Recently, many B2B companies, even small business, have discovered the amazing benefits of SaaS for a management system. The SaaS, with no surprise, is expanding rapidly. According to Forrester Research, analysts estimated the average market value in SaaS growth at 56.2% annually and forecast that it will continue to burgeon by 2020 at a speed of 18.9% per year.
Why does the SaaS business model attract entrepreneurs to follow? In another word, why many companies are more willing to choose SaaS over on-premises apps?
This article will show you the overall picture of SaaS and The Benefits of SaaS to B2B Business
What is SaaS Software?
Software as a service (SaaS) is a software deliver centrally hosted applications over the Internet—as a service. The provider delivers software based on the set of code and data that is usable for many business models.
SaaS applications are sometimes called web-based software, on-demand software, or hosted software. In effect, SaaS applications run in the cloud, maintained by its creator and not hosted on your premises.
Instead of installing and maintaining software, you simply access it via the Internet, freeing yourself from complex software and hardware management. The provider manages access to the application, including security, availability, and performance. SaaS cloud computing applications are usually accessed by users using a thin client via a web browser.
Why SaaS? Top benefits of SaaS
Here are advantages of SaaS that makes many companies willing to remove all on-premises and move to SaaS:
Save Money with SaaS System
The top benefit offered by SaaS is financial savings. In most cases, you only need to pay for the subscription that has already included upgrades, maintenance, and customer support.
Instead of provisioning internal resources to install the software, the vendor provides APIs and performs much of the work to get their software working for you. All the costs associated with the server and infrastructure are covered by the SaaS providers. So that, using SaaS can save a lot on the human resources that are usually required for servicing the application and on overall operating expenses (OPEX).
In addition, the financial benefits of SaaS can also help the SaaS provider themselves. By offering the software as a service, instead of a tangible software product (such as CD or downloadable application), SaaS providers are heavily combating software piracy and taking back some of the $59 billion that is lost globally each year due to pirated software.
The cloud Software as a Service not only offers a more affordable option to users, while at the same time expanding the income derived from subscriptions.
Save Time by using SaaS platform
Different from other traditional softwares, the SaaS model is already installed and configured. All you need is a web browser and internet access, and you’re ready to go.
Users can provision the server for the cloud. Then, just for a couple of hours, users can have the application ready for use.
This saves you a huge amount of time for installing or configuring and decreases the number of issues that you can get during deploying. Your company can immediately gain benefits without long waiting times or steep learning curves
No technical knowledge required
Unlike traditional software with a lot of disadvantages in technical adoption, SaaS model will make your work easier.
Since the vendor hosts your SaaS model, they will handle all the technical aspects, including maintenance and frequent upgrade, so that the SaaS model can meet the level of agreements with your business and keep the data highly secured.
Another common benefit of most SaaS applications is the ongoing user and technical support. While you may not see this feature on some SaaS applications, more and more companies are offering this extra support. The vendor manages these issues as part of their core competencies.
In addition, because the SaaS software is accessible via familiar web browsers, you and your employers do not need to put too much time and effort in adapting this new technology.
Everyone loves working more than training. It’s vital to have an intuitive order writing an application that all users are comfortable with.
Easy to customize
For systems that collect data in every second, such as ERP or CRM systems, scaling the application is very essential. That is why SaaS can bring your big benefits.
The cloud platform and API connection allow SaaS applications to scale up when receiving an increase in usage, without affecting the performance of the application. Therefore, the vendor can easily support customization not only for internal applications like ERPs or CRMs but also to other SaaS applications from different providers.
There’s no need to spend money on server capacity or software licenses, or buying some other software. Simply enable a new SaaS offering in terms of server capacity planning, the SaaS provider will do all for you.
Stability and Predictability
With the SaaS business model, you can predict the cost both for the subscription and to some extent, the administration. It is much easier to predict revenues based on regular subscription fees. Even as you scale, you can have a clear idea of what your costs will be. SaaS software allows you to monitor all incoming invoices, contract expiration of particular clients, changes of subscription plans etc.
