SaaS technology and business model: understand how it works

Did you know that many companies use the new SaaS business model for their operations? It allows for different types of payment to innovate in the market and automate processes, in addition to cross-referencing data to generate more information for decision-making.

These solutions also facilitate the management and organization of information, offering greater agility for the company’s demands. Do you want to better understand this technology and how you can charge a fair price from your customers and with a service focused on solutions? Then, follow this article and better understand how to  transform your business model and get ahead of the competition .

What is SaaS technology?

SaaS technology   stands for “ Software as a Service .” In other words, instead of purchasing conventional software and installing it in your company, you hire an online service that makes the  software available in the cloud . Its function is to provide access to services, support and software maintenance through online access.

A company that provides this service is responsible for the infrastructure needed for the software to function, such as servers, security, technical availability and frequent updates.

So, instead of paying for a license to have the software on the company’s computer (and worrying about purchasing updates), the company hires a SaaS service to worry only about the practical day-to-day issues. And the supplier is responsible for keeping the software running “at full steam”.

SaaS technology is hosted on a cloud server, which ensures greater agility in operations and  security for the company’s data  . Access is done online, using a login and password.

What is the difference between SaaS, IaaS, PaaS?

The difference is not just in the acronyms, the services are aimed at different user profiles, despite the application being the same and in all cases, they are cloud systems. Next, we will see the difference between them.

SaaS

SaaS is the acronym for the English word “ Software as a Service ”, which means “Software as a Service”.  SaaS is applied to practically all services available online, such as webmail and search engines.

Among the three applications, SaaS is the simplest model to use and the user does not need to have technical knowledge about technology, just know how to use the internet. This is because the user is not responsible for updates or bug fixes in the software.

The SaaS model is a standardized business model that offers users the possibility of accessing their files remotely. Due to its simplicity, it serves companies of all sizes and segments.

PaaS

PaaS stands for “ Platform as a Service ”. The PaaS system is a little more complex than SaaS and requires a little more technical knowledge from the user. In this business model, it is possible to have a complete development environment, in which it is possible to create, test, optimize, modify and manage the platform.

The interfaces of this model are very intuitive and allow the user to work without worrying about managing and configuring the infrastructure. The advantage of PaaS is that the service is very affordable, despite being a little more robust than SaaS.

IaaS

Among the three business models presented, IaaS is the most complex and requires advanced knowledge from users. It is aimed at companies that need more autonomy to manage and configure their servers.

The advantage of this type of service is its scalability, as in one month, the company can hire a number of servers and when demand is low, it can hire fewer.

Therefore, this model is recommended for online stores, as this type of business has a demand that varies greatly, especially during seasonal periods such as Christmas and Mother’s Day, for example.

Companies that are expanding but do not yet have the capital to invest in a robust infrastructure can benefit from SaaS, but they must have a highly qualified IT team.

Who is the SaaS business model recommended for?

The SaaS business model is recommended for companies of all sizes and segments. Companies that offer a free version of their products to their customers can benefit greatly from SaaS technology. This is because the features are limited and if the customer tests it and likes it, they will pay to use the full system.

SaaS is also ideal for companies that work with Inside Sales. This is because in this type of business, internal employees need to maintain contact with potential customers and record all the information collected to offer the consumer the solutions they need.

What are the benefits of using this technology?

SaaS offers many advantages to companies that use this service. Check it out:

Mobility and flexibility

A SaaS solution allows you to access your company’s ledger or tax information in another state or country. You can monitor your team’s work and check whether deliveries are on time, all online. You no longer need to be physically present at the company to check whether people are working normally.

This software model also allows for more frequent updates of its features and information. This allows the company to adapt more quickly to changes in legislation, reducing the risk of notifications and fines from the tax authorities.

Cost reduction

The traditional software model required large  financial investments  and constant concern about the next update that would be made available.

With SaaS, the company can save money, as it can choose to pay a monthly fee to the supplier — who is responsible for automatically making all updates available.

Security

Software as a service updates occur more frequently and are done quickly, so the team doesn’t have to stop work while the work is being done.

This way, everyone has access to the same version of the software, which ensures greater team efficiency. In addition, the company has greater security for its data, as it is sent to the cloud, and the update also reduces the chances of bugs in the tool.

Specialized technical support

The manager has greater contact with the service provider, as the relationship can be established online. In case of doubts, for example, all they need to do is talk to a technician to receive efficient support. Since it is an online solution, there is no need for a specialist to visit to resolve any problem; everything can be done remotely.

Organization of processes and information

This new  software model  facilitates the integration of a company’s information. Data from different sectors can be stored in the same environment, which facilitates the management and organization of processes.

Many activities can be automated, reducing errors caused by manual work. The manager can also have a broad view of the business, such as the number of defaulters, history of collection calls and the need for team training.

It is also possible  to generate reports  that help in making strategic decisions for business growth.

Productivity

By  automating bureaucratic tasks  , such as issuing invoices, invoicing, payments and cancellations, employees can focus on more specialized services. This means that the company gains in productivity and service quality, as people have more time to think and plan actions.

How do SaaS services enable new business models?

SaaS software is one of the  new technologies  that are dominating the market. The main focus of this service is not the sale of numerous tools, but the provision of an efficient and up-to-date solution.

For this reason, SaaS is part of the new business models on the market. Companies that use this type of service are concerned with delivering quality to the customer and constantly updating information and tools. They are also more focused on the work that needs to be done, regardless of time and place.

What do you mean? Software as a service can be accessed from anywhere with internet access, right? So, an employee who is on a business trip can carry out his/her bureaucratic work during breaks between meetings.

This is different from the traditional software model, which allows the tool to be installed on a specific number of computers (which are usually located at the company’s headquarters). This way,  the organization can focus on specialized customer service , the creation of processes and the automation of bureaucratic tasks.

Therefore, businesses that follow market trends and need to focus on customer service have already switched to this technology model. It allows for a more dynamic business structure, with agility and security for data stored in the cloud.

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