Enterprises use software-as-a-service (SaaS) applications as a part of their tech stack. However, many business decision-makers still misunderstand the technology. Myths span from data ownership concerns to customization in SaaS products.
As per a recent report by Report Linker, “Software as a service (SaaS) Global Market Report 2023,” in 2027, the SaaS market is anticipated to grow to USD 328.03 at a CAGR of 6.6%.
With the growing demand, businesses must dispel these myths by understanding the facts. It ensures seamless process alignment.
Here are a few SaaS myths businesses must be aware of.
One of the primary SaaS myths is that the model is only for certain-sized organizations. It is because smaller companies lack the resources. They also lack an adequate budget to implement the applications.
On the contrary, large organizations worry about whether SaaS can meet their needs. Businesses must understand that SaaS is viable for all sized organizations. SaaS solutions are flexible and accommodate all company sizes with near-on-demand scalability.
When capitalizing on SaaS benefits, size, geographic reach, or an organization’s digital maturity doesn’t matter.
Building and launching a successful SaaS product is challenging. It necessitates a complex process that demands time, resources, and expertise.
It has integration complexities during the SaaS or on-premises solutions implementation. Complexities are much more when connecting several clouds and systems. Therefore, businesses must set up a structured way of delivering projects.
SaaS development is more straightforward than software development. However, it requires expertise in cloud computing, web development, and database management.
The other common myth is that using SaaS applications in the cloud limits access to data. However, it is not valid. SaaS providers focus on offering flexible, secure, and agile options for data engagement.
Moreover, SaaS platform providers offer many options to engage securely with data.
SaaS has a simple and seamless digital approach. These seamless integrations bring the latest functionalities which do not need vigorous testing.
Businesses can adjust real-time consumption levels of service as per their needs. SaaS saves related costs and requires no IT infrastructure management.
Moreover, enterprises must conduct recurring negotiations with SaaS providers handling the data. They must understand that switching between providers is not right amidst a roll-out situation.
Security is a critical matter for SaaS. Its applications are secure by design. But the way they are configured and governed poses a risk. Lack of security measures can expose the data to data breaches and cyber-attacks, causing financial and reputational damage.
Hence, companies must make efforts to enhance their services. As per a recent report by Cloud Security Alliance, “State of SaaS Security: 2023 Survey Report,” SaaS security is a top priority for 80% of businesses.
The same report states that only 58% of businesses say their existing SaaS security solutions cover 50% or less of their SaaS applications.
The providers offer tight security services with high levels of data protection. It enables businesses to store data through multi-cloud solutions during uncertain situations.
More importantly, regulation is a crucial factor in SaaS. Businesses must understand the providers’ legal restrictions. Also, they must involve an excellent legal team.
This way, they can ensure a comprehensive analysis that aligns with regulatory changes. They must also ensure that the providers’ regulatory coverage is clear.
SaaS products need regular maintenance and support. It helps them remain secure, reliable, and scalable. The providers always aim to monitor and enhance their products. Hence, they must offer ongoing customer support to ensure customer satisfaction and retention.
A SaaS product’s success depends on the provider’s ability to provide reliable service. Thus, it requires regular investments and effort after the product launch.
Businesses offer high-quality custom software development services. It helps them meet the specific requirements and customer branding.
While some products have a standard look, many providers provide better-customized options. It ensures that the customer gets the required functionality.
SaaS products have complete online visibility. However, marketing efforts are vital to their success. Marketing strategies help businesses create brand awareness and generate leads.
It also helps them transform potential customers into paying customers. A SaaS product might not gain traction and reach the target audience due to a lack of marketing.
One of the common myths about SaaS products is the lack of data ownership. The providers always include data ownership and access rights in their terms and conditions.
It means that the businesses can retain the data’s ownership. At the same time, they can access the data anytime they want.
Companies must constantly review the terms and conditions. This way, they can ensure they are fully aware of their data ownership and access rights.
SaaS has a low cost of entry. It has a minimal total cost of ownership (TCO) and a robust ROI. On-premise solutions demand more upfront capital costs for acquiring and hosting the solution. In addition, businesses have to bear the ongoing IT costs to manage it.
SaaS solution eliminates the need to invest in additional server capacity and software licenses. The vendor efficiently manages the software and hardware.
They deliver upgrades automatically. At the same time, as businesses can add data, the software scales to support the load cost-effectively.
It reduces the time and entry costs allowing enterprises to gain the advantages of using the software quickly.
Also Read: Infrastructure-as-a-Service (IaaS) and its Top Three Vendors
Businesses need an internet connection to access SaaS products. But, many SaaS development organizations offer offline capabilities. It makes the products accessible even in areas with weak internet or during outages.
Businesses need to recognize and dispel the myths. Adhering to these myths might lead to complexities, failure, and missed opportunities.
They must find the best solutions that align with the business goals. They must understand that SaaS products need regular maintenance and support.
Most importantly, SaaS is reliable and secure, and they can customize it to meet specific needs.
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Apoorva Kasam is a Global News Correspondent with OnDot Media. She has done her master's in Bioinformatics and has 18 months of experience in clinical and preclinical data management. She is a content-writing enthusiast, and this is her first stint writing articles on business technology. She specializes in Blockchain, data governance, and supply chain management. Her ideal and digestible writing style displays the current trends, efficiencies, challenges, and relevant mitigation strategies businesses can look forward to. She is looking forward to exploring more technology insights in-depth.
