Recall old times when computers were no less than a fascination at home. We would spend money buying expensive CDs and DVDs of our favorite movies, games, and software. Online video streaming has not been mainstreamed yet. Hence, on-premises installation was the only option.
Then came the Internet revolution, and it changed everything.
CDs and DVDs became history. Users can now see their favorite movies online through YouTube, Netflix, Amazon Prime, etc. Similarly, traditional software that required on-premises installation was replaced with cloud-based SaaS solutions.
This is the SaaS era, which has gained immense popularity in recent years.
A survey showed that over 55% of businesses use multiple public clouds. Likewise, another study revealed more than 80% of the software used in the corporate sector today are SaaS platforms.
What makes the SaaS model lucrative for businesses, and how can SMEs leverage this option to achieve corporate excellence? Let’s find the answer to this question in this blog.
So, let’s get started.
What is SaaS?
SaaS is an acronym of Software-as-a-Service. It is a software delivery model that allows users to access advanced features or functionalities online. SaaS solutions don’t require device installation; you need a good internet connection to perform your desired action seamlessly.
Let’s explain the SaaS model in simpler terms.
What was the title of the last presentation you prepared on Microsoft PowerPoint? Or which application did you write on Microsoft Word last time? Both PowerPoint and Word are part of Microsoft Office. It’s a globally renowned software with millions of users globally.
However, as you know, MS Office requires installation on the local device. The document you saved on your computer cannot be accessed remotely.
Conversely, using Microsoft 365, you can access all products, including PowerPoint and Word, online. You can create new documents, edit previous ones, or access editing history. All your data is saved online and becomes remotely accessible.
And the best thing is you don’t need to install Microsoft 365 on your device. Just go to the website, log in to your account, and start using Office anytime, anywhere.
Microsoft 365 is a popular example of a SaaS platform. It offers unique benefits like universal accessibility, live collaboration, and user-friendliness. Other popular SaaS platforms are Google Docs, Zoom, Netflix, and Dropbox.
Why Do Small Businesses Need Cloud-based Solutions?
SMEs face several problems during the initial days. One of the most prominent ones is the lack of human and financial resources. Startups often struggle to meet customers’ demands due to limited expertise. Hence, cost-effective means become the ideal solution for progress amid a highly competitive business landscape.
The SaaS model gives SMEs the flexibility they need to grow. Instead of spending much buying expensive software, employers can choose the pay-as-you-go pricing model of cloud-based applications. This model gives users access to desired features based on their budget and requirements.
If, for example, you have a small team of 50 people, you can choose a basic plan. However, a premium or enterprise SaaS plan with advanced features would be suitable as your workforce grows. Hence, SaaS allows you to scale up or down and meet your needs without stretching your budget.
Similarly, SaaS platforms promote team collaboration, particularly among remote workers. Employees can interact virtually, share data, and access their documents online. There is no restriction on time, device, or location.
SaaS Model for SMEs: 5 Key Benefits to Consider
If you own an SME, consider the five benefits of the SaaS model that can help you amplify your corporate growth and achieve your desired goals.
1. Better Team Collaboration
Team collaboration drives organizational success. Lack of teamwork is the primary reason behind workplace failure, said 86% of executives in a recent survey conducted by Fierce. That’s the reason employers strive to encourage employees to collaborate and find viable solutions together.
SaaS platforms bring teams closer and create ample opportunities for collaboration. Employees working remotely or from the Office can conduct online meetings and discuss important matters with cloud-based tools like Zoom, Meet, and Teams.
Similarly, services like GitHub, Jira, and GitLab enable professionals to work on the same projects simultaneously. With Google Drive or Dropbox, key documents can be stored online and accessed from any device or location.
Hence, businesses can leverage the SaaS model to become more competitive and deliver value.
2. Increased Scalability & Flexibility
One of the most important lessons learned during the COVID-19 pandemic was the need for operational flexibility. When business activities were shut down amid lockdown, companies struggled to meet their consumers’ requirements. Even during peak demand periods, scalability was impossible.
At that time, SaaS platforms came to rescue the corporate world. The cloud nature of SaaS applications enabled teams to work remotely and continue their business activities without interruption. Companies started with basic pricing plans and gradually upgraded their memberships as their businesses grew.
The SaaS model, therefore, salvaged SMEs in three ways. First, cloud-based solutions allow companies to operate round-the-clock and fulfil their commitments. Second, businesses didn’t have to invest in expensive infrastructure for on-premises software. Instead, SaaS became a cost-effective and viable option. The third benefit of SaaS adoption was unprecedented growth in terms of revenues, team productivity, and organizational profitability.
3. Painless Adoption
Over 45% of IT executives from top companies said their profits from digital transformation projects were far less than initial calculations, according to a study conducted by McKinsey & Company. The primary reasons were lack of investment and unclear priorities.
On the other hand, SaaS applications are far easier to deploy and integrate across organizational infrastructure. Businesses can adopt the SaaS model painlessly with less downtime. Stakeholders don’t have to rely on developers to get things done. Instead, they can choose suitable SaaS tools by analyzing their requirements.
As a result, the average deployment period can be reduced from weeks to a few days or hours with SaaS tools. SMEs can utilize this time to explore more growth opportunities.
4. Improved Productivity
A productive workforce is an invaluable asset for every organization, including SMEs. And integration is the key to making employees more productive and efficient.
SaaS applications offer a multitude of integration possibilities that drive business efficiency. Companies can connect different applications to optimize their operations and make data-driven decisions. For instance, HR managers can track employee work hours with cloud-based workforce management software. That data can then be used to calculate wages accurately and process payrolls.
This way, seamless integration brings isolated departments to one place. Teams can get real-time insights into organizational performance and make informed decisions.
5. Reduced Costs
Traditional software has a major drawback. Businesses must spend much to establish in-house infrastructure and a team of skilled developers. Once the application is ready, employees need advanced training to get familiar with features and perform their jobs. Moreover, high maintenance and upgradation costs make conventional tools less feasible for small businesses.
Conversely, SaaS companies offer their services on a pay-as-you-go model. Users need not buy expensive software and install it on-premises. Instead, they can choose a pricing model per their organizational needs and use that tool with minimal training.
Most importantly, the pricing models are quite flexible. You can scale up your SaaS application and select a higher package without paying extra charges. Therefore, the model is extremely beneficial for SMEs and startups with limited financial resources.
Final Thoughts
Software-as-a-Service (SaaS) is the model to deliver software or specific services via the Internet. SaaS applications are hosted on the cloud and are accessible anytime, anywhere. These tools don’t require device installation and are available for monthly or annual subscription fees.
Over the years, there has been a paradigm shift in the choice of software among the global business community. More companies nowadays prefer cloud-based applications for their scalability, robust performance, and cost-efficiency. Organizations across diverse sectors and sizes are replacing traditional software with SaaS applications.
Lastly, the SaaS model has been valuable for SMEs and startups regarding efficiency and reliability. SaaS applications help small businesses improve team collaboration and productivity while reducing costs. Companies can upgrade these tools per their needs and quickly deploy them to deliver impeccable results.