Understanding Software as a Service (SaaS)

May 8, 2020
Understanding Software as a Service

[vc_row][vc_column][vc_column_text]SaaS can be referred to as Software as a service. Here, the user doesn’t pay for the Software itself; instead, it can work as a rental service. The user can have the authorization to access it for a certain period and pay for using the Software.

In general, a SaaS service provider offers a wide range of services in different sectors like managed payroll processing in HR, etc. It’s like just getting your clothes cleaned and dried up without doing it by yourself.

Let’s take a tour of some of the significant benefits of using a SaaS:

1. Time-saving 

Standing out from the traditional model, in SaaS, the Software will be installed and configured already. The user will have the advantage of provisioning the server in the cloud and the application software ready for use just in few hours. This can reduce the time spent on installing and configuring, which can thereby lessen the issues that can be faced during software deployment.

2. Improved Scalability & Integration

SaaS solutions usually stay in cloud environments that are easily scalable and can have integration with many other SaaS offerings. When compared with the traditional model, users might not have to purchase another server or Software. They need to enable a new SaaS offering and, then the SaaS provider will own that in terms of the server capacity, which can be helpful and reliable to SaaS users.

3. User-friendly & perform proof of concepts

SaaS offerings can be easy to use as they consist of the best practices & samples inside them already. Users can also make proof of concepts, and the software functionality of a new release feature can be tested in prior. They can have different versions with more than an instance for a smooth migration. In the case of large environments, users can make use of SaaS offerings to test the Software before they actually purchase it. For example, for an effectively managed payroll processing, the application provides the best practices and samples to its users to efficiently manage payroll.

4. Cost-effective

When it comes to SaaS, it resides in a multitenant or shared environment where the hardware & software license costs are meager in comparison with the traditional models.

Another significant advantage is that the customer base will be improved as it also allows small and medium businesses (SMB’s) to use the Software that otherwise they would not prefer due to the expensive license cost.

Maintenance costs will reduce as well, as the SaaS provider has the environment, and it is split among all customers who’re using that solution.

5. Easy to manage processes & reduced complexity

Considering SaaS in HR, for instance, most businesses have more than just tax compliance to consider, which, when not followed, can land the company in hot water. It is needed to keep an eye on your compliance management always to make sure that you comply with the required laws & regulations. All the required data must be in one place to help mitigate risk if your organization is being audited, which reduces the complexity with the use of this application software.

6. New releases

SaaS providers can upgrade their solution, and it becomes available for their customers or users as well. Costs & effort associated with upgrades or new releases is less compared with the traditional model, which compels the user to purchase an upgrade package & install by paying for specialized services to get the upgraded environment.

 Key Takeaways

  • SaaS method can be the smartest choice for any company as it lets you focus on core business and relieves from the hassle of maintaining Software.
  • Besides, SaaS is based upon a consumption-based pay-as-you-go model that makes it cost-benefitted at all times.
  • As payroll is considered as one of the highest costs to the employers, it is required to have systems that will provide accurate information and payments in line with current legislation for a managed payroll processing in companies.


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