Technology has brought a paradigm shift in how businesses operate and altered their outlook on conducting business, connecting with their customers beyond borders, and achieving success within the complex and saturated corporate sphere. In their consistent race for growing customer reach, increasing outputs and efficiency, and staying ahead of their competitors, companies must implement innovative solutions that can redefine the concept of business processes forever. That’s where SaaS applications come into the spotlight as groundbreaking all-out solutions that address unique business needs. 

Software as a service (SaaS) refers to cloud-based software and tools that provide enterprises with easy remote access to business information systems, data, and sensitive information over the Internet. These tools are free from enterprise-wide complex installations and maintenance and offer a more user-friendly approach for users to access solutions through their web browsers. 

But the question remains, why have SaaS solutions captured the attention of forward-thinking organizations worldwide? The answer lies in their ability to offer ease of access, cost-effectiveness, and scalability. That’s why global spending on SaaS applications has hit the roof over the years, reaching an astounding $900 billion by 2030. To find out the answers, let’s delve into the benefits of implementing SaaS solutions for businesses and their impact on overall business operations. 

Businesses Can Adhere to the Ever-Changing Industry Standards and Regulations

SaaS applications make it easier for businesses to comply with industry-specific standards. For example, dedicated cloud-based systems like EZLease help businesses comply with ever-changing accounting standards like ASC 842 and IFRS 16. ASC 842 is a novel and complex accounting standard that requires accurate lease management and representation of leases in financial reports. Cloud-based ASC 842 lease accounting software strictly adheres to these accounting standards by making accurate lease calculations, generating accurate financial reports, and categorizing multiple leases accurately to prevent errors in financial reporting. The cloud-based approach allows businesses to avert data loss or inconsistencies, which results in accurate and updated financial data that complies with ASC 842 standards. 

In addition to lease accounting standards, SaaS applications exercise the latest data encryption and security techniques to comply with security standards like PCI DSS and HIPAA. They ensure businesses maintain customer confidentiality and secure all online transactions with customers and suppliers. 

Pay-As-You-Go Models Help Businesses Break Free from Heavy Upfront Costs

Implementing conventional desktop business applications require businesses to make significant upfront investments in building IT infrastructure, purchasing software licenses, and employing staff that oversees application and network maintenance. However, SaaS applications empower businesses to bypass these traditional cost structures and implement holistic business information systems without setting up a dedicated network, workstations, and expensive servers. 

Many SaaS service providers offer a pay-as-you-go (PAYG) subscription model, which allows businesses to pay for SaaS applications based on their actual use and consumption. It helps businesses spend strategically only for the services they need and save substantial operating costs in the long run, resulting in increased financial efficiency and a competitive edge in the market. PAYG is more suitable for small to medium-sized firms, which often face limited resources and budgets. Businesses can use their capital for diversification and reinvestment rather than spending resources on high upfront investments for local IT setup.

Cloud-Based Web Applications Allow Easy Scalability

A business that works on a traditional client-server network with local business applications needs explicit planning to cope with the challenges of business expansion. They may need additional hardware, space, and workforce to accommodate growing users, making business expansion a formidable task. 

On the contrary, SaaS systems are often built to be extremely adaptable and scalable, making it easier for businesses to expand or reduce their users according to their needs. SaaS systems enable businesses to make new user addition easily, modify existing features or software usage, and create customized solutions to meet their needs, which translates into increased flexibility and scalability. Since the service provider manages the backend and infrastructure in a remote location, you do not need to consider adding more users, modifying modules, or adding new features as needed.

Preserve Confidentiality and Data Integrity with Improved Security 

Data and application security is a growing concern for businesses worldwide. Small to medium businesses are especially vulnerable to cyberattacks and insider threats, facing over 46% of the total cyber attacks each year. With such overwhelming figures, businesses must invest a lot in protecting their sensitive data and application from potential breaches, unauthorized access, malware, data thefts, and fraudulent activities. 

Fortunately, SaaS solutions provide all-out data and application security, allowing businesses to minimize investments in in-house software, data, and network security. SaaS service providers often have a highly secure and robust cloud infrastructure with the latest data encryption techniques and strict security protocols. It means businesses don’t need to spend exclusively installing firewalls, intrusion detection systems, and physical security to protect data from unauthorized access, breaches, or fabrication. 

Above all, SaaS applications allow businesses to quickly recover from any security lapse or unfortunate event that results in data loss. SaaS providers perform regular data backups so businesses can operate smoothly without service disruption, recover quickly, and restore their information during a data breach. Besides, SaaS applications are designed to comply with data-encryption standards, which helps businesses prevent penalties and reputational damage. 

Easy Application Maintenance and Upgrades

Conventional business information systems require manual updates, regular upkeep, and costly system upgrades such as installing new database and application servers or investing in additional storage devices or expensive hardware. On the other hand, Saas applications on cloud platforms make it easier for businesses to access the latest updates and innovative software features without substantial costs. 

SaaS application service providers always introduce new and innovative software features that redefine or improve core business functions and enhance user experience. This way, businesses can have instant access to software upgrades and the latest features as soon as the SaaS service provider publishes these features. It helps businesses increase their overall efficiency and provide their employees, customers, vendors, and other stakeholders with the most recent business information, enhanced usability, and increased security. 

Final Thoughts

Software as a Service (SaaS) applications have made their way into the corporate ecosystems, and they’re here to stay. The benefits of SaaS applications are far-reaching, revolutionizing how business access, deploy and utilize software solutions. In the future, SaaS will continue to expand its usability beyond traditional applications and introduce industry-specific solutions with AI-driven capabilities and more customization options to cater to specific business needs.