Home Business 8 Advantages and Disadvantages of Software as a Service (SaaS)

8 Advantages and Disadvantages of Software as a Service (SaaS)

by William Gist

Due to the fact that technology is constantly developing, companies are tirelessly working on implementing new services that can help them grow their business and increase revenue. Cloud computing services have proven to be quite essential and Software as a Service (SaaS) is one of the widely used ones.

What is Software as a Service?

source:bigcommerce.com

In the past, every company had to possess an internal infrastructure. As you can assume, this used to be a significant investment that every business had to make which was quite troublesome for small, start-up companies with low budgets. However, this is no longer the case.

Put in layman’s terms, nowadays, instead of purchasing all the equipment, businesses are able to outsource them. This means that this service is managed by a third-party provider and that it is, together with all the necessary applications, available to their clients for a reasonable monthly fee.

Just like any other kind of software, this one comes with numerous benefits. After all, this is to be expected since it has become so popular, right? Nevertheless, there are also some downsides to it that you should be aware of to be able to make the best possible decision for your business.

What are the advantages?

Firstly, we are going to start with these. As you will see, many of these will help you to greatly improve your business, save money, and at the same time, increase your profit.

source:infoworld.com

It is cost-saving

The fee is something that interests you the most, and that is why this is the first benefit of your list. Due to the fact that you won’t have to purchase expensive equipment such as software and hardware and also employ professionals who are going to maintain it, SaaS turns out to be quite cost-saving.

Yes, there is an expense that you have to pay to the provider who is going to outsource this service, but there is another thing. Generally speaking, providers offer numerous plans with different types of services. This means that you can just choose the one that contains everything you need, and therefore, you won’t have to pay for some unnecessary aspects of it. Let’s be honest, paying for something that you don’t even use means that you would be throwing the money down the drain.

Quick implementation

source:insight.com

Due to the fact that software is located on a cloud and it can easily be installed, it means that the whole implementation process is quite short i.e. you will be able to use it very soon. This is a great advantage in today’s fast-paced world when things change at the speed of the light.

The last thing that any business owner wants is being forced to put everything on hold while new technology gets installed. In some cases, this can result in some significant losses for the company.

It is easily accessible

One of the main reasons why companies opt for outsourcing this service is the fact that they can access it at any moment and from any location. All one needs is a computer and a stable Internet connection. Let’s face it, the chances of not having these at your disposal are quite slim nowadays.

This is another important benefit if you travel for work oftentimes and conduct the business outside the office. This means that at any moment you will be able to finish a task quickly and effortlessly with all the data necessary just a few clicks away.

Have insight into customer success

source:lvivity.com

Surely you agree with us that the customers are the most important aspect of every company. The main job of every business owner is to ensure that they are satisfied with their service and this software provides you with accurate data. As you know, there are several factors that can affect the customer success and the best way to figure out at what level their satisfaction is and how you can improve it is to use one of the several metrics that you can find on smartkarrot.com.

It is upgradable

If you were to purchase all the equipment for the IT department you would also have to hire a number of employees who would have to constantly work on maintaining it and upgrading it. When you opt for outsourcing this service, this is no longer your job.

Not only would you get a team of professionals who are experts in their job and have mastered the skill of ensuring that everything functions perfectly, but one of their tasks would also be to ensure that the latest version of the software and all the patches are available to you. As you are probably aware, these updates come quite frequently, and oftentimes they are of crucial importance meaning that software might not be able to work properly without them.

What are the disadvantages?

Now, we are going to introduce you to the downsides of Software as a Service. Even though there are only a few of these, still you should be aware of them and be able to understand how they can affect your business.

source:emnify.com

Lack of control

When it comes to outsourcing any service, the fact that they won’t have absolute control over it is what worries most people. If some problems occur it means that you won’t be able to do anything about it, but instead, you will be forced to wait for the provider to resolve it. Usually, this won’t take too much time, but any kind of issue that occurs will have a direct impact on your business.

Poor performance

source:lvivity.com

When compared to the same equipment that is installed in your company, this one would have significantly reduced performance rates. This is simply due to the fact that it is implemented remotely. In order to prevent this from happening you would have to make an investment in the top-notch internet connection since you will have to use the network to access the software.

Security issues

Many business owners believe that the main disadvantage of cloud computing is the fact that they have to share all the data with the provider. There is still a lot of controversy regarding the question of how safe the data is on these clouds. Naturally, you have to ensure that the provider is trustworthy and also have to inquire about the security measures they use to protect the system from hackers.

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