Written By :Appsierra

Tue Jul 18 2023

5 min read

What Is Software-as-a-Service? A Beginners’ Guide To SaaS Development

Home >> Blogs >> What Is Software-as-a-Service? A Beginners’ Guide To SaaS Development

SaaS or Software as a service has now transformed the manner we buy the software and every business has deployed a SaaS solution in its environment. Well, are you novel to SaaS development? Have unanswered queries? Do you want to know how SaaS can help your business? Or, you wish to know more about building SaaS systems? So, in case you are ready to go to the world of SaaS, we’re all set to get you there.

What is SaaS Development or Software as a Service?

Hence, SaaS is also called an on-demand software solution. It is a kind of hosted software and web-based software. Moreover, software as a Service (SaaS) is a cloud-empowered software delivery system. It will help your business increase its productivity and profits. Examples for Software as a Service (SaaS) to Inspire You: Lumen5 , FutureTreibstoff, Squibler’s, buffer. Dropbox. Of the Amazon

Furthermore, software as a service can be defined as the service provider which can create, maintain, and handle cloud software by offering automatic updates. They can also make the software accessible to their clients. Thus, they use a pay-as-you-go model by keeping the security, availability, and performance. Additionally, all the middleware, hardware, software, and security are being controlled by the cloud service provider and they’re helping SaaS clients dramatically lower the costs. Moreover, helping the clients to deploy, upgrade and scale business service more efficiently.

The Evolution of SaaS or Software as a Service

Generally, the term SaaS first came in the early 1990s around the time when the initial SaaS service emerged. But the application service provider model had some serious restrictions. Also, the up-and-coming SaaS model delivered higher efficiencies.

  1. A single app could serve many users
  2. Local software installation was no longer required
  3. It offered a way to gather, add and centralize helpful app data

Hence, SaaS has evolved from first-generation siloed solutions to a modern cloud suite. And, it can span and link financials, procurement, human resources, and supply chain processes. That too helped in marketing, commerce, sales and service with high visibility across businesses. Now, SaaS turned into one of the fastest-rising business models in the industry. By 2024, Saas is estimated to reach a market size of $185.8 billion.

Common SaaS Scenario

Now, you might use the web services of an email service provider- Outlook, Gmail, Yahoo.

What did you do to access your email?

Log into your email account from a browser on the web onto the service provider’s network where the email software is placed. You are already using a type of SaaS at a personal level. For business purposes, you rent SaaS apps like CRM, ERP, document management and other apps. Businesses of all sizes are embracing SaaS autonomy. Yet, is SaaS a great fit for your company?

Here, we have mentioned a few statistics to make you understand

In businesses running almost on SaaS apps, employee engagement was extremely greater. Around 86% of end-customers said SaaS enables them to succeed more than other alternatives (BetterCloud).

 Beginners’ Guide To SaaS Development
Common SaaS Scenario

There were around 500 marketing tools in 2007. And, by the end of 2017, there are over 8,500. (Price intelligently)

Around 93% of CIOs are planning to adopt cloud SaaS. (Deloitte)

The average number of SaaS applications used by businesses had risen twice, from 8 to 16, amid 2015 & 2017. (BetterCloud)

Around 38% of businesses adopt cloud-based solutions to boost disaster recovery capabilities. (SpiceWorks)

The largest markets for cloud SaaS applications are CRM (31.6%), HCM (14.7%), and ERP (8.4%). (Apps Run The World)

Business Benefits of Software as a Service

We created the SaaS model from its start to deliver the right solution to benefit your business:

1. Lower Costs

Decreases the associated costs of hardware maintenance and purchases.

2. Pay-As-You-Go Pricing

Instead of buying software licenses and installing it on a set of PCs, subscribe and pay-as-you-go.

3. Cloud Flexibility

Users can easily access the software from anywhere on any device over the internet connection.

4. Device/Software Support

It supports both computers and mobile devices. Also, not only Windows, it supports iOS, macOS, and Android—and runs on all the major browsers.

5. Easy Scalability

SaaS helps businesses to ramp services and/or features up or down as required.

6. Rapid Deployment

Service providers can build automatic updates in software. So, businesses need not think about buying new releases.

7. Driving Innovation

SaaS helps innovation cycles and provides you with quick accessibility to the most recent advancements.

8. Connected Processes

SaaS provides the unified user experience, shared security levels, synchronized release schedules and a lot more. So, these are a few of the benefits of choosing SaaS development usually centered on sparing in cost and time. But there are some potential disadvantages, which lie with the service providers, not the software. Therefore, if you are looking for the right SaaS service provider, choose wisely.

Also Read: Understanding What is SaaS product!

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