Software as a service (Saas) is a growing market and model where users are connected to and use cloud-based software over the internet.
Many people use SaaS without even knowing it: email platforms, online calendars, subscription-based services for video streaming, or finances. Most are pay-as-you-go subscriptions that are different from the one and done physical product of days past.
51% of organizations use Saas, while 38% rely solely on SaaS (Racmi).
SaaS is increasingly becoming vital to how a company runs and optimizes its production. There are numerous advantages and disadvantages of service as software tools and platforms. Here is a shortlist of some factors to take into consideration when considering SaaS.
Five Advantages of SaaS
1. Reduced Cost
Most SaaS is delivered through a subscription-based model. The cost can be broken into convenient installments rather than one large payment. Many SaaS companies offer significant discounts for up-front or annual subscriptions, lowering the overall cost.
The provider maintains the hardware and software maintenance as well as the infrastructure required. Because of this, companies that purchase the product do not need to maintain specialized IT departments or the infrastructure to keep up with the software service, thus reducing the cost had the company had tried to set up a similar operation in-house.
2. Accessibility
There are few requirements for a SaaS product, mostly a way to access the information and a reliable internet connection. Because most SaaS is user-friendly, there is less of a need for experts and professionals to install and maintain the product. Generally, most SaaS products are compatible and accessible to various operating systems.
As the technical work of installation and configuring into the cloud has already been done, SaaS is relatively easy to deploy and usually only requires credentials for appropriate access to the software service.
3. Scalability
Many SaaS providers have various customizable plans and options for a consumer to choose from, which increases the possibilities to scale the product to meet needs and demand. The customer can pay for what they need, and it is relatively easy to upgrade or downgrade depending on the project and people involved. This is particularly advantageous to companies as they grow and expand. Having the flexibility to change and adapt the service to the growing needs of a company is ideal.
4. Updates
As the SaaS provider maintains the hardware and the software, they also maintain and implement any upgrades to their product. It is often advantageous for a SaaS company to continuously roll out upgrades to stay competitive in the marketplace, which significantly benefits the consumer. The workload and responsibility of such a task are maintained by the SaaS provider and is one less thing for the consumer to deal with. Because the SaaS company has the expertise and experience with that software, updates are implemented efficiently and frequently.
5. Resilience
Because the SaaS company maintains the hardware and infrastructure in cloud-based storage, the data and information are protected from any disaster, damage, or unfortunate events that may befall a business’s physical location. A company can get to business as quickly as it can access an internet connection..
Five Disadvantages of SaaS
1. Limited Operations
Software services are limited to what a particular SaaS product can provide. Though the SaaS company may offer a wide variety of options, packages, and upgrades, they are limited by what they can provide. A consumer may be left to find the right combination of SaaS products that fill their particular need rather than have a one-fits-all product.
2. Compliance Difficulty
The government has strict data protection regulations. The consumer is responsible for knowing the rules and regulations that apply to their industry and how that might affect or interact with the desired SaaS product. Failure to be compliant would be on the consumer’s hands if they did not do their due diligence in research. Again, though a product may sound perfect, if it does not meet the security standards required by particular industries, a consumer will bump into those limitations.
3. Data Concerns
Knowing that data is secure is a top concern for any company. Identity and access management needs to be secured. A company is trusting its valuable identity to a relatively unknown third party. There needs to
The SaaS marketplace is saturated with start-ups. Should a start-up fail unexpectedly, data mobility and data security are considerable risks companies face. An exit strategy for a SaaS product is essential, especially if using a start-up product.
4. Lack-luster Performance
Most SaaS products are dependent on reliable internet. An application running over the internet, with its numerous variables, is always going to have more issues with performance than an application running directly to a device..
Should the consumer not have adequate internet access, the software will not perform to expectations. It is up to the consumer to be aware of whether their internet service and devices are sufficient to the demands of the software service.
5. Integration and Compatibility
The software service may be exactly what the consumer wants and needs. But if their systems are not compatible, it does not help the consumer much. It is up to the customer to know whether the service is compatible with the in-house software the consumer is using. Because SaaS is appealing to companies who do not have an extensive IT department, running into an IT problem leaves the customers at the hands of another company’s IT department to sort out the integration and compatibility need. This can become time-consuming and tedious which can be frustrating when the process was supposed to be easy.
The appeal of SaaS is evident by its explosion across the marketplace. Individuals and companies alike can find the product that best suits their needs and adjust their services based on the growth or change within their company. As with everything in life, the good comes with the bad. Take the time to proactive evaluate SaaS product’s to find which products meet the overall desired criteria while keeping possible disadvantages in mind.
References:
- racemi.com/saas-advantages-and-disadvantages/