SaaS solutions were quite an innovation when they entered the computing world way back in the 1990s. Companies were no longer burdened with the expense and disruption of on-premises installations. Finally, multiple users could access the same application, centralize data, and collaborate company-wide. These once ground-breaking benefits sound pretty basic now. Indeed, SaaS has come a long way since its inception. Still, there's a lot to think about if you are considering a
We've put together a comprehensive overview of the benefits and challenges involved in implementing SaaS so you can make an informed choice for your business.
What is SaaS?
Software as a Service is a method of software delivery and licensing in which software is accessed online via a subscription rather than purchased and installed on individual computers. It's a way for businesses to introduce new tools to their organizations without having to own the infrastructure necessary to run them.
SaaS applications are also known as web-based software, on-demand software, and hosted software.
A SaaS provider runs the applications on a remote server and also provides IT, security, and updates. Saas streamlines processes while relieving business owners of many expenses and responsibilities. Providers generally charge users on a subscription basis for their service.
Benefits and Challenges
Top 4 benefits of SaaS
SaaS solutions can save money for your organization, and they can also improve efficiency. Here are some of the leading benefits of SaaS:
Lower TCO (total cost of ownership)
Application implementation can be costly. Software as a Service allows you to save upfront on hardware installation and software implementation. With a subscription-based solution, you can budget for your software use, knowing what it will cost each month. True, there are costs associated with the initial implementation of a SaaS product. But consider the total cost of owning, maintaining, securing, troubleshooting, and backing up your application. You may well find SaaS more cost-effective than an on-premises solution.
Scalable and remote-friendly
Since SaaS solutions are cloud-based, they are ideal for rapidly growing businesses. In addition, cloud-based applications can be easily accessed by remote workers. Remote access has become increasingly important in recent years, with more and more employees working away from the office. Your team can stay lean, agile, and mobile regardless of your industry.
Application updates can be expensive and disruptive. Software as a Service providers are responsible for taking care of the latest updates to the software solution, so you don't have to worry about them. That frees up your IT department to focus on more critical business matters. For instance, Sana Commerce Cloud provider releases
Security is vital. Regulations require that SaaS providers adhere to
Better for the environment
Cloud-based SaaS solutions produce fewer carbon emissions because they use fewer servers and are powered more efficiently than legacy, on-premises solutions.
Many enterprise companies still run their legacy systems on-premises. But, the world is becoming more aware of sustainability issues, and governments are placing increased importance on sustainability policies. Eventually, e-commerce businesses will have no choice but to adapt.
A few challenges
Though SaaS has several benefits, it's only fair to mention the challenges.
A risk associated with SaaS is the possibility of poor integration with your other systems. Work with an experienced SaaS provider who can guarantee a project plan that accounts for any potential vulnerabilities while you migrate or implement new solutions.
Another reason to work with an experienced SaaS provider familiar with your industry is the challenge of access control. Administrators of these tools must guarantee oversight and be aware of what is being accessed and by whom.
If your organization is moving from on-premises software to SaaS, the initial implementation process may be time-consuming, depending on the nature and scale of your project.
Weighing long-term goals against short-term challenges will help determine if your project is worth pursuing.
A common pitfall when implementing SaaS is neglecting the SLA ( service level agreement). The SLA document defines what you can expect from your provider and what remedies are available if something goes wrong. It's worth spending time upfront to ensure everyone is in alignment before a project begins.
When you leverage SaaS for e-commerce, you remain active in your company's recurring purchase processes. You'll benefit from continually assessing your business's needs and strategizing with your service provider.
Let our experts help
Whether you're thinking of implementing a SaaS solution for strategic reasons or seeking to future-proof your e-commerce business, choose a partner and a platform that will ensure success.
Our B2B e-commerce platform was built specifically to address the concerns of B2B organizations. With our B2B e-commerce platform, the answers are simple — and they're built into the way our product works with your Microsoft Dynamics ERP system.
By Sana Commerce,