Daria Lymanska
Too many requests! You have made too many requests!! No more requests!!!
– How many times do you have to hear that before you get really angry?Amazon Chime API’s request throttling tested our patience like this. But all we ever wanted was to make a simple text chat app work! In this article, you’ll find out why Chime was so unkind to us, what we did to turn things around, and how you too can follow the path we forged.
What is a SaaS product?
SaaS (Software as a service) is a software distribution model in which a cloud provider hosts applications and makes them available to end users over the internet. Therefore, SaaS applications are not set up and maintained by companies. A monthly subscription fee gives users access to the ready-to-use software. To make an analogy, SaaS using process is like renting a vehicle, for which the lessor pays the price and uses it on demand. Nowadays, SaaS presents not as a service but as a necessary element at the center of the functioning of every second business.
Here are some statistics referring to SaaS software:
- Globally, SaaS revenues are expected to hit $116.4 billion by 2025, with a compound annual growth rate of 17.5%.
- Cloud storage holds a 35% share of the SaaS market. Business management software (22%) follows (26%) and collaboration software (26%), respectively.
- 94% of SMEs use at least one SaaS product. Small and medium-sized enterprises (SMEs) are the largest consumers of SaaS products.
Top Industries
The most active B2C and B2B SaaS companies are those engaged in sales or providing certain services in their niche. Healthcare, financial services, manufacturing, and retail are among the industries with the highest number of SaaS deployments.
Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), and Human Resources software (HR) are projected to be the most profitable SaaS industries in 2023.
Top Players
To get a clearer idea of what a SaaS product is, here is a list of the biggest SaaS companies known around the world:
- Microsoft Corporation;
- Adobe Inc.;
- Figma;
- HubSpot;
- Trello;
- Zoom;
- Slack.
Suppose you have experience using one of the above products. In that case, you can imagine how it works, why it is convenient, and how important it is to implement such SaaS platforms in your business.
Our company also deals with similar SaaS development services. We implemented the latest technology to build innovative financial CRM system, task management tool, and booking beauty appointment platform, according to SaaS approach.
Benefits of using SaaS products
So, what are the benefits of this system for you? If you clearly understand what function SaaS products perform and your business purpose, you can formulate precise requirements for the end result of using this service. This section will list the main things that SaaS providers can offer for B2B and B2C businesses.
- You pay only for the resources and functionality that the company actually uses.
There is no need to pay for the full range of services that a SaaS provider offers you. You're free to choose the necessary and critical features for your business and pay only for them.
- Economic benefit.
This point can be viewed from two angles. First, you know exactly how much you'll have to pay for the subscription period, and you won't have surprises with the increased cost of the resources you've already paid. Second, you won't risk your investment in such a subscription. If your business needs a more powerful or extensive platform to deploy your capacity. You'll end your subscription to one product and switch to another without losing money.
- Accessibility to your team from anywhere.
Any device your employees use - PC, laptop, mobile phone, tablet - can use the SaaS product.
- Shared use of the software by the entire team.
There is no need to buy a subscription for each user within the same company; the only exception may be the limit of connected users.
- Centralized software updates.
There is also no need to worry about updating the paid platform manually; the providers will do everything for the customer.
Business prospects with SaaS products
Enterprises incorporating SaaS products into their business concept are uniquely positioned to benefit from this growing trend. Here are some key business prospects with SaaS products, supported by statistics and numbers:
- Cost savings: SaaS service reduces businesses' need to invest in expensive hardware and software, which leads to cost savings. As a result, companies can save up to 20-30% of their IT costs.
- Scalability: According to 68% of companies, scalability is one of the main benefits of using SaaS. Therefore, a company can quickly increase or decrease its use of software as needed.
- Security: SaaS products offer enterprises advanced security features to reduce the risk of data breaches, including encryption and multifactor authentication. 94% of enterprises report a noticeable increase in security after implementing SaaS.
- Competitive Advantage: 74% of companies claim SaaS gives them an advantage through the quick and cost-effective deployment of innovative software.
Summary
As you have already understood, SaaS products are not only an opportunity to effectively manage business processes and business as a whole but also a practical necessity, without which it will be easy to optimize work processes and implement large-scale projects without a platform for necessary control.
By understanding what working principles SaaS is based on, you can maximize the potential of SaaS in your business and achieve greater success in 2023 and beyond.