The company with the SaaS model will get accurate budgeting, which saves costs of internal IT to manage upgrades and address issues for an owned instance. Besides, the risk of a sudden revenue decrease is minimized, so it would be much easier to develop your marketing strategy.
If your business has used on-premise systems for a long time, you would have to pay an extra fee for more rooms for your servers, hardware and the in-house IT team. However, in the case of cloud-based systems, no extra physical space is necessary, and server security is in the hands of the SaaS providers, who are generally heavily secured with biometric access devices and state-of-the-art hardware for commercial use.
While some IT people may worry about the risk of data loss in the cloud, SaaS vendor has a much higher security than the enterprise itself. In SaaS models, the cloud becomes a platform for data that is accessible only to paying customers. It declines the risk that someone would pirate your software, as you manage servers that host your data.
In addition, the data is automatically backed up by the SaaS provider, giving you additional security. Because of the data center hosting, you will get the benefits of protecting your data from disaster recovery.
For example, most SaaS providers run two geographically separate data centers which contact the I.T infrastructure to deliver applications. In the unfortunate event that a disaster occurs in one of the centers, the second data center can continue delivering the service. Thus, no loss in your data.
Work anywhere in anytime
No matter where you are or which devices you want to use, you just need an Internet connection to work with SaaS applications. Since the software is hosted in the cloud, the SaaS solutions are accessible over the world with Internet/Wi-fi connection. You can access real-time data and order taking with the customer without any doubts.
SaaS applications will bring big advantages for home-workers or people that work across multiple sites.
Besides, the system works 24/7, so you can gain new customers at every moment of the day. There will always be a lot of customers entering your website and buy products. It means that you get revenues even when you and your whole staff sleep.
No need of resellers or middlemen to distribute your product. Just market it globally by yourself!
Case Study of Switching to SaaS
Matson Inc. is one of the most recent successful examples of a business shifting its focus from the on-premises, perpetual-licensed software to the SaaS version.
Matson Inc. is a well-known B2B company, leading the US carrier in the Pacific Ocean.
The obstacles prevented the growth of Matson Inc.
Before moving to SaaS, Matson had managed four big on-premise data centers, which cost a huge amount of money to hire employees and decreased the flexibility when managing tons of transported products every day.
What they were looking for
The Matson Inc. required advanced IT capabilities to enable the real-time accurate tracking of assets and customer shipments as they moved around the world.
Matson’s vessels, shipping terminals, container equipment, and truck shipments all required highly reliable technology to ensure its transportation network operates at world‐class levels.
Moreover, its customers count on cloud‐based applications to provide real‐time visibility and analytics to manage their own supply chains.
The Ultimate Key
In addition to garnering increased performance, increased reliability, improved security, and IT infrastructure cost savings, the decision to transition entirely to the cloud was primarily driven by industry pressures.
In late 2016, the company closed all four of its on-premise systems and migrated entire IT environment to SaaS, including its customer‐facing website and all its mission‐critical applications: custom‐built order‐to‐cash booking and billing systems, terminal operations, global equipment management, and US‐wide logistics applications among them.
Migrating all the enterprise applications to a cloud environment has helped the Matson Inc. to boost up business growth and technology innovation. Better yet, Matson also provided a measurable benefit of SaaS – reducing 50% of IT costs by closing its four on‐premise data centers.
- Improved reliability
- Better performance
- Higher security
- Cut costs by 50 percent
- Have more time to focus on business innovation
Although cloud-based platforms are more money saving and time efficient, before jumping to the final decision, you must ensure that the software, platform, and applications you are signing up for will work cohesively.
After all, the benefits of the SaaS model are undeniable. It has made business solutions more affordable and accessible to businesses no matter their size and has considerably improved the ease of use of many business tools.
With SaaS, the business systems become not only a hassle-free but also a high secured option that any company looking to thrive in the future.