In 2015, the SaaS industry was worth a ”modest” $31.5 billion. Come 2022, the SaaS sector has grown to $171.9 billion.
Considering that 80% of the software used in organizations are SaaS platforms, the industry value is not surprising. But, it’s nevertheless staggering!
Why are SaaS organizations so prevalent in modern business?
Could it be the fact that SaaS platforms boost productivity or is it because they’re cost-efficient? Perhaps because they’re easily scalable, which is crucial in the industry’s steady growth.
It’s all of the above—and then some!
Below, we’ll go over the benefits of SaaS that will help you understand why SaaS is the future of business—and why you want to be part of that future.
Table of Contents
What Is SaaS?
SaaS stands for "software as a service." It's a type of software that allows users to access and use applications over the Internet.
Let’s try this way...
What’s the latest movie you watched on Netflix?
When was your last Zoom call?
If you've ever used any of these — or Google Docs, Dropbox, iCloud (just to name a few) — you've already used a SaaS application.
Unlike traditional software programs, SaaS applications don't need to be installed on your computer. They're also usually more affordable since you only pay for the features you use.
The biggest advantage of SaaS applications is that they can be accessed from anywhere in the world. As long as you have an Internet connection, you can use a SaaS application on your laptop, tablet, or phone (assuming it’s not the indestructible Nokia 3310).
It is because of all this that SaaS is recognized as the most important technology in the overall success of a business, helping executives and employees reach their operational goals with ease.
As hinted above, there are a lot of SaaS benefits, and these are just some of them:
1. Improved Collaboration
Collaboration is critical for the success of any business—86% of executives and employees tie lack of effective collaboration to workplace failure. This is where SaaS platforms shine.
For instance, with a service like GitHub or GitLab, you can work on the same project simultaneously with your team members across the globe. It’s like having everyone in one room together—you can share documents and files easily through email links or cloud storage services like Dropbox or Google Drive.
Collaboration also includes chatting with other team members via video chat or voice calls, allowing you to talk without leaving your desk (or wherever else you might be). Almost every SaaS platform comes with built-in chat and video conferencing features that help all stakeholders communicate effortlessly.
2. Reduced Costs
Another advantage of SaaS is that it helps reduce costs.
Enter SaaS platforms; since they are typically subscription-based, businesses only need to pay for the services they use.
Moreover, most companies offer multiple pricing plans for different budgets and needs (and many offer discounts if users exceed certain monthly limits), so there are no hard limits placed on how much money users will spend on their subscriptions each month.
Additionally, SaaS platforms are hosted on the cloud, which can help further reduce costs as businesses do not need to invest in on-premise hardware or software.
And because there's no upfront investment in maintaining this type of system, there's no risk involved when switching over from one company to another.
3. Increased Scalability and Flexibility
Speaking of the benefits of SaaS, how would you like to effortlessly scale up or down to meet the changing needs of your business? All without having to make significant upfront investments in hardware or software.
This flexibility is especially beneficial for businesses growing rapidly, as they can easily add new users and features as needed.
SaaS solutions are often much easier to implement than on-premise solutions, meaning businesses can get up and running smoothly and with minimal disruption. This can save organizations both time and money.
For example, if you need to increase the storage capacity, simply add more storage to the SaaS platform. This is in contrast to traditional software, which would require you to purchase and install new software licenses.
Since SaaS applications can be quickly updated and upgraded as new features become available, users can keep up with the latest advancements in technology.
4. Boosted Efficiency Through Automation
Think about an industry — any industry — and rest assured that that exact sector can benefit from SaaS. As a matter of fact, 99% of businesses already use one or more SaaS solutions, reaping the benefits of SaaS on a daily basis.
SaaS platforms are typically easy to use and allow businesses to access their data from anywhere, anytime, delivering unparalleled efficiency.
Forget about installing software or buying hardware — all of that is taken care of for you with SaaS solutions.
Most SaaS platforms come with a variety of built-in features and integrations that help businesses automate tasks and workflows.
Automating repetitive tasks is a surefire way of boosting efficiency by cutting down on time used to complete otherwise manual tasks while also reducing inaccuracies.
Many exceptional workers manually enter and retrieve information, switching from one task to another, which takes up about 40% of their productive time. What’s even more concerning, 54% of in-house employees spend more time looking for files and organizing documents than on work.
If you want your employees to keep their enthusiasm to work on more strategic tasks that can boost the business’s bottom line, consider the following SaaS automation tools:
...the list goes on and on. No matter the industry you’re in, there’s a SaaS solution out there to serve your needs.
By choosing SaaS, you and your employees can focus on ”real work” and you'll find that the time you spend working on your business is more productive and meaningful.
5. Enhanced Security
With so much of our lives and businesses taking place online, it's imperative we do everything we can to protect our information.
The cybercrime damage was estimated at $3 billion back in 2015 and it is expected to grow up to $10.5 trillion by 2025. No one’s safe and the stakes are high—it’s more important than ever to keep your data safe and sound.
One way to enhance security is to use SaaS.
Since your data is stored off-site, it is less vulnerable to attacks. There's no chance for hackers to gain access to your data or systems through malicious code in the app itself (as they might if it was stored locally).
By centralizing data storage and management in the cloud, SaaS makes it more difficult for unauthorized users to gain access to sensitive information. In addition, SaaS providers typically have strong security protocols in place to protect their systems from attacks.
For example, many SaaS platforms offer encryption or two-factor authentication, which requires users to confirm their identity with a password and a phone number.
This means less stress for everyone involved with running businesses online today and everyone wins when more people adopt the SaaS method—aside from hackers, that is.
6. Effortless Integrations
If you were to perform all the types of software testing on the programs you need to integrate to see if they work well together, not only will you lose time and money, but you’ll probably lose your cool too.
This brings us to yet another advantage of SaaS!
If you're looking for a software solution that will play nicely with the rest of your applications and systems, you'll want to consider a SaaS option.
SaaS applications are designed to be easily integrated with other software, making them ideal for businesses that use a variety of different applications.
For example, if you use an accounting program, a CRM system, and a project management tool, a SaaS application can be seamlessly integrated with all of these programs. This way, you can avoid the hassle of managing multiple software applications that don't talk to each other.
In addition, since SaaS applications are typically cloud-based, they can be accessed from anywhere there's an Internet connection. So, if you have employees who work remotely or travel often, they'll still be able to access the software they need.
All in all, SaaS is a great option if you're looking for software that will fit in beautifully with your existing setup.
Benefits of SaaS: Key Takeaways
SaaS enables businesses to take advantage of cutting-edge technology without having to worry about the hardware and software infrastructure. With SaaS, there are no servers, hardware, or software to manage.
Instead, you get all the benefits of a traditional IT department, but none of the hassle.
You can access all your data from anywhere in the world with just a few clicks. This means that you don't have to worry about security breaches or viruses like you do with traditional software.
Your business will also be able to run faster as most of the heavy lifting is done by the SaaS provider rather than by the employees themselves.
As technology advances, so do the software-as-a-service benefits that these unique cloud-hosted solutions bring. At this tempo, SaaS is very likely to replace traditional software and hardware for good!