Pros and cons of SaaS

Written By
Rakhi Sethi
Blogger
Last updated at April 21, 2022
Pros and cons of SaaS

What are the Pros and Cons of using SaaS

 

 

Subscription-based services for everything from beauty products to coffee are a hot trend these days, and it makes sense. Your customers want convenience -- mainly when the option exists to receive something on autopilot.

 

Software as a Service is a way of providing software where users pay to use the software rather than paying for the whole thing upfront. It's great for publishers and clients.

 

What is Saas?

 

SaaS is a term for software as a service, a type of software which is delivered over the internet. The key feature of saas is that it is a subscription-based model. SaaS services are sold on a subscription basis, where the customer pays a monthly fee for access to the service. There are many types of saas services, such as enterprise resource planning (ERP), software as a service (SaaS), and cloud computing.

 

The upside and downside of using SAAS (Software as a Service)

 

SaaS is becoming the go-to model for SaaS businesses. Who wouldn't want to pay a low monthly rate for robust, fully functional software? However, SaaS has its own set of rules. You will encounter strict contract terms and penalties if something goes wrong.

Let's review the pros and cons of using the SAAS model of software licensing.

 

The Pros

 

Cost

 

For businesses and organizations with many individual departments, subscription-based software licensing makes it easier to understand and allocate costs. It's also more cost-effective than purchasing and maintaining one extensive system for the whole company.

 

Many software companies are now switching to a different pricing model. They're selling a service. This means that instead of paying once for the software, they will charge you every month. This makes it cheaper for small businesses that can't afford to buy the entire program but want some of its features.

 

Maintenance

 

The primary benefit of SaaS is the way it removes much of the burden of long-term software maintenance. The software automatically patches itself, removing a significant roadblock to productive use. While you're still responsible for securing your data, SaaS further reduces costs by relieving you of much of the responsibility for keeping your system updated.

 

A subscription model means the software is automatically updated as new versions are released. Your staff won't be using outdated tools, and the business doesn't have to spring for a whole new application system.

 

Mobility

 

The remote office has become a necessity in today's society.

 

SaaS can serve as a vital component in the new mobile office. SaaS is online software that works through an internet connection, which means it's accessible anywhere there's a network. SaaS-based applications can be used anywhere and will always be up-to-date. Once users are connected, the software will work from any location or device.

 

The Cons

 

Security

 

The responsibility of ensuring data security when using the SaaS model for applications lies with business owners. They are ultimately responsible for making sure that their employees take all necessary steps to prevent data breaches.

 

Any mobility management solution should include endpoint security, which is crucial to protect against catastrophic data breaches.

 

SaaS increases the importance of network security on mobile phones by providing increased access. However, at the same time, it makes it a challenge for companies to protect devices' data and information from getting released in that environment. Businesses need particular endpoint security to ensure that their infrastructure doesn't become vulnerable.

 

Contractual obligation

 

The licensing process can be tricky and confusing. There are often steep penalties for going over the allotted number of software licenses for a given subscription period, costing a company millions of dollars if not adequately monitored.

 

Finding good service and support programs for your developing software can be a real challenge. Software Asset Management (SAM) is an integral part of IT job. The publisher needs to know how many licenses each business unit or department is using and how many the business is entitled to — to avoid over-and under-usage.

 

Loss of control

 

The software-as-a-service model shifts control from businesses to publishers and developers. SaaS makes applications available over the internet on a subscription basis and allows access anywhere by anyone who has permission.

 

Now, that can be a good thing. The auto-update feature can be convenient, but if you have to comply with the usage rules of the publisher, that's not so convenient. It is a complicated process, and companies that are not prepared for it will find themselves struggling to navigate it.

 

A skilled auditor can help you minimize the financial risks caused by a software audit.

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