Previously, companies would need to buy, build, and maintain IT infrastructures to support application deployment. With SaaS, the only infrastructure needed is broadband internet connectivity. Rather than paying a licensing fee, companies must simply pay on a subscription basis, similar to a monthly magazine subscription.
2. Flexibility and speed
The multi-tenancy model of SaaS allows organisations to scale rapidly without incurring additional infrastructure or staffing costs. As a technology buyer, one can easily try out a few subscription seats on the platform. Service providers can readily support customers and respond to changing market requirements faster than with on-premise software.
While this is important in and of itself, it is further pertinent for volatile markets and industries. What’s more, SaaS solutions can be provisioned with great speed, often with simply a browser and an internet connection from a wide range of desktop and mobile devices.
Implementing a SaaS solution can happen without disrupting day-to-day business and without necessitating a rip-and-replace exercise for a legacy IT system. It integrates with your existing investments, rather than displacing them. In fact, many SaaS products come with ready-made tools to integrate with popular packages.
With these advantages, SaaS remains a model for technology to drive and deliver innovation in businesses. In the enterprise, SaaS is also going strong.
Additionally, SaaS made its name initially with software to help manage sales, but it’s now equally used to manage suppliers. As a litmus test, consider how many of your colleagues are using Dropbox to share files rather than relying purely on the corporate fileserver.