In the last few years, SaaS products have spearheaded global digital transformation. Small and large global teams are introducing this type of technology into their standard workflow, reaping major benefits from automation and error-free data tracking.
The research data indicates that the SaaS market will grow to $908 billion in 2030 at an average annual rate of 18.7%. This isn’t that surprising, given that just about any type of company can benefit from these programs. Furthermore, there’s no limit to how many SaaS you can use, as each one can provide specific benefits to your business.
Understanding SaaS and digital transformation
The SaaS model has become, by far, the most dominant software model on the market. Approximately 38% of companies only use SaaS for their operations, which makes sense, given the adaptability these platforms provide.
Most notably, companies don’t use SaaS because of the benefits they provide but because of the risks of not using them. These digital solutions are cost-efficient, simple to use, and allow collaboration between global teams. Despite a few drawbacks, such as loss of control, the benefits are so glaring that businesses can’t allow themselves not to use SaaS solutions.
SaaS compared to other software formats
SaaS efficiently eliminates many risks of traditional software. First off, these platforms are much faster to catch on and don’t require installation and updates. Companies usually offer packages according to companies’ requirements, so you can easily eliminate features that you don’t need.
Secondly, traditional software requires in-house infrastructure and an IT team, both of which can be very expensive for small brands. You also have to consider that SaaS has fantastic scalability, allowing companies to increase use and spending as their business grows.
Despite everything, there are cases where it might be better for companies to use traditional software formats. This happens in situations where a business has specific niche requirements or doesn’t want to rely on third-party providers for security. In these situations, it might be better to pay for an external team to create proprietary software.
If you still have questions about outsourcing or want to assess potential outsourcing costs, we suggest that you check out this nifty online calculator.
Reasons why SaaS spearheads digital transformation
So, why choose SaaS?
Basically, this model provides a high degree of adaptability that you won’t find with standard software. It’s also geared toward mass use, which means that any person can utilize the basic features even if they have limited knowledge of the tool.
Right now, almost 99% of brands in the US rely on at least one SaaS for their daily processes. Its impact on digital transformation is undeniable, and it’s only a matter of time until all our processes and data are stored in the cloud. Here’s exactly what to expect from these products:
- Cloud-based
When it comes to SaaS, everything starts from cloud technology. With it, you can access and store all data online without relying on in-house systems. Cloud-based technology is vital for brands that work with large files, as it allows data transfer from one place to another without having to rely on flash or hard drives.
The increased SaaS popularities goes hand-in-hand with new business practices where brands outsource work to foreign countries as a cost-saving measure. Data indicates that 62% of companies save from 10% to 25% when outsourcing, while other 38% of brands can save up to 40% with this business model.
So, by having all this data easily accessible via the cloud, you’re ensuring that team members from various parts of the world can access and work within the same dashboard. Among others, SaaS technology was one of the main reasons why so many businesses managed to survive the Covid crisis.
- Incredible fast
The SaaS model is, in every way possible, faster than the traditional solutions. First of all, it takes just a few hours to introduce Software-as-a-Service to the company’s processes compared to traditional software, which takes several days.
Besides having to install traditional software, the onboarding is also tedious, stealing several work days from a company. In comparison, SaaS solutions don’t require installation or updates, and due to their simplicity, it doesn’t take much for employees to get used to basic functionality.
However, the biggest difference is noticed when companies decide to develop their own solutions. Creating software from scratch takes months and months and can be quite exhausting. And while custom-made solutions are usually superior in terms of features, SaaS allows much faster implementation.
- Product versatility
Given that SaaS is exclusively sold online, it’s much easier for brands to launch the software and start selling it to a global audience. In other words, developers can reach their target audience in fewer steps, reducing their overall costs.
Due to this, it’s much easier to enter the SaaS market than the traditional software market. This results in more available solutions and product versatility. Nowadays, you can find a SaaS for just about any industry and business process ranging from sales to marketing, logistics, operations, finances, human resources, and legal.
The highly competitive nature of the market also means existing software is continuously upgraded, and consumers get access to new functionalities all the time.
- Scaling
The SaaS model is also fantastic for scaling. These products were initially created to cater to big and small companies alike. Regardless of your company’s size, you can find a solution that will fit your needs and, more importantly, budget.
SaaS providers usually have several plans at your disposal, ranging from single entrepreneurs to small teams and large corporative plans. Unlike traditional software, where a product is always the same, you can get the features that you need and avoid paying for those that you don’t.
Many programs rely on a pay-per-usage system. These are generally more expensive than the regular monthly plans, as you’ll drain credits rather easily. Then again, the credit system can work great for smaller companies that use the tool several times a month.
