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Top 6 Advantages of SaaS Business Model

Top 6 Advantages of SaaS  Business Model

Software as a service (SaaS) leverages lucrative ROI for both users and the providers, giving them a huge flexibility and number of advantages. However, as a user you’ll also need to compromise on certain parameters such as privacy and data protection. But these cons were not enough to stop SaaS from becoming one of the hottest industry trends due its supreme benefits. So, in this article we will discuss some exceptional advantages of SaaS that can enhance your workflows while saving a fortune on other hand.

Before discussing the advantages of SaaS in detail, let us first understand the SaaS-business model briefly and some fascinating facts about SaaS.

What is Software as a Service business model?

So in a nutshell, SaaS business model is just like your Netflix account, where users just pay the subscription fees for a specific period of time to use the services or software. Updates of software, its legal license, maintenance and all other internal things are managed by providing company and users just have to agree on terms and conditions before subscribing.

This business-model is adopted by most of the industries and you can see in below graph a constant increase in usage of each domain. For sales and marketing geeks, SaaS model and its advantages seems to be the real game changer.

SaaS application usage graph by industry domain

Some reliable surveys (BMC & 99 Firms) have stated interesting figures about SaaS:-

  • Salesforce is the largest publicly traded company with 10 billion+ USD annual revenue and already reported about 3.7 billion USD in quarter 1 of 2020.

  • By 2020, SaaS is expected to bring 105 billion USD with around 41% of workloads on the public cloud.

  • Organizations having up to 50 employees use 25-50 SaaS apps while those having 250+ employees use 100+ SaaS apps.

  • 80% of businesses already use at least one SaaS application.


Advantages of SaaS applications

1. Cost

It's no secret that companies are adopting the SaaS model due to enormous cost benefits for both providers and users.

Developing their own custom software can cost businesses a fortune and burn their pockets deep. Especially small and medium sized businesses cannot afford to do so. Opting for SaaS can be the best solution in this case.

However, there is a lot of debate between custom software vs off the shelf but trends clearly suggest to invest in SaaS if you’re looking for cheaper solutions.

Providing companies can offer flexible costs for those who don’t want to make big investments. Like offering 1 month, 3 month, 6 month, and a year package or maybe they can restrict some features to create a relatively lower threshold.

2. Mobility

This is one of the greatest advantages of SaaS that helps especially remotely working teams which can be seen increasing tremendously due to Covid-19 impact.

Ideally, you’ll just need login credentials and a stable internet connection to access your software from any part of the world. No software data is stored in the hard drive of your computer.

3. Try & Use

From a user's perspective, this advantage of SaaS can be crucial for those who are not sure about their choice. Because almost all reputable providers offer at least a week of free trial and if you aren’t comfortable with it, you can just walk away without paying anything.

Think of this SaaS advantage similar to online shopping. You don’t like the product, just simply return it! And in this you don’t even have to pay in advance.

4. Quick Start

SaaS can be a great option for businesses who want a quick start. These software are already deployed on web-clouds and are ready to use. In most cases, there are no lengthy operations involved and just need a simple sign up process to get started.

However, it largely depends upon the complexity of the software and your requirements but yet cloud-based SaaS is way faster than any other alternative.

5. Scalability

This is a great advantage of SaaS for businesses having dynamic workflows and also for the growing start-ups. Whenever there is a need of changing the workflow and certain processes, that will be reflected back to the software you’re using. Rather than reaching out to your software development partner every time, you can just shift to a higher plan or a more convenient one if you’ve opted for SaaS.

And fortunately, these SaaS companies always offer flexibility to shift between the various plans. It gives users a sense of satisfaction that they are not restricted to change their process and workflow just because of the software they’re using.

6. Prompt Support and Strong Community

If you choose a reputable SaaS company like Salesforce, you can expect thorough guidance to operate the same. It’s really vital when non technical staff is using your software.

Moreover, solutions of general problems are already available on their official website and popular QA platforms like Quora. But if you’re unable to find the answer, you can directly shoot an email or call the helpline number.


So we’ve explained the top advantages of SaaS and how choosing the right SaaS can be game changer in your business. If you’re thinking of developing a successful cloud-based SaaS business model, here is the full guide that will help you to get an overview in six simple steps.

There are many successful and popular SaaS companies who generate ginormous revenue and you can study their business model to prevail in your journey.

If you’re looking to develop one, Citrusbug has exceptional experience in creating thriving SaaS applications from scratch. You can reach us to get a free consultation regarding your business-model.

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