Software as a Service: master the SaaS acronym (at last)!
Introduction
In France, in 2021, the software market will represent sales of 19.4 billion euros, an increase of 10.2% compared to 2020. SaaS accounted for 45% of these sales, compared with just 10% in 2010. Growth that seems unstoppable. And yet, in 2023, the acronym SaaS has a hard time catching on: most people use at least one software-as-a-service (SaaS) application without even realizing it. But what exactly is the SaaS model? What are its advantages and disadvantages for businesses?
What is SaaS mode?
The definition of Software as a Service (SaaS)
Software as a Service (SaaS) is a software distribution model that enables companies to subscribe to applications rather than developing them in-house, purchasing them or installing them locally on their own servers. Instead, they subscribe to a service from a provider who makes the software available remotely, enabling users to access it via the Internet.
Key features of the SaaS model
The SaaS model has several key features that make it an attractive solution for businesses. Firstly, it eliminates the need to purchase applications directly and invest in servers to host them. Users simply need to connect to their workstations to access all available applications. SaaS platforms are generally available on a subscription basis (invoiced by the number of "seats") or on a one-off basis. Companies don't have to invest in the purchase of user licenses, as was previously the case.
Stages in the deployment of a Saas platform :
SaaS tools are easier to deploy than traditional solutions. They can be tested in the form of a Proof of Concept (POC), then rapidly deployed and extended to the whole company, without requiring physical intervention on each individual workstation. This agility in deployment enables rapid access to SaaS solution functionalities and their benefits.
What are the advantages of a SaaS solution?
Accessibility and flexibility of SaaS tools, especially for VSEs and SMEs
SaaS platforms give small and medium-sized businesses access to high-performance, specialized applications without the high costs of acquisition or development. What's more, they allow you to pay only for the functionality you really need, offering you great budgetary flexibility. These solutions are scalable, which means they can easily adapt to business growth. This means you can remain agile and responsive, and take advantage of new opportunities, without being held back by heavy, costly infrastructures.
SaaS applications simplify upgrades and maintenance
Another significant advantage is the simplification of application updates and maintenance. Unlike traditional solutions, where companies have to manage these aspects themselves, the SaaS model offloads these responsibilities to the solution's technical teams.
SaaS: tax advantages
Finally, choosing the SaaS model offers tax benefits for all companies. SaaS is a service, the cost of which is immediately deductible from the company's income, whereas the investment involved in a more traditional model will be deducted from income through amortization spread over several years. SaaS also offers greater flexibility in cash management.
The disadvantages of the SaaS model
Dependence on the service provider
By opting for SaaS, companies entrust their applications and data to an external service provider. This means they are dependent on the availability, reliability and quality of the services provided by the supplier. In the event of a service failure or malfunction, the company may face operational disruption and loss of access to its critical applications.
Data security and confidentiality concerns
The hosting and processing of data by a SaaS service provider can raise questions about their protection, particularly in the context of the General Data Protection Regulation (GDPR). Companies must therefore ensure that their SaaS provider complies with these regulations and implements the appropriate measures when they evolve.
SaaS vs On-Premise: how to choose?
What are the advantages and disadvantages of Saas or on premise?
On-Premise refers to the acquisition and installation of software directly on a company's internal servers. The SaaS model offers a cloud-based approach, enabling companies to subscribe to remotely hosted applications. SaaS offers accessibility, flexibility and simplified maintenance, while On-Premise offers direct control, but requires in-house resources for maintenance and updates.
Electronic content management (ECM) in the SaaS context
SaaS-based electronic content management (ECM) offers a modern, efficient approach to managing documents and information within a company. Unlike traditional solutions, SaaS EDM provides remote access to a hosted platform. This approach simplifies document management, promotes collaboration and reduces the constraints associated with in-house infrastructure and maintenance.
SaaS for business applications (ERP, HR, CRM, etc.)
The use of SaaS software in human resources management (HRIS)
SaaS software offers numerous possibilities and uses in human resources management (HRMS). Companies can use SaaS solutions to manage recruitment of new talent, absences, payroll and training plans. These solutions offer a high degree of flexibility, enabling HR staff and collaborators to access essential information and functionalities at any time and from any connected device.
Advantages of SaaS software for management systems such as ERP and CRM
SaaS offers many advantages for management systems such as ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management). These cloud-based solutions can be accessed remotely. This enables sales staff, for example, to manage ongoing sales operations or customer relations more efficiently. SaaS also offers easy integration with other marketing tools: campaign management, marketing automation and customer data analysis...
Purchasing IS and business software in SaaS mode
SaaS solutions also make it easier to manage purchasing, collaborate with suppliers, and manage contracts, orders and procurement. Teams benefit from better data visibility, increased task automation and simplified workflow management. By opting for SaaS in purchasing management, companies can improve their operational efficiency, reduce costs and strengthen their relationship with suppliers.
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