What is a SaaS Product? Types of Software As A Services in 2022
Software as a Service (SaaS) can be generally referred to as business software applications that are delivered through the cloud instead of being deployed on local platforms. Cloud computing has three main types and SaaS is one of them including Infrastructure as a Service (IaaS) and Platform as a Service (PaaS).
Instead of purchasing the software outright, the users pay the subscription fee for the applications via a cloud service provider.
In this article, we will cover all the parameters and provide you with a detailed guide on what SaaS is, the advantages and disadvantages of the SaaS, types of SaaS solutions available, and examples of SaaS companies in today’s date.
What is a SaaS product?
Software as a service (SaaS) is the most widely popular and used option for businesses in the cloud market. This is because it can be accessed easily. For that, all you need is a good internet connection and a browser. You might need vendors for the SaaS delivery model to handle all the technical issues, which also means customers need not lean on their in-house IT expertise.
SaaS solutions are gaining more popularity as startups or businesses find it more pleasant to operate in the cloud.
While many end users can self-provision SaaS technology on their own, others find that they need a third party to help with integration, customization, and security.
It requires a fundamental understanding of the different components used for a better understanding of how to analyze, evaluate, and design cloud computing solutions.
Here are the most commonly used types of cloud computing services:
Infrastructure as a service (IaaS)
Platform as a service (PaaS)
Software as a service (SaaS)
Several benefits like flexibility and cost come with SaaS. Employees can work better when SaaS vendors handle works that take long such as installing, managing, and updating software.
Advantages & Disadvantages of SaaS Product
Advantages of SaaS Product
SaaS provides several advantages over the traditional models of business software installation such as:
Lower up-front cost — SaaS has no up-front license fees and it is based on subscriptions that ultimately result in lesser costs. The IT infrastructure which is running the software is managed by the SaaS providers which ultimately decreases the cost of hardware and software maintenance.
Quick setup and deployment — SaaS application is installed by now and arranged in the cloud. This declines common delays which might result from frequently tedious traditional software deployment.
An easy upgrade — The SaaS providers take care of the hardware and software updates, deploying upgrades centrally to the hosted applications and decreasing your workload and responsibility.
Accessibility — You need a good internet connection and a browser for accessing a SaaS application. SaaS is more accessible in comparison to traditional business software installation due to its availability on a wide range of devices and from anywhere across the world.
Scalability — Many subscription options and flexibility in changing the plan are offered by the SaaS providers whenever required. For example, if your business continues to grow or there is a need of accessing the service by more users.
You can make the most of a limited IT budget with the help of SaaS by gaining access to the latest technology and support from professionals. But, you must have a look at some potential disadvantages of SaaS before making any decision.
Disadvantages of SaaS Product
There are certain disadvantages of the SaaS model:
Lack of control — In-house software application provides businesses far better control as compared to hosted solutions in which the control lies with the third party. Everyone wishes to use the latest version of the software application and cannot defer upgrades or changes in the features.
Security and data concerns — A major consideration in hosted services and around the cloud is access management and the privacy of sensitive information.
Limited range of applications — Despite the fact that SaaS is gaining more popularity, there are various applications that don’t provide a hosted platform.
Connectivity requirement — You might lose access to your software or data in case internet service fails as the SaaS model is based on web delivery.
Performance — SaaS lacks in performance and the speed is somewhat slower than on-premise client or server applications, therefore, you have to keep performance in consideration if your software isn’t hosted on a local machine.
Types of SaaS Products
Several types of SaaS applications are available in the market today. Here are some most common SaaS software types that can be of great advantage for your business and users:
Customer Relationship Management (CRM) Software. This software manages customer data, tracks customer interactions, compiles business information, and automates sales.
Enterprise Resource Planning (ERP) Software. This software integrates various functions into one complete system to improve efficiency and empower information sharing.
Accounting SaaS. This software keeps track of your finances and is organized to make sure that your business is right on track.
Project Management Software. This software plans projects, manages schedules, allocates resources, and communicates deadlines to ensure the completion of the project within the budget and on time.
Email Marketing SaaS. This software does the optimization of the message delivery during automating marketing emails.
Some other types of SaaS applications are web hosting software, billing and invoice software, Human resources software, and collaboration software. You can choose the most suitable cloud products for your business among all the SaaS options available.
Some other popular SaaS business products are Slack, Concur, Microsoft Office 365, Dropbox, and Salesforce.com.
Examples of Best SaaS Products
Let’s take a look at the top 5 SaaS product companies.
Google
No introduction is needed for this company; everyone is very well familiar with it. 137 internet-oriented products have been developed by Google.
Their products are amazing and we use them every day. The products list of Google includes a search engine, maps, software for advertising, analytics, and documents.
This company was started in the year 1998 as a little startup. At present, it has a total revenue of $136 billion.
Adobe
Photoshop and Illustrator or Flash players are well-known today. More than 50 products are owned by Adobe in the field of photo, and video editing, printed media, and marketing. Almost 200 million PDFs were opened by the users annually with the help of Adobe. And, the company earned $9 billion in turn last year.
Slack
The company was started as a massively multiplayer gaming company known as “Tiny Speck” which failed to fulfill its objectives. Later, the company managed to morph into Slack which is well-known today and used today.
It was started in the year 2013 and presently develops three products. The product which is of major importance is the Slack messenger and is used for business purposes. It is very easy to integrate Slack with third-party services.
These reasons play a major role in helping Slack to gain 9 million active users per week and have generated total revenue of $401.
MailChimp
MailChimp was recognized by the world when Darwin’s theory met email marketing. At the present time, it owns three products.
The most important product MailChimp is an email marketing tool, which is used for developing and analyzing email-oriented marketing companies.
Almost 15 billion letters are sent every month by MailChimp. As a result, the company has earned $400 million with the help of just 550 employees.
Shopify
If you wish to start a business, then use a credible tool like Shopify. It is an eCommerce platform and owns four products presently. The most important product, Shopify, is an eCommerce platform for online stores and retail Point Of Sale.
This tool is used by almost 800 thousand entrepreneurs for business purposes. Hence, it helped Shopify to generate total revenue of $1.3 billion last year.
FAQ’s of SaaS Product
What is the importance of SaaS?
Nowadays, SaaS solutions are not merely “nice to have” but they’ve become the default software delivery method across all industries and sectors. The reasons are manifold and extend from cost savings and easy remote access to increased collaboration and customization.
Is my data safe in the cloud?
Even though storing sensitive data in the cloud has a bad rap, SaaS applications can provide better data protection than on-premise solutions. That is, if users choose the right vendor, and apply the right technology and best practices to avoid data breaches of any kind.
When to use SaaS?
SaaS applications are ideal for growing businesses that need quick solutions that don’t require a large upfront investment or long installment periods. Consider switching over to SaaS for applications that you need to access from anywhere or that you don’t need that often, like tax software.
Summary
SaaS product is cloud-based computer software that can be accessed only online. Additionally, it is a subscription-based service. This type of software enables users to access their smartphones smoothly to speed up their productivity.
It has become one of the trends in the world of digital products. As per the statistics, approximately 37% of all projects fail due to a lack of clearance in their objectives. Therefore, it is highly recommended to validate the idea first. For more information, contact us now!