With the growing use of convenient and versatile SMART devices, rather than purchasing and installing software to computers and/or computer networks, people generally prefer to use software services over the internet. SaaS (Software as a Service) can be defined as an application deployed to give customers access to software via the internet. SaaS enable customers to use the software by simply going to the secure website by using internet only, instead of having to install the software on their computer. Customers can use the software customized to their business needs by simply paying a monthly fee.

Why Customers Prefer to Use SaaS Business Model?

One of the prime reasons a Tech Startup should use the SaaS Business Model is the customers’ preference for comparatively lower up-front capital expenditure, unlike the padded downright charges customers have to pay for the purchase of software. Secondly, it saves further up-gradation costs as the customer does not have to pay hefty prices to install newly updated versions on their computers every now and then. In the case of the SaaS Business Model, upgrades and other software services are regularly added on the secure site available on the internet thus saving customers time, resources, and the need to keep them updated about new versions and updates. The consequent ease of access and use of these services also helps companies in boosting their sales and profits by accumulating contracts as a source of future revenues and growing company assets.

Benefits of Using SaaS Business Model

With the emergence of Cloud computing and smart devices, many profitable ventures are making the transition into subscription-based services by switching to SaaS Business Model and making the standard software a relic of the past. Going for the SaaS Business Model brings about a number of advantages few of which are discussed below.

1. Scalability

The demand for real-time information stresses companies to process large amounts of data in a timely manner. With the scalability offered by SaaS applications, companies can handle high volumes of data transactions while facilitating informed decision-making by giving up-to-date reports. A variety of subscription tiers offered by SaaS providers allow customers to meet the needs of their users while being able to change between the options and collaborate at different locations. Tech startups can easily cope with their competition as they do not need to upgrade their hardware frequently, which is managed by the SaaS provider.

2. Lower Cost

Developing and hosting software requires multiple supporting devices, operating systems, and attending to local device issues periodically. In SaaS Business Model, one only needs to worry about supporting different web browsers which is far less complicated and inexpensive. One does not need to develop an expensive SaaS site and can save the cost of infrastructure by simply using available SaaS platforms for much lower costs.

3. Licesing

SaaS users don’t need to have an end-user license to activate the software as the software is not installed on-premises. The SaaS subscription model offers adaptability and is highly accommodating to the needs of the customer, unlike hosted software. SaaS offers flexible monthly and yearly subscriptions based on as and when needed, without having to purchase the license.

4. Convenience

In the SaaS business application, all customers are provided with tutorials, best practices, and samples plus customers can start using the application as soon as they log in. Through free trials offered by SaaS providers, buyers can try out the software before making a final decision to purchase and giving credit information. SaaS Model also offers incremental new features and upgrades. Moreover, SaaS tools are easy to use and allow employees to use them independently, resulting in increased productivity. As SaaS software is used on a subscription basis, a business does not need to worry about piracy or audit issues that come with hosting regular software. Another important factor contributing to convenience is that the customer does not have to face downtime or interruption in services, as SaaS providers assist their customers around a clock even remotely.

5. Revenues

SaaS allows you to build loyal customers and enjoy regular revenues from monthly and yearly subscriptions. The revenue stream is also highly predictable as customers tend to stay for longer periods of time and chances of canceling the subscription are meager. Recurring and stable revenues allow the company to focus on attracting and retaining customers and business growth without having to worry about the bottom line. SaaS Business Model can easily be expanded to foreign markets by just marketing it globally as it does not need any resellers or middlemen to support the distribution.


Businesses can easily achieve a reliable platform for launching their applications in a high-end and economic manner. With its flexibility and scalability, SaaS Business Model gives results instantaneously while allowing you to adapt to change and grow. The benefits exist for both, software and the customer as they both grow together while strengthening the IT services industry and improving its delivery.

This article describes how SaaS Business Model helps Tech Startups to anchor themselves in the market by financing the customer’s purchase of software and allowing the customer to pay overtime in the form of a monthly fee. This allows SaaS companies to enjoy a continuous flow of monthly recurring revenues while giving the customer the convenience of use. Contact us by clicking on our web link https://khired.com/ or emailing us at info@khired.com to avail our professional and expert web development and management services.