This is a Guest Postby Mr. Avinash Ramesh Godkhindi, MD and CEO, Zaggle Prepaid Ocean Services Limited
Software delivery is seeing increasing shifts towards cloud-based software models. Of that, Software-as-a-Service (SaaS), which is a subscription-based model that provides software applications virtually, is at the centre of this transition. It’s a potent tool for businesses seeking to convert their capital expenditure to an operationally flexible, efficiency-driven model. The adoption of SaaS platforms is across businesses, large and small. But it’s particularly beneficial for small and medium enterprises (SMEs).
SaaS has changed the way software is consumed. It provides a significant impact on businesses’ scalability and financial flexibility, offering advantages like saving upfront costs, faster setup, and customer compatibility. When business requirements change with growth, companies can adjust their subscription packages, gain access to a new set of features on the go. The inherent scalability of cloud-based SaaS allows organisations to expand with ease, and also provides the flexibility to choose features that is tailored to a company’s requirements.
Little surprise, SaaS has been growing phenomenally in recent times. In 2020, the global SaaS market size was estimated at $121.3 billion, with projections to reach $702.2 billion by 2030, a CAGR of 18.8% from 2021 to 2030. North America is the biggest market comprising half the SaaS industry with Europe and rest of the world accounting for the balance. India’s SaaS industry is also growing pretty fast and is expected to grow to over $45+ billion by 2030.
SaaS advantage
SaaS technology can facilitate numerous advantages for small businesses. Chief among them is cost reduction. SaaS economises resources for small businesses by negating the necessity for costly hardware and software infrastructure, reducing the reliance on tech services. It also enables businesses to allocate resources towards other facets such as marketing and product development. Moreover, SaaS offers a subscription-based payment model where businesses need to pay only for the services they utilise, which can prove to be more economical than conventional software licensing models.
SaaS applications mechanise monotonous tasks and simplify workflows. Employees can thus concentrate on more strategic undertakings, leading to enhanced productivity, efficiency. Further, SaaS platforms also aid small businesses to efficiently manage their expenses with simultaneous real-time insights into their expenditures. It empowers businesses to pinpoint areas to cut expenses and optimise spends.
The product by its inherent nature is aimed at team collaboration, thus allowing teams to work synchronously from any location globally. This can improve communication, thereby increasing productivity and efficiency. It also provides substantial measures to safeguard their customers’ data. This obviates the need for businesses to invest in costly security infrastructure and allows them to concentrate on their core business activities.
Automation and efficiency
Not to mention that such platforms automate repetitive tasks and simplify workflows, thus freeing up employee time for more strategic endeavours. It enhances productivity and efficiency, leading to higher profits and growth. Further, SaaS provides real-time data and insights into customer behaviour and preferences, aiding small businesses in enhancing their customer experience. Such services also equip small businesses with the ability to swiftly respond to evolving market conditions.
As the pandemic hit, businesses were forced to adopt remote work policies, increasing their need for various SaaS-based solutions. As a result, the shift of enterprises towards SaaS from an on-premises model has accelerated, primarily driven by the high cost of on-premises software deployment.
Over the years, SaaS has demonstrated remarkable adaptability and resilience as well. These platforms offer features over time, allowing businesses to save time and access the latest developments quickly. This convenience extends to mobile platforms, and companies have the flexibility of accessing the applications from any digital device and location.
Future ready
AI technology is becoming a standard in the SaaS industry and can have significant benefits for SMEs. AI can help SMEs operate more efficiently, allowing them to compete with larger businesses that have more resources. Further, ML is used in SaaS to automate responsiveness in customer service reports and applications. For SMEs, this could mean improved customer service through AI-powered chat operations with live chatbots, and a more efficient onboarding process.
Notable examples of SaaS applications that have brought about considerable transformations in small businesses include customer relationship management (CRM) software, email marketing software, accounting software, human resource management (HRM) software, and enterprise resource planning (ERP) software.
SMEs can use several types of technology in SaaS platforms. One such is CRM software, which has become an indispensable tool for businesses looking to streamline their customer management processes. SaaS-based CRM systems allow SMEs to manage customer interactions, track sales, and analyse customer data from any location.
Email marketing is a potent tool for businesses to reach out to their customers directly. SaaS-based email marketing software enables SMEs to design, send, and track email campaigns with ease. Even accounting has several advanced features in SaaS platforms. As the process is time-consuming for small businesses, SaaS-based accounting software simplifies this as it automates accounting tasks such as invoicing, expense tracking, GST matching, and more.
Further, managing human resources can be done effectively with SaaS-based HRM software. From finance and HR to supply chain and customer relations, ERP software enables businesses to gain a unified view of their operations and make data-driven decisions.
That said, SaaS applications have the potential to elevate the operational efficiency, customer experience, and overall growth of SMEs. As its effective, pocket friendly, and rapidly deployable, SMEs must make use of SaaS platforms. SaaS can be the difference between being an also ran and having that huge competitive advantage.
