Software-as-a-service (SaaS) has been around since about 2000 and is a cost-effective alternative to IT’s traditional use. You buy or build your own IT infrastructure, install the software yourself, configure the applications, and the IT department runs the maintenance.
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Even though SaaS applications have been around for a while, many companies wonder whether this application is a viable option for them.
Are you wondering whether SaaS apps are suitable for your business?
Read this blog post, and we may answer your questions.
What is Software-as-a-Service?
SaaS, or Software as a Service, and more commonly known as ASP (Application Service Provider) services, offers a subscription to IT services through the cloud.
In other words, the software you want to use is provided and managed by a provider, and you can access that software through a browser or mobile device.
How important is the cloud?
This is how important cloud is: Your business can grow by 19.63% if you move to the cloud.
This is what emerged from a report by Vanson Bourne back in 2014 after they interviewed 460 decision-makers. In this study, a record was made of the impact of switching to the cloud.
Ten years ago, many companies were not yet moving to the cloud at all.
In fact, in 2008 – only 12% of businesses were using cloud-based apps.
Today, in 2020, it is a completely different story, and it is no longer a matter of “if” but “when.”
For example, an IDG CIO tech poll showed that the biggest increase in IT spending in 2020 would be toward cloud computing strategies.
That’s why we’re seeing the number of companies moving their operations to the cloud growing rapidly. In fact, 73% of companies want to move almost all their apps to SaaS by 2021.
SaaS is literally taking over the world and the cloud computing market.
So it’s no surprise that the global public cloud services market is expected to grow to more than $ 200 billion in 2020. In 2019, that figure was only $ 175.8 billion, Gartner said.
Who uses SaaS applications?
Businesses use an average of 16 SaaS apps per day to run their businesses, and if you’ve used SaaS – personally or professionally – you’ve no doubt found that SaaS is right for everyone.
Have you signed up for Dropbox to store your photos online?
That is an excellent example of SaaS.
Another example could be work-related. As an affiliate marketer, when you use an email marketing platform to send emails to your customers, you are most likely using a subscription-based service (SaaS).
For medium-sized companies, in particular, SaaS is a hassle-free and cost-effective solution, offers new possibilities with flexible costs, and is easy to maintain and install.
You do not need to have a powerful computer or your own server and do not have to employ an IT specialist to store your company data in the cloud. With SaaS, multiple users have access to the extensive database anytime and anywhere where there is the internet.
The SaaS revolution in CRM software
When it comes to CRM software, the introduction of the SaaS model is a true revolution. CRM is no longer used on the basis of purchase and ownership, but as a subscription model in which the services are outsourced.
CRM is expected to further drive the adoption of the SaaS delivery model, according to Analysys Mason’s estimates.
The reason for the growth is due to the many benefits that SaaS CRM applications offer companies. And the assumption that only small businesses use the cloud is a myth.
Of course, this was not always the case.
In the beginning, the business software world laughed at you when you talked about moving your business apps to the cloud. All of this is now changing as companies have shown that they are able to increase their sales by moving to the cloud.
In fact, larger enterprises are expected to overtake SMEs in 2022 when it comes to deploying SaaS.
Let’s take a look at how your company can benefit from implementing a SaaS CRM model.
Main benefits of SaaS CRM for your business:
- No high initial investment
With Saas, you pay according to consumption, without high costs in advance. You only pay monthly or annual subscription costs for the use of CRM as a Service.
That is one of the reasons why SaaS is a favorite of smaller companies and start-ups, which often do not have enough money to invest in a CRM solution while it is a business-critical application.
Consider the initial investment required when you have all of the data below, compared to SaaS – which is managed by the vendor.
So, instead of massive upfront payment with an on-premise solution, SaaS can be seen as an operational expense (which most CFOs prefer).
- A cost-effective option
This is one of the most important benefits; SaaS CRM can really save costs.
In fact, “lower overall costs” is the second biggest driver for SaaS adoption.
But if you calculate how much it costs to purchase the necessary hardware and hire and manage the people who have to maintain everything, the SaaS approach turns out to be the cheapest option.
In other words, if you use SaaS, you don’t have to spend money on additional hardware or consultants for the technical maintenance of the system.
- Always available
The SaaS model offers you access to your CRM database anywhere, at any time, and on any device.
With 99% uptime, all you need is an internet connection and a web browser. SaaS-CRM is hosted in the cloud, which is why it is very suitable for employees who spend a large part of their time on the road.
- No, IT problems
A problem-free IT life that is undoubtedly the greatest sales asset of SaaS-CRM.
The subscription-based price entails practically no costs for system maintenance, such as for backups, updates, or security.
The user does not need to buy, install, or update any hardware or have a local server installed. Hiring IT staff is therefore also not necessary.
There is another reason why your business will grow faster:
By moving to the cloud, you will reduce IT spend by 15%, and IT maintenance costs will drop by 16.7%.
A SaaS provider hosts SaaS CRM solutions. The customer does not have to bother with upgrades, installations, maintenance, or connecting new users to the system.
The SaaS provider’s responsibility is to deliver the product to the customer and ensure that the IT software works as it should.
- Expand and integrate as much as you want
A few years ago, the great fear when using new software was the conflict with your day-to-day work, especially with the programs you were used to.
But technology has not stood still. SaaS CRM users can integrate with already available software and extend their CRM solution just like other customers would.
This means that you can continue to use the software you are used to, such as ERP systems or email clients. Usually, these can be easily integrated into the SaaS solution.
- High-security level
According to a study by LogicMonitor, 66% of all IT professionals say security is their number one concern when adopting a cloud business strategy.
The SaaS supplier is responsible for the maintenance of the data that the customer entrusts to him. It is, therefore, extremely important that the customer data is secure.
So it is only logical that securing the application is essential. That is why SaaS providers’ servers are spread over multiple geographic locations, and automatic backups are made.
- Easily scalable
Finally, the SaaS CRM model can be scaled up quickly. If your company decides to increase the number of CRM users, this can be done within one day.
No lengthy application procedures and test phases, no changes to the IT architecture; no need to install additional software and wait. Only the subscription has to be adjusted, and the users can get started. And if you need more storage space or additional service, the procedure is the same: it can be used quickly and almost immediately.
Speed is the main reason why companies are switching to a SaaS model.
Companies that have switched to the cloud are already experiencing how you can scale quickly.
In fact, 20% of companies saw an improvement in time to market – while their competitors using an on-premise solution lag far behind.
Conclusion
SaaS has many advantages. Companies worldwide opt for a cloud solution, which makes it easy for them to hire services.
SaaS-CRM has the following important advantages:
- No IT-related problems. You don’t have to buy, install and maintain hardware nor software;
- no high pre-license costs and extra costs for maintenance or upgrades;
- easy to adapt as SaaS offers a flexible and scalable IT solution that is suitable for a whole range of other business applications.
Last Updated on May 20, 2020
