How to grow your business with a SaaS startup? SaaS industry growth

3 clear signs that your business needs SaaS application

Paloma Velasco · 6 min read

We close 2021 with a year in which SaaS industry has seen exceptional growth. SaaS applications have become the new normal in today's business environment. Organizations, small or large, have successfully introduced these applications or are in the process of doing so.

But why, we ask, what are the advantages of software as a service (SaaS)?

The list of benefits these SaaS applications offer is extensive. We know for sure that these applications take install process out of the process. In addition, they eliminate manual work, which minimizes the margin of error and adds extra security to the process.

Not only that, but one of the things that makes them most attractive is their upfront costs. SaaS applications offer lower upfront costs than downloading and installing traditional software, making them more affordable for a more significant number of companies.

This is just the beginning. Let's tell you why not using a SaaS application will be one of the most unwise decisions you have ever made.

What makes a SaaS application relevant?

The first and most crucial point is the security and privacy that a SaaS application will provide to your company and data.

The SaaS software customer can use it without worrying about anyone accessing their data. As it is installed on a central server and not on customer machines, the risk of internal security breaches is minimized.

Another interesting point that companies value is that the vendor is responsible for providing customers with critical services such as technical support, maintenance, and software updates.

The most important points and key features that make SaaS applications a must are:

Ability to structure a multi-tenant

The multi-tenant model is an architecture in which several customers share a joint code base. In addition, the infrastructure of the software application is maintained centrally. Each customer of the SaaS application is called a tenant and can customize some parts of the application.

Automated user provisioning

Customers must be able to access SaaS applications on the fly. The immediacy of this process makes automation a must, saving the HR area a lot of time. Most SaaS applications offer this feature to their customers. This functionality also allows automation adding new users or changing their role on demand.

Easy tailoring

Easy customization gives users the advantage of modifying applications to suit their business processes without affecting the shared infrastructure. Customizations are unique to each company or user and are preserved through upgrades.

Competitive pricing through subscription billing

How to price software as a services? Is a question that suppliers ask themselves. SaaS applications are typically priced on a subscription basis. This feature gives users the ability to purchase the SaaS application at any time and cancel the subscription when they no longer want to use it. The pricing of SaaS applications may vary from one vendor to another, also depending on the number of features they offer to users. The price is usually lower than the price of the software previously consumed in the markets. When you buy licenses for systems that you install in your internal infrastructure, if you no longer need them after two months, you cannot return them or stop paying. However, with SaaS applications, you can change, pay for all the services or only for what you are interested in, change the number of users, and many other benefits.

Maximum data security and reduced data breaches

Although SaaS applications are shared by multiple tenants, which may compromise user data security, nothing could be further from the truth. Each user's data is encrypted, passing all security standards and guaranteeing users' peace of mind. In addition, an essential part of SaaS applications will be the design of an efficient fundamental management framework. There will be no need to worry about powerful password managers such as Keeper Security.

Advantages of SaaS

As mentioned above, SaaS applications eliminate the need for companies to manually install and run applications on their computers or in their data centers. This eliminates the expense of purchasing, licensing, provisioning, installing, supporting, and maintaining software.

Not only this, the main advantages of the SaaS model integrate benefits such as:

24/7 access

A significant advantage of SaaS applications is that they can run in a web browser, regardless of the operating system used to access them. This means that users do not have to worry about whether the operating system will be compatible with the SaaS application or not. SaaS software can even be used on mobile devices, making it easy to use the software on the go.

Minimum initial investment

Years ago, before the introduction of Saas applications in the market, the cost of installing the software was borne by the customers. The price was usually high, and not all companies could afford such a high initial outlay. With SaaS, however, the vendor takes care of the software maintenance. Customers do not need to purchase, install and maintain the software.

Automatic updates

The vendor can update its software centrally with SaaS applications without adversely affecting users' business operations.

Scalability without barriers and a lot of flexibility

SaaS is designed for any business but is ideal for companies with reasonable projections and are in high growth stages because of its ability to scale and grow as the business grows. In addition, a strength of SaaS applications is that you only pay for the features you want to use. So you can easily choose a SaaS plan that fits your budget and current operational needs.

Ability to integrate enterprise software

Access to enterprise software is probably one of the most significant advantages of SaaS applications. The applications allow companies to subscribe to enterprise-level software, such as marketing platforms and sales CRM, and thus integrate proprietary tools within the organization.

