What is SaaS?

What is SaaS?

The concept of delivering software as a service (SaaS) became one of the most lucrative and effective business models for software developers. Moreover, SaaS products also have multiple advantages for users who can just opt-in for monthly or annual subscriptions to use the services. With the popularity of SaaS, it is important to know exactly what it is, its pros and cons, and how it influences the eCommerce industry.

SaaS explained

The primary idea behind SaaS is the notion that software products are delivered on a subscription basis and provide all the necessary resources by the providers. In most cases, SaaS products also do not require technical proficiency to install and run it. For instance, a SaaS platform can be accessed from the browser and provide all the needed tools and services from one admin panel. Also, SaaS implies that the providers are responsible for the technical support and evolution of the quality and variety of the provided services. 

For users, SaaS is the most convenient way to use certain products without the need for complex set up and technical support. SaaS also means that it can be accessed by multiple users from different locations and devices to cooperate and share the same database. Subsequently, by choosing this option, customers expect that they can receive the services through instant delivery from the providers’ servers, using it for collaborative work with other users.

Pros and Cons of SaaS

Considering that SaaS products have become so widely used in different industries, more users have become interested in utilizing this type of software. In this regard, let us review the pros and cons of using SaaS.

Pros

  • Easy set up and no installation process. Using SaaS implies signing up and starting to use the software.
  • It can be accessed from anywhere and from any device. All you need is a stable connection to the internet and a device that is capable of running the software. 
  • Monthly and annual subscription in most cases. You can cancel the subscription anytime if the services do not fit your needs. 
  • Software providers update the functionality and security of software. The technical support team also aims to resolve the issues that users have with using the software. 
  • Cloud synchronization and collaboration options. Multiple users can access, customize, and cooperate on data in SaaS products. Additionally, the subscription model can be less expensive than buying package software for everyone.

Cons

Although SaaS has fewer cons, they can be a deal-breaker for some users. Namely, the most common disadvantages of SaaS are the following:

  • Fewer customization options. A user is tied to the features and services that the provider has, and there is no way to influence or customize the functionality to meet specific needs. 
  • Connectivity is required. Users are reliant on the servers of the providers. All users would not be able to access the services if something goes wrong with the host’s servers.
  • Data security concern. With uploading your data to the SaaS platforms, there is a risk that a security breach on the provider’s end could lead to the leaks of users’ data. Even though the SaaS providers ensure that their systems are well protected, data breach risks remain to be a possible issue.

SaaS in eCommerce

In the eCommerce industry, the use of SaaS platforms has become one of the most common practices. For merchants who want to open an online store and do not worry about the technical aspects of launching and supporting a website, choosing a suitable SaaS platform is the best option. The platforms like Shopify or BigCommerce provide all the necessary tools for designing a store, managing orders, and analytics to make the user experience as smooth as possible. 

Besides, SaaS eCommerce solutions have different scalability options and can be effectively used not only by small businesses but also by large-market companies. The primary benefit of using SaaS eCommerce platforms is that developers provide all the needed infrastructure and ensure that all stakeholders receive the best experience; merchants can easily build and run stores from the software’s dashboard, while shoppers get the best online shopping provided by the platform’s technologies.

Bottom line

The SaaS model of delivering software solutions is a convenient way for businesses to profit from the constant flow of income from subscription payments and constantly invest in the evolution of a product. From the user perspective, choosing SaaS options provides a range of benefits like instant access to the services and no need for setting up and maintaining this software. Especially in the eCommerce industry, SaaS platforms have become one of the main options for merchants who want to open an online store without getting into the technical aspects of building a website.

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