113 billion dollars
is the amount of money that the SaaS industry will be worth in just two years. If that massive figure surprises you, it shouldn’t.
Businesses and individuals alike are quickly migrating away from the old model of installing hundreds of applications on their computers in favor of having access to millions of applications in the cloud.
But what exactly are the pros and cons of SaaS? Does the cloud hold value for you as a business owner or as an individual?
We’ll quickly run through some low-hanging SaaS advantages and disadvantages so you can answer that question
We’ll open up our pros and cons of SaaS exploration by analyzing this technology’s advantages. While the volume of SaaS advantages are numerous, here are the top three:
Access to Your Applications Anywhere
SaaS users don’t have to be on any particular device to access their cloud-based application. Any computer, no matter its power, can leverage SaaS so long as it has an active internet connection.
More Control Over Your Spending
SaaS subscribers like that they can use software by paying a low monthly fee as opposed to needing to spend thousands on a commercial application upfront. Also, SaaS’ subscription pricing usually has tiers that allow users to only pay for features that they use.
Consistent Earnings for Your Business
If you’re a software developer, selling your applications via SaaS allows you to collect a predictable monthly income through Billsby,
Square and other recurring income.
The SaaS model is a lot easier to work off of than the previous model of selling new software and living off of its proceeds until your next edition comes out.
Nothing in life is perfect and SaaS is no exception to that rule. Here are commonly cited SaaS disadvantages:
You Don’t Own Your Software
If you build your whole business around a piece of software that you buy, you can rely on it to meet your needs for however long that you’d like to because you own it. SaaS, on the other hand, is a rental.
A SaaS application could raise its subscription fee by hundreds of dollars over the course of a couple of years and all you could do is pay or cancel your service which could bring your workflow to a halt.
Security Could Be an Issue
Depending on the size of your organization, trusting an off-site application with your company’s data could present problems. For example, if you’re logging transactions through a SaaS application and it gets hacked, your customers could sue you for lost credit card data.
Most SaaS applications use cutting-edge security so this shouldn’t be too big of a concern, especially if your company is properly insured. Still, there’s something to be said about managing your data on-site where you can personally protect yourself against intrusions.
Wrapping Up Our Pros and Cons of SaaS
While there are several pros and cons of SaaS, the consensus seems to be that pros outweigh cons and we’re inclined to agree with that.
Whether you’re a business owner or an individual, we recommend experimenting with SaaS to see the value that it can bring to you. If you find that you don’t like what you’re getting, nothing is stopping you from reverting to an old workflow.
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