Borderless marketplace

SaaS providers can offer this product to the majority of the market and do not limit themselves to a specific market segment. This means that the SaaS tool can be affordable and accessible to companies of all sizes. Users gain access to services that would otherwise be unavailable, thus improving overall opportunities, productivity, and business services.

Data processing and analytics capabilities

SaaS applications allow data to be captured and then used for analysis. Companies with SaaS software often have access to visualization tools and reporting to provide valuable insights into business processes and workflows.

Why your company needs SaaS? 3 clear signs that your business needs SaaS

Businesses today happen to be in the cloud, where they store all their data, and it is the best management option. In turn, they are investing in SaaS solutions, avoiding traditional software.

As a company, you should ask yourself some questions that will be indicative of whether your company needs SaaS:

Do you want to increase your company's sales figures?

How does sales and marketing work in your company?

What part of your company would you like to change?

With the answers to these questions in hand, how can you determine if your company is ready to switch from traditional software to cloud-based software?

Here are 4 areas where you can implement SaaS tools for your business

Team collaboration

Team collaboration is vital to any business, especially on remote workdays. SaaS tools give you a better view and understanding of what your team members are doing. It's also a crucial tool for boosting productivity by enabling teams to work more efficiently. In addition, a SaaS tool can uncover your company's strengths and weaknesses, allowing you to progress and make improvements.

Automated billing systems

Money management is a sensitive area. Billing must be seamless and accurate to provide a secure shopping experience for your customers. Manual solutions can be a problem for your business as it grows. Automated billing systems can help you avoid spending time on your business finances and dedicate this time to other areas.

Customer Support

Customers are the lifeline of your business. Keeping them more than satisfied with quality products and after-sales service is crucial to the fortunes of your business. CRM (customer relationship management) software can simplify this cumbersome and complex process. CRM software can organize your contact information and manage relationships with potential and current customers, clients, and other contacts.

IT Security

Businesses have multiple security issues in phishing, online fraud, and other emerging online threats. IT security software can combat these threats and keep your crucial business data, financials, and other areas of your company safe. In the absence of dedicated SaaS security software, a potential security breach can cost your organization dearly.

Key questions to ask when choosing SaaS applications for enterprises.

Is it a SaaS platform?

Sometimes you have to be careful when choosing and looking at what you are buying for your business. Some hybrid solutions are labeled "full SaaS products," but that's not entirely true. Beware of counterfeits. Trustworthy SaaS solutions only require a browser to run, and everything is stored in the cloud.

If the product requires you to install special client software or you request to move from your current hosting provider to a new hosting provider, you should exercise extreme caution and think before committing to it. A reliable SaaS business model does not support hosted software solutions.

Is it reliable?

When choosing a SaaS application, security and uptime are the two most essential requirements. Although SaaS CMSs are designed for scalability and reliability, not all SaaS CMS providers deliver, even if they have created them themselves.

A SaaS tool must easily support a substantial increase in web multi-site traffic without having to lower the user experience, which is the main requirement that we must maintain, even improve every day, and that will make our company stand out.

Is it scalable?

The most important thing for a company is its growth, so you do not want the growth of your business to be limited by technical needs. An on-premise CMS requires additional bandwidth or larger servers to expand the size of the online project. CMS SaaS providers offer and guarantee the scalability of their products. But do not always rely on them, and Mylenio recommends that you ask for examples and demos. Also, always check if the platform can manage multiple sites from the same control panel.

What is the service level agreement guaranteed and offered by the SaaS provider?

In any company, the most important thing is the customer, so the customer should always receive the best service and experience. The Service Level Agreement (SLA) establishes the customer's benefits and the service's computable aspects, such as quality and availability. The SLA determines the consequences of not meeting the standards promised and guaranteed by the provider.

Minor interruptions can have severe consequences for a company, so having this agreed upon in advance will help mitigate significant evils. Ensure you have covered the possible misunderstandings in the SLA, such as that it fits your business time zone and not that of the country in which the software is based or developed.

For example, your company may be located in a part of the world that makes the SaaS provider's availability guarantee (during labor hours) useless.

To Sum It Up

There are hundreds of SaaS applications available for companies to try according to their needs. The most important point here is; what are your company's needs. To choose the SaaS that best suits and has the most potential for your company. The first thing you have to do is analyze your needs, see the structure of your team, understand your workflows and then invest in a SaaS application that fits your profile and grows as much as your company.

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