SaaS Startups, Saas Unicorns, SaaS giants.
The members of the software industry have been hearing these words for quite some time. So what’s SaaS? What are the benefits?
Gone are those days when you need to download a software package, get it installed, and then play through it. Software as a Service (or SaaS) is a new age model where Software Products are hosted on the cloud, and delivered to the potential users via the internet. SaaS has revolutionized the software industry, creating a benchmark of its own.
SaaS applications have won the hearts of a million companies across the globe. Most of the companies today prefer a SaaS model to get their work done. Prospects love the concept of accessing a software that is hosted on the cloud, to run their business and simplify their lives.
Imagine a Chief Marketing Officer in Silicon Valley getting the privilege of evaluating a marketing automation tool hosted somewhere in South Asia? Doesn’t it open endless possibilities?
Talking about possibilities, here comes the next biggest question — who are the users of SaaS? Corporates or End customers?
Well, the answer is both. SaaS has two offerings.
B2B SaaS and B2C SaaS
B2B Saas companies build software products that are useful for other businesses to run their show. For example, Salesforce, Atlassian, Zendesk, Slack, etc. The applications developed by these companies helps other businesses maintain and automate their workflow easily.
Whereas, B2C companies deliver software products directly to consumers. Dropbox and Evernote are excellent examples of a B2C product.
Both B2B and B2C businesses are evaluated on the same SaaS metrics but, they have differences in their internal operations. A strategy that works well for a B2B model might not work for a B2C model and vice versa.
To sum up, SaaS has made the lives of people more comfortable. Mobile compatibility and collaborative nature of the applications enable the user to work on the go. SaaS products come with a lot of advantages over traditional software. Let’s look at some.
Advantages of SaaS
- Nil Infrastructure.
- Subscription-based pricing across plans.
- Instant access to apps from anywhere, anytime.
- Free evaluation in one of the paid plans.
- Multi-device compatibility.
- Zero Maintenance.
- Seamless upgrades and downgrades.
Now that we’ve got an overall view of what SaaS is, let’s think over a few questions (if you have a question, do let me know in the comments).
How to market a SaaS product?
What are the channels to market a SaaS product?
What are the metrics to be tracked?
How to grow a SaaS business?
Stay tuned for the answers.