Earlier, companies were required to purchase, build, and maintain their IT infrastructures in spite of exponential costs. SaaS provides companies with an alternative. They can plug in and subscribe to all services built on shared infrastructure through the Internet. The SaaS model has popular in recent years because of its various benefits it offers to enterprises of all sizes and types.
Various benefits that SaaS offers to businesses are:
SaaS applications are available from any device—anytime from anywhere. As most people know how to use the Internet to find what they need, SaaS apps tend to have high adoption rates along with a lower learning curve.
Lower Initial Costs
SaaS applications are based on subscription. No license fees mean lower costs with no upfront investments. The SaaS provider manages the IT infrastructure that minimizes IT costs for hardware, software, and the people needed to manage everything.
Because the SaaS provider takes care of all updates and upgrades, there are no patches for customers to download and install. The SaaS provider also ensures availability, so customers don’t need to add hardware, software, or bandwidth as the user base widens.
SaaS providers with true multitenant architectures can scale indefinitely to cater customer demand. Many SaaS providers offer high customization capabilities to meet all needs. Plus, many provide APIs so that you can integrate with existing ERP systems and other business productivity systems.
Why SaaS is Popular for the Enterprise
The popularity of SaaS is increasing because it eases deployment and minimizes customer acquisition costs. Developers can support many customers just with a single version of a product. This approach is known as multitenancy, allowing businesses to scale as fast and as much as needed without replacing costly infrastructure.
Why SaaS is Popular with IT
As per a recent survey of a thousand IT professionals by Forrester Research found that they are shifting to hosted (SaaS) products as a way to offload management of critical applications such as HR and CRM. Further, the subscription-based SaaS pricing model can keep up IT budget costs streamlined or less than packaged or homegrown software.