What is SaaS and Why Is It Important?

If you’ve been using Dropbox, Zoom, or Google Workspace, — which I’m certain you have — then you’re already a SaaS customer.

So what’s SaaS, you ask? It’s basically a software distribution model where third parties host and manage their products so their customers can access them using browsers and apps.

Unlike traditional software where users needed to downloaded and install stuff on their computers, SaaS provides interfaces that users can interact with, while their data is stored on the cloud.

But Why Is Everybody Talking About It Now?


From a user’s perspective, you can probably tell how convenient SaaS really is. They don’t need to install, maintain, or download updates with each new release.

But you… the business owner, you have a lot more to gain from SaaS. Let’s discuss some reasons why people are eyeing this business model today.

1. Yields More Profits

SaaS models have the potential to generate maximum profits compared to on-premises systems as customers buy from the company more than once in a lifetime.

The models also reduce the costs of maintenance as you don’t need to hire many workers; a company that needed 2000 members to run can now operate with just 20-100 people.

2. Faster and Cheaper To Launch

SaaS models allow you to reduce time wasted in learning complex management, IT, or procuring skills to manage on-premises software. You don’t even need extra hardware for your business.

It’s also possible to deploy your business in multiple states at no extra cost. This will increase your customers, and you don’t need to set up offices in the respective counties.

In addition, it’s easy to maximize service performance as your customers does not rely on your internet speeds or power supply. This makes your business more stable and easy to access.

3. Enhances Quality Service

Lastly, it’s easy to design systems tailored to meet your customers’ needs as they can get system updates in real-time and give immediate feedback.

You can also give users the opportunity to test the latest developments and collect surveys to get suggestions on what you need to improve.

Since user activity on your website is stored on one server, it’s easier to monitor user metric and behavior. This makes it possible to provide personalized services using artificial intelligence.


Cloud-based operations make SaaS models more desirable since running a business is faster, more organized, and more profitable. If you’re currently building on-premises software, it might also be smart to build a SaaS version and see how that’ll fair. Compare the two models and if both are working for you, try both.

To get articles, blog posts, and eBooks tailored for your audience, contact me at [email protected] for more information.


An editor at Blogzine
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Louis Ferguson is a senior editor for the blogzine and also reports on breaking news based in London. He has written about government, criminal justice, and the role of money in politics since 2015.

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