The business-model SaaS

The popularity of SaaS models is growing every day. They are software as a service. The essence of the work lies in the fact that the provider hosts the application, making it available to subscribers on the Internet. Companies that sell software through a centralized cloud can be considered SaaS. You can find even more interesting information here:

Features and benefits

The choice in favor of this model is accompanied by a number of advantages:

  • affordable cost. A SaaS subscription does not include licensing fees, so the upfront investment is small. The form is in the cloud, so you don’t have to spend money on equipment installation and maintenance. Thanks to these advantages, the acquisition is beneficial for the development of projects;
  • easy implementation. The model is not only installed but also configured in the cloud. Therefore, worries about the complexities of setting up the infrastructure disappear by themselves. In most cases, you just need to register and download web browser extensions or applications to your computer. In addition, SaaS is fairly easy to update outside of the implementation phase. Vendors make things easier by regulating updates and software;
  • minimum obligations. Annual contracts are the most profitable. But at the same time, the subscription model is quite flexible. The possibility of monthly payments is the most convenient option. If necessary, you can refuse the product;
  • integration with your data structure. This is a significant plus. Additional software contributes to highly effective business promotion.


Like any other product, SaaS has its drawbacks:

  • difficulties when changing providers. If there is a desire or need to change the provider, the process of transferring personal data may be accompanied by difficulties. A similar situation can occur when changing the tariff plan. Therefore, it is worth discussing the issue of receiving data with the supplier in advance;
  • storage of personal data outside the office. Depending on the level of confidentiality of your data, storage by the service is at risk. There is the potential for regulatory compliance issues. Due to the fact that some applications have not yet developed a SaaS version, the model has limited capabilities. It is recommended to inquire about the availability of all the features you need before purchasing;
  • dependence on infrastructure and software. If they fail, you automatically follow them. But almost all suppliers guarantee reliability. Weigh the risks and analyze your company’s ability to cope in the event of a system outage;
  • security. The security issue depends a lot on your vendor. Therefore, before cooperating, you must study it carefully. The risks of employees being able to use collateral through insecure external connections are mitigated by requiring two-factor authentication to be enabled. This can protect you from information theft by hackers..

The SaaS business model is not designed for all businesses. But if you have high-quality software, a customer base and a special payment processing system, then choosing this product is a rational decision. Visit the diceus website and read about new products.

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