Benefits of SaaS

Reduced time to benefit

• SaaS differs from the traditional model because the software (application) is already installed and configured. You can simply provision the server for an instance in cloud, and in a couple hours, you'll have the application ready for use. This reduces the time spent on installation and configuration and can reduce the issues that get in the way of the software deployment.

Lower costs

• SaaS can provide beneficial cost savings since it usually resides in a shared or multi-tenant environment, where the hardware and software license costs are low compared with the traditional model.
• Another advantage is that you can rapidly scale your customer base since SaaS allows small and medium businesses to use a software that otherwise they would not use due to the high cost of licensing.
• Maintenance costs are reduced as well, since the SaaS provider owns the environment and it is split among all customers that use that solution.

Scalability and integration

• Usually, SaaS solutions reside in cloud environments that are scalable and have integrations with other SaaS offerings. Compared with the traditional model, you don't have to buy another server or software. You only need to enable a new SaaS offering and, in terms of server capacity planning, the SaaS provider will own that. Additionally, you'll have the flexibility to be able to scale your SaaS use up and down based on specific needs.

New releases (upgrades)

• With SaaS, the provider upgrades the solution and it becomes available for their customers. The costs and effort associated with upgrades and new releases are lower than the traditional model that usually forces you to buy an upgrade package and install it (or pay for specialized services to get the environment upgraded.

Easy to use and perform proof-of-concepts

• SaaS offerings are easy to use since they already come with baked-in best practices and samples. Users can do proof-of-concepts and test the software functionality or a new release feature in advance. Also, you can have more than one instance with different versions and do a smooth migration. Even for large environments, you can use SaaS offerings to test the software before buying.

Accessibility

• Run on any internet browser
• Run on any device
• Accessible anytime, from anywhere

Challenges of SaaS

• Loss of control: The vendor manages everything
• Speed: Some solutions may be slightly slower than client/server apps as it is split amongst all customers that use that solution.