What Is SaaS Application? – Should You Use It?

Are you considering moving your business to SaaS?

Wondering what the business benefits of a SaaS model are?

Is SaaS really just another business acronym in the line that is completely meaningless to you?

If you nod in agreement to any of the above, you should read on as I explain what SaaS is, why companies are moving to the cloud and how your company can benefit from SaaS.

But first…

What is SaaS?

SaaS stands for, “Software as a Service”, a cloud service that offers a connection to and subscriptions to IT services that are based on a common infrastructure via the cloud for distribution over the Internet instead of the software being purchased, downloaded and installed locally.

In other words, the software you want to use is remotely delivered and administered and you can access it via your browser (and mobile device).

How important is the cloud?

I will say this, pretty darn important.

Your company will grow more than 19% according to a study by Vanson Bourne who interviewed over 460 companys who moved to the cloud.

Ten years ago, very few companies even thought of cloud technology.

In fact, as recently as 2008, only 12% of companies used cloud-based apps.

Today, the situation has completely changed and the question is no longer “if”, but “when”.

Important benefits with SaaS for your company

1. No big investment costs

With SaaS, you only pay for what you need and you avoid high start-up costs. You only pay a subscription fee per month or year to use CRM as a service.

(CRM stand for Customer relationship management (CRM) is a technology for managing all your company’s relationships and interactions with customers and potential customers).

This is one of the reasons why SaaS is usually preferred by medium-sized companies that are careful about how they invest their budget in new systems – even if it is considered business-critical.

Instead of a large initial investment with a server solution in place, SaaS can be managed as an operating cost (something most CFOs prefer).

2. A cost-saving alternative

One of the biggest benefits of SaaS-CRM is the ability to save money!

In fact, “lower total costs” are the second biggest driver when it comes to implementing SaaS in companies.

When you compare the cost of a SaaS CRM solution with the cost of purchasing the software, the SaaS option can still seem expensive at first glance.

But when you take into account the amounts you have to spend on buying the necessary hardware and hiring and leading the staff who will maintain the system, it often turns out that the SaaS solution is actually the cheaper option.

In other words, choosing SaaS means that you can completely avoid the costs of extra hardware and operational staff.

3. Seamless access

With the SaaS model, you get access to your CRM database regardless of location, time and which device you use.

With an operating time of 99%, all you need is an internet connection and a web browser. With cloud hosting and internet access, SaaS-CRM is a perfect solution, especially for outdoor salespeople and other people who spend most of their working day outside the office.

4. Expand and integrate as you want to

A few years ago, there was some concern about the introduction of new applications: perhaps the new application would not harmonize with your way of working, especially not with the programs you were used to using?

As technology evolves, users can integrate their SaaS CRM applications with already available software on the market and expand their CRM solutions in the same way as they would expand a local solution.

This means that customers can continue to use the programs they are used to, such as ERP systems or email clients, (such as Gmail or Outlook) because they can usually be integrated with the SaaS solution

5. No IT-Problems

A hassle-free IT environment is definitely one of SaaS-CRM’s strongest selling points.

Subscription-based pricing is almost completely exempt from system maintenance fees such as backup, updating and security.

The user does not have to buy, install and update either hardware or a local server that costs money and requires maintenance. This in turn means that you do not need to hire specific IT staff.

Here is another reason why your business will grow faster:

Through the transition to the cloud, IT costs will fall by 15% and costs for IT maintenance by 16.7%.

It is a SaaS provider that is responsible for the operation of the SaaS-CRM solution, which means that all upgrades, installations, maintenance and new users are connected to the system without the customer having to lift a finger.

In addition, it is the SaaS provider’s responsibility to fulfill its promises and ensure that the IT hardware works as intended.

6. High security

The SaaS provider’s business depends on data security, so it’s easy to see that software security is paramount.

Therefore, SaaS providers have their servers spread over several different geographical locations with automatic backup, which guarantees a higher level of security than what your own company could achieve.

Usally in 95% of cases it is human error that create security flaws that have occurred in cloud contexts.

7. Scaleability

Finally, the SaaS CRM model can be quickly scaled up, which means that if your organization decides to increase the number of CRM users, it can happen on the same day.

Gone is the need for tenacious inquiries, testing, replacement of IT architecture, installation of additional software and a lot of waiting time.

Just change the subscription and vips you can give more users access to your SaaS solution.

And if you need more storage space or additional services, the process is the same: simple and almost immediate commissioning.

It is precisely the speed that is the main driving factor that makes companies switch to the SaaS model.

Companies that have already moved to the cloud are already experiencing how fast it is possible to scale up.

In fact, 20% of companies have seen an average improvement in market lead times – and that they have left competitors who use solutions via their own servers far behind.

In the second “scale”, however, is that a longer process may be required when scaling down. This is because SaaS suppliers offer a separate version of the product to support customers, which means that a move away from this has the opposite effect.


There are several benefits to using SaaS.

Companies around the world are moving to the cloud where they can easily rent services and enjoy a hassle-free existence.

As for SaaS-CRM, the main advantages are the following:

You avoid IT-related problems, which means that the user does not have to buy, install or maintain any hardware.

No license fees in advance or extra fees for maintenance and upgrades.

Easy customization as SaaS offers a flexible and scalable IT solution that is compatible with a variety of business tools.




This article has been reviewed by our editorial board and has been approved for publication in accordance with our editorial policies.

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