SAAS mean software as a service in cloud computing. In which consumers have to pay each month or year for license and they don’t need to have a server and don’t need to install on the computer. Consumer (one or thousands) can access the software (with unique username and password) and it’s all part (based on subscription plan).
There are various saas based business apps that automate and run the process and system of the business. There are various software as service available in the market from HR to finance and graphics designing to sales and marketing. Most of the applications are integrated for remote collaboration, sharing, data storage, productivity, reports etc.
The SAAS (Software as a Service) commonly have three selling model so far. SAAS for single user personal use. SAAS for single user commercial use. SAAS for multi-users commercial use. Now software and companies providing software though SAAS Cloud Computing will be more profitable in the future and the cost of using the computer in business will become 100% higher than today.
But yes, it comes with many advantages. Many advantages are overly marketed and hyped so that people can feel that saas is important. If you haven’t know much about cloud computing then please read the following articles:
So Let’s talk about in details about the advantages of software as service (SAAS) in cloud computing.
More profit and predictable income:
Saas business model of cloud computing increases profit 100 times for software companies and IT related businesses. Software as a service means you’re paying rent for using software and computers each month instead of buying one time. Companies do not charge much money for updates so far. But after cloud computing even to use operating system, graphics design software, account software etc. on your computer you have to pay money each month. It means it’s an advantage for companies, they will earn more profit. And disadvantage for common people and small business owners.
Companies already hiring less people, the infrastructure of saas cloud computing is less manageable and companies trying to automate everything and in this billion dollars companies need only 10 to 20 employees instead of 2000.
You can say it’s advantages of saas cloud computing companies and business. And it means rich companies will become rich and no place for the poor in the market. In other ways, the poor remain poor and rich become richer.
Improvement in Product/Services Quality:
When software will get updates each month with new features based on users data and uses it will impact positively the quality of the end product. SAAS companies will definitely use users business data to provide personalized/auto-scaling services in the product through Artificial intelligence. The team members can access the latest and advanced features of the software. It will help them to design, create, develop, write, plan product development and services process more accurately and easily.
Less management and more productivity:
Small businesses, government offices, banks etc. don’t need to manage each part of software such as installation, licensing, training, future demands, hardware (servers) and workforce for consumer services. Most of the things will be automatic. It means the workforce can spend time on things that speed up the consumer services, improve the quality and help to earn more profit. At the end of the day, the product will be higher in the workplace where SAAS based applications are in use.
Decrements in software piracy:
The greatest benefit of software as a service is that it will decrease or stop software piracy and illegal distribution of software. It will not only increase the profit of the sellers but also increase the profit for real users. For example, if you’re using the licensed software in your company but your competitors using pirate software. It means your competitors are saving money by using a pirated copy. They are selling the services at the lower price than you. And it’s tough for you to grow your business in this situation.
But after SAAS, your competitors will use the licensed software because they can’t download it from external sources rather than genuine sellers. Later, they can’t bear that cost because they never used licensed software’s and their selling price is lower. In the end, genuine software users will grow the business faster. Genuine up to date software also increase the quality so it’s a win-win situation in the market by using saas cloud computing for small business owners.
SAAS provider using auto installers in the system after purchase rather than providing a full copy of the download. It will become difficult to re-distribute the materials for pirates.
Less onsite IT infrastructure:
There are many big IT companies providing software as a service on their own computers and servers for end users. It means you don’t need to buy a server to maintain and manage data and information. Everything will be installed on the third party. It will save time, reduce cost and Increase profit and provide flexibility in uses.
There are many other advantages of saas in cloud computing such as data storage, personalized computing, sharing and collaboration, on-demand scaling etc.
But there are also many disadvantages of software as services such as small business and computer users will have to pay each month to use their computers. The owners of data are the user, but companies use that data for free to manipulate, calculate, manage, arrange the process and systems for the users, and they will earn regular monthly income from that, no matter their users are earning money from that or not.
But in conclusion, I will say that it’s SAAS good for companies and small business owners who already are profitable. But don’t look good for self-funded startups, freelancers, home-based business so far.