What is ‘Software as a Service’?

The Software as a Service (SaaS) is a cloud-based service that is accessed from an application or through an internet browser. Traditional software applications are sold with an up-front cost and come with a license that may need to be renewed after a certain duration. SaaS providers charge users on a subscription-based format such as a monthly or annual fee.

The initial setup cost for SaaS is generally lower than traditional enterprise software applications. Some examples of SaaS are BigCommerce, Google Apps, Salesforce, Dropbox, ZenDesk, DocuSign, Slack, and Hubspot.

In case of any doubts before starting SaaS related business, visit a SaaS Consulting Firm. With their knowledge and expertise, they can provide sound advice specifically tailored for your business.

What are the Main Advantages of Using SaaS?

There are numerous advantages of using SaaS applications, a few of them are listed below.


SaaS applications have the ability to run on an internet browser regardless of which operating system is used (Windows 10, Mac OS, Linux, etc.) and can also be accessed from mobile browsers on Android and iOS. This makes SaaS applications incredibly versatile as they can be accessed in a number of different situations.

Updates and Patches

The vendor can update their software without causing an effect on the business operations for its end users as SaaS applications are cloud-based. If an error occurs, the vendor can centrally patch the flaw and roll out changes to all its users simultaneously. 


There is no initial hardware investment required, a good internet connection is all that is needed. The main selling point is that SaaS can easily adapt to the user’s requirements. Let’s say if a user needs to add or remove people on the services provided. They can do so and their billing plan will be adjusted accordingly.

Saving and Storage

Storing large amounts of data can bring about the need to maintain reliable data backups such as an online cloud storage platform which can be expensive or, through physically transferring data onto external harddisks.

When using SaaS applications, the data is routinely saved in the cloud by default which considerably reduces the aspect of redundancy. Also, end-users gain the ability to switch between devices and pick up where they left off effortlessly.

Data and Analytics

Businesses that use SaaS applications have access to various analytical tools and data reports. These applications run on a centralized platform, allowing workflows to be streamlined. Valuable insights into the business operations can be scrutinized from the data to increase the overall efficiency.

What are the 3 Stages of Businesses using SaaS?

For every business that uses SaaS, there are three main stages they will experience, which are as follows. 

Stage 1: Startup

The business would have just launched and will have everything up and running, from programming to customer service. As the business is relatively new, it will start to acquire its initial customers at this stage. 

Stage 2: Hypergrowth

As the user base grows, so will the interest in the marketplace. At this stage, the business is likely to receive an immense amount of growth. When this occurs, the business will need to rapidly expand its existing operations (data, storage, bandwidth, etc.) to support its new customers which may end up being an expensive process.

Many businesses tend to fizzle out when they reach this stage, as they do not anticipate the reach of their product. An ever-growing user base can cause the SaaS application to malfunction and stall as there are too many users trying to access the same functions at the same time. 

Stage 3: Stable Golden Goose

Once the SaaS business reaches this stage, it signifies that the business has leveled out. Profitability will increase and new users will sign up for the services offered at a regular pace. The infrastructure of the business will be capable of handling numerous and complex demands of all its users at the same time. 

What are the Types of Cloud Computing Services?

Apart from SaaS software applications, there are 2 other types of cloud computing services which are listed below. 

Infrastructure as a Service (IaaS)

IaaS solutions aid in migrating to the cloud while keeping applications, software, and systems mostly the same. It manages data storage, virtualization, and networking by providing a cloud computing infrastructure. Most appealing to businesses looking to scale operations rapidly. However, IaaS is only a cloud hosting solution, it is not a cloud-based software.

Some examples of IaaS providers are AWS, Microsoft Azure, Rackspace, Google Compute Engine and Digital Ocean.

Platform as a Service (PaaS)

PaaS is the framework that enables developers to create custom cloud-based software required for a business. It is a third-party that handles the software updates, security patches, and other related tasks. Another advantage of the PaaS cloud setup is that it can be designed with higher levels of security for businesses that need to be compliant with privacy laws such as the Health Insurance Portability and Accountability Act (HIPAA).

Some examples of PaaS are AWS Elastic Beanstalk, Heroku,, OpenShift, Apache Stratos and Magento Commerce Cloud.

What are SaaS Growth Marketing Strategies?

The growth marketing strategies largely depend on the core competencies of a business. It is advisable to seek guidance from a SaaS Consulting firm as they can assist in the following ways.
  • Analyze the market and construct a specific plan to position a business.
  • Develop tailor-made growth strategies personalized to a business.
  • Creation of new processes and estimation of a product development life cycle.
  • Listed below are a few of the main SaaS marketing strategies that are used quite frequently.

Introduce New Marketing Channels

When testing new strategies, make sure the business has the revenue required to generate new marketing approaches. Investing in other marketing platforms and channels such as Youtube or Wordpress can lead to the business reaching significant numbers by extending its reach through uploading popular content, organic ranking, a content conversion which is bound to increase the overall traffic on the business website. 

Addition of Product Upsells

For a business to retain its existing users, product upsells can be done in the form of enabling additional features on the SaaS software application. Frequent users are likely to pay more if they can benefit from the premium features offered. Upsells in the form of productivity tools and visual statistics can be enabled to speed up a user’s overall capacity. 

Faster, Robust and Simplified User-Interface

One of the sure techniques in growth marketing is to increase the profitability level of a business through the user-interface. The main point of interaction is where the end-user and the service provided by the business meeting which is the user-interface.

An easy to use, the clutter-free interface will result in more customers signing up for the business. The swiftness and simplicity to carry out tasks will have a larger appeal to more users who will, in turn, recommend your business product to others. In addition to this, reward programs can be provided to loyal customers and listening to user feedback will go a long way.