What is SaaS and Why Might Your Business Need It?

Modern SaaS software solutions allow companies to manage their business from anywhere without the need for technical resources and with a low initial cost. Startups can start working with customers, increase their customer base, and make money quickly by investing just a small fraction in the monthly license fee.

It sounds good, but SaaS solutions have significant limitations. Why does this happen, and for which business tasks is SaaS best suited? Let’s take a closer look.

What is a SaaS service?

Software as a Service is a popular business model for delivering software, web applications, or mobile apps, literally “digital software as a service”. This is a new stage in the development of technology. Once, we used to buy software on disks and install it on our PCs; we later started downloading the installation file from the Internet. This is how the development company distributes copies of its program, manually administered on different devices. Running the program requires only opening a link in a browser, as downloading or installing ready-made SaaS solutions is unnecessary.

So, what is SaaS in simple terms? A program is created by a service provider, hosted in the cloud, and made available to its users via the Internet. An example is Shopify, a platform for creating and managing online stores without installing software.

The Salesforce company was the original creator of cloud software in 1999, and it is still a popular CRM today. Companies utilized this product directly through a browser without having to install it on a computer, which was both innovative and flexible. Google and Microsoft are the most well-known SaaS vendors whose products we encounter every day, as they both create applications and offer cloud services for them.

The SaaS concept typically involves completing a form with your company’s name, contact information and paying for the subscription. The generation of a unique URL makes access to a software solution tailored to your needs possible. Many types of businesses find this process to be quick and convenient.

In today's world, SaaS platforms are becoming increasingly popular in various fields.

The seamless sync of SaaS applications is due to a professional development team's constant maintenance and improvement of the application code behind the scenes. In the world of online business, you will also come across services such as:

• HubSpot and Zoho for customer relationship management (CRM);
• GitHub and GitLab for software development;
• Jira and Trello for project management;
• Canva for graphic design;
• Wix and Squarespace for website creation, and etc.

The trend is clear: the faster the Internet becomes, the more solutions work in the cloud without loading on the user’s device.

Why are cloud-based software solutions so attractive?

SaaS is a service that allows for easy initialization and de-initialization from a central location, with no need for special hardware or technical specifications. With minimal technical effort, this ensures rapid service deployment and ease of use. The program’s code is the supplier’s property, and they must provide timely updates and support, with customers paying a monthly subscription fee. Free-of-charge services are frequently offered, but premium customers are given valuable features.

Cost savings

A SaaS platform can be cost-effective for companies because it doesn’t require hardware installation to run the program. This eliminates the need to pay for a server and its maintenance, which includes backups and system support costs. You don’t need an IT department — just a few contractors who will improve the product through iterations, i.e., gradually and within specific limits.

Global accessibility

SaaS companies can instantly provide services and access them worldwide through the Internet. The service provider manages the entire infrastructure centrally, eliminating the need for local servers or data centers in different regions. Employees and clients can access programs through a browser from any location, regardless of geography, making remote working easy.

Flexibility of integrations

For existing business processes, SaaS solutions must be able to integrate with other services and tools. It's essential to study these limitations before deciding on a platform. A customized SaaS solution designed for a specific company has no limitations.

Automatic updates

With SaaS, users are spared the need for manual updates or administration to access new features and patches. This not only reduces downtime but also ensures uninterrupted operation, free from errors linked to older versions.

A multi-client architecture operates more efficiently by updating everyone at once based on feedback from multiple users. Teams can collaborate more efficiently because everyone uses the same product version and has the same software environment.

What are the disadvantages of SaaS?

SaaS has many benefits, but there are also some drawbacks and vulnerabilities that businesses should take into account.

Limited customization options

SaaS platforms have essential functions and offer little customization for customers. This is a drawback, as finding the perfect solution for specific business processes can be challenging. The agreements usually specify the service’s limitations, which include restrictions on users, resources, and services like integration. Exceeding predefined limits, such as the number of clients or available storage space, can increase the monthly fee.

Impact on download speed

SaaS services' inherent redundancy can often hinder their performance. Such platforms are created as ‘all-in-one’ solutions, stuffed with a wide range of features to maximize coverage. This can lead to an overload of features that may not be relevant to every user. Customers cannot remove unnecessary functions or optimize performance according to their specific needs because they cannot access the underlying code or queries.

SEO control: comprehensive or limited?

SaaS providers typically offer only basic SEO features, like editing meta tags, customizing URLs and page titles, and limited service integrations. More advanced SEO customizations require higher-tier subscriptions or aren’t available from the start.

Scalability concerns

Cloud SaaS services are limited in delivering features tailored to specific business goals. Customers rely on the provider's ability and willingness to offer additional resources, often at a much higher cost. This limitation stems from the multi-tenancy model, where a single infrastructure serves multiple customers. While this approach reduces costs and simplifies management for the provider, it imposes significant restrictions on customization. This is the primary distinction between cloud services and custom solutions, which are explicitly designed to meet an individual company's needs.

Technical support challenges

It is important to note that the technical support of a SaaS service may need to be more efficient and take a long time to respond to requests, while the technical support of your customization server is only available to you.

Security considerations

Cybercriminals scrutinize the technical component of an individual company's software solution less than a well-known service because it is difficult. Of course, developing a personalized solution takes time and resources. Still, in the absence of monthly payments, it proves to be more profitable in the long run, also in terms of security.

Today, SaaS addresses data leakage through a zero-trust approach. The security system’s default setting is ‘no one can be trusted’, and it constantly checks identities and restricts access. Using cloud-based software services requires organizations to be proactive in this regard, as cybercriminals are becoming more sophisticated.

According to MIT Technology Review, artificial intelligence, used by 76% of SaaS service enterprises, has also contributed to this problem. GenAI’s training data can contain confidential information, resulting in unintentional data leaks.

SaaS companies sometimes report encounters with significant security flaws and hackers’ access to personal records and confidential data. All this reduces trust in services regarding essential business functions. That’s why, for various reasons, companies still have security issues today. A more thorough approach to access levels and frequent ecosystem inventories are necessary, including checking everything used in the cloud. Large companies must conduct in-depth behavioral analytics to detect anomalies in cases. Organizations can reduce the risk of unauthorized access by using robust encryption methods.

Customized development of SaaS solutions

Software developed for a single company and installed on a server with full access rights is a different option from a SaaS service. With custom development, data can be fully controlled, and design and functionality can be completely customized. A custom product can quickly scale and adapt to specific business needs without technical limitations.

Custom development enables you to connect any API integrations, optimize speed, improve server infrastructure, and ensure that your data is stored confidentially in your database and is untraceable to cybercriminals.

In the digital era, companies choose for adaptable services to their business. Standard SaaS platforms are a great option if you require a quick launch, ready-made features, and minimal technical effort. Custom development is necessary for an online business to develop personal relationships with its customers through its well-honed product.

We hope you found this information on SaaS insightful. We offer the development of both unique web-based solutions and SaaS services so you can optimize your processes and integrate technologies that fit your business needs. Our expertise allows you to focus on your strategic objectives while we handle the technical aspects. Contact us today to discuss how we can elevate your business to new heights!