What makes SaaS so appealing?

Unlike traditional software installations, where you must set up servers, install software, and configure everything yourself, SaaS allows you to access applications remotely via the web or an API. It's like renting the software — you pay for what you use, and the software is available to you for as long as you need it.

Here are five key benefits of using SaaS:

1. Faster Time to Value With SaaS, the application is already installed and configured, meaning you don’t have to spend time on lengthy setup processes. You can quickly provision a server in the cloud and start using the software in a matter of hours. This streamlined process eliminates the delays that often come with traditional deployments. According to Gartner, 70% of organizations are expected to migrate to SaaS by 2025, driven by its quicker deployment times and ease of use (Gartner, 2023).
2. Cost Efficiency SaaS is a cost-effective option because it usually operates in a shared or multi-tenant environment, which reduces hardware and software licensing costs. Additionally, small and medium-sized businesses can access powerful software solutions that would typically be out of reach due to expensive licensing fees. A Forrester study found that organizations save an average of 16% in IT spending by switching to SaaS, as they avoid the costs of maintaining on-premise infrastructure (Forrester, 2021). Further, according to another study by Forrester study, the customer achieved $10.2 million in cost-savings over three years and saw a 383% ROI. Maintenance costs are also minimized since the provider manages the infrastructure.
3. Scalability & Seamless Integration Most SaaS solutions are built on scalable cloud environments and come with easy integration options for other SaaS products. Unlike traditional models, you don’t have to invest in additional servers or software. You can scale up or down as needed, and the provider handles all the server capacity planning. A McKinsey report showed that 56% of companies say scalability is one of the top reasons for choosing SaaS (McKinsey, 2022).
4. Automatic Upgrades One of the major advantages of SaaS is that upgrades are handled by the provider, with new features and updates rolled out automatically. This eliminates the hassle of purchasing upgrade packages and dealing with installation, which is often required in traditional software models. According to TechRadar, over 65% of organizations prefer SaaS for its ease of access to regular updates and version improvements (TechRadar, 2023).
5. User-Friendly & Easy Proof-of-Concepts SaaS products are designed to be intuitive and come with built-in best practices and sample data, making them easy to use from the start. You can quickly test features or new releases through proof-of-concepts before committing. Additionally, running multiple instances and migrating between versions is seamless, making it easier to test and implement changes, even in large environments. A Statista report indicates that 62% of businesses that use SaaS cite its user-friendly interface as a significant factor in improving overall productivity (Statista, 2023).

References:

• Gartner (2023). "Cloud Adoption Forecast."
• Forrester (2021). "The Total Economic Impact? of SaaS."
• McKinsey (2022). "Why Companies Are Moving to SaaS."
• TechRadar (2023). "SaaS Trends and Benefits."
• Statista (2023). "SaaS Usage Statistics."