Businesses are going online to reach a wider audience and to make sure this move is flawless, they employ SaaS based services. The future is now and it’s spelled, S-a-a-S.
What is SaaS?
Software as a Service, or otherwise known as SaaS, is an innovative way to avail of a software or online feature. In the past most individuals or businesses paid a one time premium price to use programs. However, a lot of companies have slowly moved away from traditional acquisition to a cloud-based sharing.
SaaS companies share their software by giving companies access to their cloud. Usually, the program doesn’t need to be downloaded or installed as it comes to the consumer as “a whole”. It just needs to be accessed by the consumer through their preferred web browser powered by a very stable internet connection.
What are the Benefits of SaaS?
There is a reason companies like the American Red Cross and Netflix have adopted a SaaS platform when it comes to handling their business. SaaS programs have servers that can handle a huge number of clients. Midsize to bigger companies find its flexibility useful as changes can be accommodated quickly as opposed to old school programs.
Another point that makes people go for SaaS solutions is the payment structure. You pay through a subscription-based model depending on the vendor. Others work with a monthly, semi-annually, or annually schedule. Due to the nature of SaaS, upfront costs are kept to a minimum because licensing and installation are cut.
SaaS applications usually integrate seamlessly with other programs, especially if they are provided by the same vendor. It takes away any other issue that comes with introducing a new program to your company’s system.
It’s adaptability makes it a very powerful tool for companies of any size, from a fledgling startup to a well placed enterprise. For every situation, different kinds of SaaS has been developed to answer the needs of those who use them. In the following, we will be discussing the different kinds of SaaS and how it may be applicable to your situation.
What are the types of SaaS?
Vertical SaaS Solutions
Vertical SaaS works on specialized solutions for distinct targets or niches. They may be designed to specially cater an issue or solve a problem to specific business targets such as banking, retail or eCommerce, healthcare, and more.
The best example of a Vertical SaaS at work is the development of BioIQ. This software is dedicated to health testing and its purpose is to make medical testing easier for everyone through at-home tests and screening. Despite having different locations, you can contact them online and they will provide you with what you need for a fee.
Vertical SaaS may target a narrow market but it is designed to provide specific and focused solutions to its client’s myriad of business issues. This model takes a more conservative approach to marketing products compared to its other counterparts.
Unlike Vertical SaaS models that are target-specific, Horizontal SaaS are used by various businesses in many categories and niches. It has a bigger market to address which means that they can grow to become large-scale companies.
One of the best examples of Horizontal SaaS is Removal.AI, a software tool that can remove background and edit photos. It caters to a lot of various business categories and individuals because optimized and transparent photos are used by many industries and services such as UX/UI design, marketing, eCommerce business management, and photography.
Packaged SaaS Products
Packaged SaaS provides multiple services to cater various customer needs. It can be a software to support financial management, human resource, or marketing that will benefit customers in many ways.
An example would be HubSpot’s package software solutions for deals, commerce and service. EngageBay also has an abundance of offers in its arsenal, such as CRM (Customer Relationship Management), sales enabling tools, appointment scheduling software, and contact management software. Marketing Bay on the other hand, offers you email marketing, marketing automation, SMS marketing, web forms, landing pages, email sequences and live chat software.
Collaborative SaaS Applications
SaaS tools are taking over and fulfilling the demands of existing collaboration tools, assisting companies conform to constantly shifting work environments and user demands.
Groups like Google, IBM, and Microsoft, along with smaller companies that are just starting up, are providing tools for startup businesses as well as established ones. One must consider the pros and cons that come with working in the cloud before you select a SaaS provider.
Not only does SaaS make life easier for businesses, but they also improve work and company culture. You’ll be surprised to discover that your colleagues will be more effective in managing tasks and communicating!
The Future of SaaS
1. Artificial Intelligence and Machine Learning Will Dominate SaaS Technology in the Future
AI has been significantly poignant with regards to reinforcing the natural language processing capabilities of SaaS software, making it easier for apps to be comfortable to user behaviors and habits at a quicker pace, and not needing for board reworking by developers. Machine learning algorithms makes apps get better at dishing out the needs of users, making immediate alterations and personalization easier and quicker to offer.
SaaS along with Artificial Intelligence can be partnered to create data that is useful to the future of your business. Imagine using bots to scan through pertinent information of your clients to identify needs that you can answer.
This cuts the need of having a group of people who will survey through hundreds, or possibly thousands of clients. And unlike humans, AI is more accurate with its data gathering capabilities.
2. SaaS Business Models Will Replace Traditional Business Models
A myriad of SaaS business models are seen to be replacing traditional business models. Subscription-based service models are predicted to fix the market in the long run.
Uber for instance, is an excellent example of subscription based service that has emerged from the traditional business model, taking over taxi services as the norm. Financial technology is also replacing the traditional banking system, providing an easier way of accessing one’s finances while providing a more secure system.
One other significant change is that most software will float to the cloud which will surely be beneficial to the modern world, offering faster and flexible software results.
3. SaaS Business Models Will Cut More Costs and Bring Greater Revenues
SaaS is good for different businesses who need solutions without having to break the bank. It cuts the costs in various ways like slowly retiring the traditional software installation route to possibly removing the need for a physical location. Everything you need to do can be done online
Why would your client have to go through traffic just to visit your site when they can log online and check out what they need on your website? Going online is very attractive to multiple demographics and especially with the current issues we are facing because of COVID-19. SaaS has the capacity to remove the need for physical offices.
As the process of analyzing great volumes of information, SaaS is an invaluable tool in this trade as it provides quality analytical solutions. SaaS can be utilised to provide a number of data points with regards to user behaviours and actions. It will allow you to predict things for you in the long run.
With SaaS, organizations will no longer need to install and run apps on their ends or data centres, removing the costs and struggles of acquiring hardware, maintenance and such, as well as software licensing and support. All in all, SaaS makes life easier for you and your business.
Jenn Pereira is a technology and eCommerce enthusiast who loves to review and write informative content about the latest tech trends and marketing ideas. She is presently managing public relations and customer operations for Removal.AI. An AI technology that operates as a background remover SaaS tool to offer professional photo retouching/editing and removing the background of images for eCommerce and all other web and app development purposes.