More and more businesses are beginning to understand the importance of fundamental business technologies in streamlining both their internal and external processes. Having streamlined and centralized processes help entrepreneurs paint a clearer picture of their business operations before making any business decisions. And just like many other technology trends, SaaS or Software as a Service has grown to become one of the most flexible, affordable, and secure solutions to optimize business models. It shouldn’t come as a surprise that the services of a SaaS programmer have continued to be in high demand.
In this article, we are going to look at what SaaS is and why it is a good choice for your company.
But before we delve deeper into the topic, let’s get the basics out of the way.
Definition of SaaS
SaaS or Software as a Service in full is a software distribution model whereby third-party providers host and avail applications to customers over the Internet. The idea behind this distribution model is that the customers don’t have to purchase the application software, servers, or even run them in-house.
Instead, they contract service providers with their software, server farms, and support staff, and use their applications across the Internet.
Software as a Service has grown to emerge as one of the most thriving offshoots in the IT market. According to a research report by Gartner, the total forecast spending on migration to cloud from on-premises will see a 17% growth and jump from 111Billion in 2019 to reach $216 billion in 2020.
A different report by CISCO shows that many IT organizations are quickly adopting a “Cloud-First” attitude. True to this, it is estimated that 80% of businesses are currently using at least one form of SaaS application with 73% indicating that nearly all their applications will be SaaS by the year 2020.
In terms of growth, cloud traffic is forecasted to represent at least 90% of the total data center traffic and touch 14 zettabytes (ZB) by the year 2020.
And now to the topic of our conversation…
How Can SaaS Help Small Businesses Grow?
As a business manager looking for cost-effective and scalable technology with the latest capabilities to help optimize and grow your business, a SaaS solution is a good bet.
Below we have listed 6 ways on how SaaS can help grow your small business:
Impressive Features And Automated Updates
One of the best ways to improve the productivity of your resources and optimize the efficiency of your business model is to ensure that your business application has seamless features. This allows your workforce to focus on their core tasks in a hassle-free manner instead of having to waste time figuring out how the system works. And this is one area that SaaS manages to outgun proprietary software apps.
By constantly optimizing information and introducing new innovative features, it becomes easy for both internal and external users to immediately start using the new features. Still, SaaS updates are done automatically and implemented as soon as they are released, which helps fix the bugs. As a result, your system is able to operate more efficiently, allowing you to find the right solutions that match your business needs.
Optimize Revenue Flow
As an SME entrepreneur, constant revenue flow is the lifeblood of your business. With that said, most entrepreneurs find it hard to come up with the right mix of tactical and analytical strategies to maximize their revenue growth.
Using SaaS, small businesses are able to amass huge volumes of key customer information to better understand their behaviors and product interaction without investing in costly hardware. Additionally, adopting cloud solutions makes far more sense compared to using an on-premise ERP system as it allows for future scaling up or scaling down without compromising on the cash flows.
In short, SaaS solutions help businesses minimize operational costs, giving them an opportunity to optimize their revenue flow.
High Scalability
As a small business running on a tight budget, SaaS solutions are business-friendly and highly scalable. Instead of investing in a complete software suite, you simply need to pay a monthly fee depending on use. Updates are automatically implemented, plus you can subscribe to new features depending on your business demands. Moreover, SaaS solutions also allow for easy access and mobility of business data, ensuring the businesses aren’t stuck with particular software features.
SaaS also helps small businesses interface their back-office systems and processes with their cloud software. By capturing important business data and automatically inserting it into the CRM, it becomes easy to customize digital solutions as well as create new functionalities that match specific business requirements.
Facilitates Business Collaboration
Some licensed software products offer limited accessibility and require dedicated devices to work. This is particularly counterproductive for Agile development teams as it hinders effective collaboration. With a SaaS solution, team members are able to collaborate under the same software suite in real-time, hence improving their productivity.
SaaS is also smart and secure, allowing workers to intelligently store data in a centralized location without losing it. This eliminates the need for multiple review emails, systematic folders or master documents. Moreover, it also becomes possible for workers to work remotely.
Lastly, most business leaders highly depend on reports and insights to stay ahead of the competition. Using SaaS solutions, they are able to access real-time insights, making it possible to reach important business based on facts.
Superior Customer Service
According to a survey conducted by American Express and Harris, poor customer service cost U.S. companies at least $62 billion annually. The same report showed that 80% of customers have scrapped a purchase plan due to poor customer service, with 67% hanging up as a result of not talking with a real customer service rep.
These numbers are a clear indication that delegating telephonic assistance using automated software doesn’t relate well with customers. For years, businesses have been employing SaaS CRM system implementation to help customers easily find solutions and respond to their queries faster. For a small business, this is particularly important as 100% customer satisfaction can lead to repeat customers.
Improved Data Security
Data breaches incidents are becoming increasingly prevalent and costly. According to a report published by IBM, it is estimated that the average cost of a single data breach is $3.92 million. Not forgetting the reputation damage that comes with it.
One of the biggest concerns facing entrepreneurs is the security of their data, which is why most prefer storing it in-house. The only problem with storing important business data in local servers is that it can be damaged or even the physical hardware destructed.
However, with a cloud-based SaaS system, all the important business data is safely stored on the servers of your SaaS business provider. In case an unforeseen disaster hits your business premises, your business can continue functioning without having to worry about the safety of your data.
Reduced Application Cost
Another beauty of a SaaS solution is reduced application costs. Higher costs of purchasing the underlying infrastructure, implementing software solutions, and maintaining it can significantly affect individual business units or even the entire business. SaaS solutions allow you to enjoy secure and flexible systems at a lower cost, allowing you to invest your resources in other areas.
Along with the reduced costs, the subscription-based nature of the SaaS business model gives small businesses flexibility and the privilege of enjoying tailored solutions that meet their specific needs.
The minimal initial investment and reduced hardware costs lower the investment risks, making SaaS a popular choice among business owners. Even better, business owners can add or remove the number of users in their system and also control their entire business functionalities.
Final Thoughts
As a small pop and mom business, it can be difficult to compete with large multinationals that have a monopoly over technical expertise, and financial muscle to spare. However, one of the best tools to help improve your computing side competitiveness and give you an edge over the larger firms is to rent a Software-as-a-Service (SaaS). Using this cloud-based rented solution, you are able to bridge your business needs, streamline your processes, save on application costs, and access your information from anywhere without having to commit to lengthy contracts.
