SaaS For You? Pros and Cons For Businesses

saas Pros and Cons For Businesses

If you’ve ever heard of software-as-a-service (SaaS) and you’ve been wanting to learn if you should apply this to your business, then you’ve come to right place. It’s not new for others in various industries to have heard about SaaS and be a bit confused, given how SaaS is still a relatively new concept that’s being applied to businesses. This article will explain if SaaS is for you, and its pros and cons for businesses.

Pros and Cons For Businesses saas 1Those who are hesitant investing in SaaS aren’t without reason to do so. In fact, while software companies tend to grow faster than any other company in other industries, software companies that only grow at 20-percent per year have 92-percent chances of “ceasing to exist” in a few years’ time. Fully integrating SaaS into your system and not having it work is surely a scary thing.  However! SaaS businesses that do make the cut tend to grow the fastest in revenue and in team size. In fact, SaaS companies tend to only spend $1.18 to acquire new customers via their products, but the same customers can return revenue almost three times as high – an average of $3.9 for every $1 lost. This can make the decision to “switch” a bit confusing and divisive, but this list will tell you the pros and cons you have to consider:


Pros: SaaS Can Be Accessed Via The Cloud

SaaS is essentially a software distribution model where programs and software are made available to customers in the cloud via the internet, normally through subscription basis. SaaS is the sibling of platform as a service (PaaS) and infrastructure as a service (IaaS), and have similar working processes. However, SaaS in its entirely simply removes the need for businesses to rely on complicated software and hardware to be able to do their duties. Just a press of a button and a simple transaction can make an efficient service available for usage.

  • Cheaper, cost-friendly service, as SaaS generally doesn’t need any hardware costs and there aren’t any setup costs either. Applications are more or less ready for access once subscription has been validated. SaaS removes the need to purchase a ton of software and hardware for installation, as such accessing the SaaS offering can easily be as a press of a button. This allows you to solely focus on the tasks at hand while allowing the software itself to do the heavy-lifting.
  • Customizable and flexible, as you generally pay for what you see. The subscription-based models SaaS offerings allow users to customize their experience. Things such additional storage and features can be accessed through tier-based payments, making additional, and less, features become available by demand. Given SaaS offerings are also offered on a monthly subscription basis, users are free to cancel whenever they want, making it much easier to take in customers without the hassle of going through a lot of processes of uninstallation.
  • Cross-device accessibility and on-the-go, as SaaS offerings are generally compatible with most devices on the market. This means you simply need an account, an internet connection, and a compatible device with the SaaS offering in order to work. You don’t need to worry about not being in the office, which gives you a lot of flexibility when it comes to your particular work tasks.


Cons: SaaS Is Not Extremely Flexible

Of course, even though SaaS has a lot of advantages, it has a few drawbacks of its own. SaaS, given it relies on a third-party provider for its availability, will have to rely on the third-party provider in order to keep profiting. Other issues include:

  • Reliability of the third-party provider can be a potential issue, given the vendors themselves must be able to keep the software running to the expectations of the provider. This can be hassling if a lot of companies rely on the business.
  • Accurate report and billing, as the bulk of order processing will have to be taken in by the vendor. Anyone who may have complaints on the service will have to rely on the vendor for assistance.
  • Security and privacy, as providers are also responsible for ensuring there’s a secure environment to facilitate the usage of the SaaS offerings.


Conclusion: It’s About Matching Methods And Expectations

Should your business plan to transition towards SaaS, always remember that this shouldn’t be a decision that should be done out of “wanting to follow the trend.” Remember that a lot of businesses have different practices, objectives, and goals – even in the same industry. If SaaS has been part of your consideration, it’s important to understand how SaaS can be used by businesses, how it affects them, and how this can impact their future depending on a variety of factors. Learning these, and trying to assess your potential approach towards SaaS, can at least help determine whether or not the transition really is for your company – and if it is, how soon should you make the implementation.



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