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Is SaaS Really Effective?

IT Biz Today Staff

SaaS stands for Software as a Service. It’s a cloud-based service providing platform that’s gained a lot of attention with the developments in the software industry. If you’re new to cloud computing and don’t know how SaaS works or why it’s effective, this post is for you.

Software as a Service or SaaS refers to a software delivery and subscription model where users utilize software and its features based on monthly subscription charges. A SaaS platform centrally hosts and licenses it to other users.

Some of the top examples of SaaS include DropBox, Canva, and Google Apps. Let’s go through the advantages and disadvantages of SaaS to get a better idea of its effectiveness.

Benefits of Software as a Service

SaaS is among the most popular business distribution models that have been active since the 90s. Here are some of the top benefits of relying on SaaS business distribution models:

1. Modern Compatibility

Conventional software installation could require lengthy update hours and cost a lot. Besides, that software use model involved updating each workforce member individually. If members weren’t available on the day of updates or so, they would struggle with version discrepancies. But with SaaS, all members will have the same updated software version.

2. Low Costs

You can save a noticeable amount of money through SaaS for several reasons. Using the Software as a Service model, you don’t have to pay for every update or testing/feedback process.

The publishers are responsible for it. Furthermore, the companies don’t have to overspend on software purchases and installation. Plus, the maintenance and upgrade costs are on the publishers as well.

3. Accessibility & Scalability

Consider the SaaS as a “pay-as-you-go” model that offers extensive flexibility for companies. Also, it’s easy for businesses to switch to different usage plans to gain more features or perks. You can switch usage plans without prior notice. Moreover, there’re no geographical constraints, and companies can subscribe to software use anywhere in the world.

Drawbacks of Software as a Service

Despite being a largely admired and utilized business distribution model, SaaS has its drawbacks apart from the benefits. Here are some of the flaws you should know before choosing a SaaS platform:

  • Security Issues: The data security responsibilities of the SaaS model don’t fall on the shoulders of publishers. Instead, the business has to address appropriate security concerns and ensure protocol placement in the model.
  • Contractual Obligations: In SaaS offerings, policy compliance and contractual obligations are two significant issues. Compliance isn’t easy because contracts are complicated to understand. Companies end up over-stepping the regulation and have to pay huge penalties as a result.
  • Loss of Control: Before, businesses had control over the software applications and associated digital components of the model. However, now publishers handle when to update the software and gauge clients’ usage.


SaaS is still an untapped market with a lot of potential. It can significantly save time and money in a business while reducing software maintenance and compatibility issues. But it brings a few drawbacks as well. For instance, you must research and find the right SaaS product for your company in the broad market, which is not easy.


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