SaaS, or Software as a service, is one kind of business model. Software as a service is a popular term in the era of cloud technology. The main benefit of the SaaS Business Model is reducing cost. People are focusing more on these types of cloud services. This article is about the SaaS business model, ideas, SaaS cloud service providers, and examples.
What is SaaS Business Model?
SaaS means the software as a service. This is a business model of cloud service providers. It is a software licensing and delivery model. This software is licensed on a payment basis and centrally hosted. Sometimes, it is called on-demand software. Microsoft introduced the name “Software Plus Service.” The user gets access to this software by a browser.
Who Will use SaaS
Intelligent and frugal people love SaaS. It was fun. However, many small and medium businesses come forward with these types of cloud solutions because it is a cheap distributed application. As a result, small businesses use it to reduce costs. Almost all business models have SaaS software. It just needs to be customized.
Most Common SaaS Business Model Service Provider
1. Asana Collaboration
Features
- Asana’s free version supports up to 15 team members
- Suitable for mom-and-pop shops
- don’t need more advanced features
- built on HTML5, so it features rich design functionality
- easy, attractive task management.
2. TSheets
TSheets does everything as per requirement.
Features:
- giving deep customization options
- in-depth reporting
- User-friendly navigation
- and an open API for third-party integrations.
- Hubstaff is essentially a compact employee monitoring tool.
3. Hubstaff
Features:
- Hubstaff lets you take snapshots of employees’ screens,
- monitoring web and app usage
- Track movements via the mobile app’s GPS.
4. Microsoft Power BI
Microsoft Power BI is a powerful SaaS service.
Features:
- A free tool that lets you drag-drop, analyze, and customize data up to 1 GB.
- Upgrade for just $10 per month to increase your data tenfold.
- Give you access to custom content packs and the capacity to interact with other Microsoft Office 365 Microsoft users.
5. MailChimp Email Marketing
MailChimp is the most common and capable email marketing service, irrespective of your price level.
Features:
- It offers a rich, free plan
- tons of third-party integration
- It’s got many email templates that help to fire off emails at a rapid clip.
Benefits of Using a SaaS Business Model
Software as a service is the perfect and standard solution. It eliminates the hassle of installing the software application. There is no tension between maintaining software bug fixing because the cloud service provider manages applications, servers, storage, runtime, data, middleware, OSs, virtualization, and networking.
Popular software as a service provider offers customer relationship management, email, collaboration, healthcare-related applications, etc. It has internet-based security.
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Reduced Costs
In software as a service, all the required software services are readymade and available, so there is no need to invest more in hardware and software. The licensing fee is too low for any small business to afford. This is a rental service, and the cost is as you go.
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Easy Integration and Functionality
Software is a service, and you do not need a software engineer to operate it. Anyone can customize from the front view. The reports are customizable, and business leaders can make decisions easier by seeing them.
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Easy to Use
The software as a service is easy to use, so any employee of your organization can use it. The database is highly secured, and the service provider also provides tutorials.
Some SaaS Tools for Your Businesses
Some analytical tools are required to operate a business. These tools make your job easy. Software as a service offers such kinds of tools. In fact, the corporate leader will be speechless by seeing the customized report. These SaaS Business Model tools help you to make decisions quickly. Some available tools are:
- Research and development (R&D)
- Production
- Sales and marketing
- Operations
Research and Development
R&D is the “Think Tank” of business. Business leaders focus more on research and development. To implement the big data concept, R&D is a must. Effective teamwork is the key to making commercially fruitful concepts today. We know the cliché “Think outside the box,” but now it turns to “Think outside the office.”
Slack: One kind of chat app. It collaborates with all users and shares previous knowledge.
Real-time Board: It will boost online partnerships with loads of built-in extras, like icons, Google Drive integration, and templates.
File sharing: Multiple users share their files. Google, Microsoft, and Apple all have this kind of file-sharing facility.
Workplace by Facebook: The social magic Facebook collaborates, coordinates with all users, and integrates with Dropbox.
Production
The production module is the main module for reducing costs. It has inventory tools, work in process, and other cost factors. If production costs can be controlled, the cost of goods sold will be reduced.
Sales and Marketing of SaaS Business Model
The sales and marketing module includes customer relationship management and supply chain management. This module calculates receivables, cash flow, and many other issues. Sales and marketing enable business leaders to make decisions and forecast demand.
Operations
The operational module includes human resource management, payroll, and other operational software. Human resource management software manages employee particulars, such as salary, promotion, etc. Payroll management manages wages, bonuses, salary, and all other payment-related functions.
The SaaS Business Model became popular in the year 2000. Since then, It Has become cost-effective. It has the facilities of pay-as-you-go and an easy interface. Any business with small resources can continue with the help of SaaS.
Nasir H is a business consultant and researcher of Artificial Intelligence. He has completed his bachelor’s and master’s degree in Management Information Systems. Moreover, the writer is 15 years of experienced writer and content developer on different technology topics. He loves to read, write and teach critical technological applications in an easier way. Follow the writer to learn the new technology trends like AI, ML, DL, NPL, and BI.