SaaS – An innovation story for businesses
SaaS or Software as a Service is gradually becoming popular and is mentioned in many "hot" topics today as a motivating step to help businesses optimize IT costs, promote business and more. Let's learn about SaaS with FPT Cloud Hub!
In the past, when we needed to buy and use a specific software, we often had to buy the entire product package, including source code, environment, server and other components. This model, often referred to as “Software as a Product” (SaaP), is a traditional, popular method of purchasing and using software, where the software is considered an independent product.
For example, when deciding to buy a new laptop, after choosing the machine configuration (chip, RAM, hard drive, etc.), the business begins to install the software to use. And when purchasing software, companies often have to buy a version or license for that product, then install and manage it themselves on company computers. This model allows users to have maximum control and flexibility in managing their software and hardware, but sometimes, it also poses some challenges, especially when having to deal with failures, problems or updates by themselves.
But now, entering the world of SaaS (Software as a Service), we will explore a completely different approach. Instead of having to purchase and manage software yourself on a personal computer, SaaS focuses on providing software as an online service. It allows businesses to access software from any internet-connected device without worrying about software installation, upgrades, or maintenance. The appearance of SaaS promises to bring more convenience, helping users focus on their work instead of worrying about software management.
What makes SaaS special?
1. SaaS save costs for businesses
SaaS is known as a cloud-hosted service and is charged by time of use (pay as you go), unlike in the past when we needed to install new software, we needed to buy a license or pay with full costs for the software and other subscriptions or addon services.
Now, you only need to pay for buying/renting software as needed, the rest will be done by the seller/provider providing access rights according to standards, this helps businesses avoid investments heavily on software infrastructure.
SaaS works similarly to renting a computer by the hour at an internet store. You only need to pay a low cost but can experience all the "luxurious" services for a certain period of time depending on your needs. client. In addition, when there is a new software version or a new solution is released, you can completely use it at a much more economical cost.
References about expense reports:
99+ Useful SaaS Stats 2024 [Facts and Trends] (thrivemyway.com)
2. Save times and human efforts
The time to install and complete the system in an on-premise environment often ranges from several months or even a year. Instead, SaaS saves significant time and effort now that everything is installed and pre-configured.
In just a short time after being activated, the application will be installed and ready for you to use immediately. This will help reduce time consumption and become much simpler.
3. Ability to integrate with other systems
SaaS applications are characterized by the flexibility to interact and collaborate with other systems and applications smoothly. This integration not only facilitates automatic data sharing between applications, but also promotes workflow efficiency.
SaaS provides diverse applications for many aspects of business, from customer management to finance and manufacturing. This helps optimize workflows and increase productivity.
A specific example is Zoom, a company that provides SaaS solutions for online conferencing, webinars, and e-learning. The popularity of Zoom has increased sharply, especially in the context of the COVID-19 pandemic when the demand for online work and meetings increased.
Not only limited to the field of online meetings, Zoom has expanded its services and introduced new products and features such as Zoom Phone (cloud-based phone system), Zoom Rooms (software for rooms). meetings), and Zoom for Home (hardware for working from home). With remarkable success, Zoom Video Communications has won many awards, including 3 awards in 2022 and 17 awards in 2021.
If you are interested, you can also refer to other case studies about the successes of SaaS in the article
4. SaaS provides anytime, anywhere access for employees
High availability is one of the important advantages of software services in the form of SaaS. Users can access it anytime, anywhere remotely, even at home, cafes can access it as long as there is an Internet connection. This gives customers more flexibility and time optimization, especially in cases where they have to work remotely.
SaaS and Business Development
Currently, SaaS (Software as a Service) has become an important part of the information technology industry, and has attracted great attention from many organizations and businesses. Major providers include Amazon Web Services (AWS), Google Cloud, Microsoft Azure,...
The growth and scale of these providers has made SaaS very useful. Especially for startups, obtaining initial capital is often a challenge. In such a situation, SaaS becomes a solution that helps them save time and resources, and focus on core business and product development without having to manage infrastructure and software.
More specifically, the Covid-19 pandemic has had a strong impact on the technology market, as technology companies have had to apply remote working (Work from home), which has led to an increase in increased demand for Software-as-a-Service solutions such as Google Workspace: Google Drive, Google Docs, Google Sheets,…
Organizations have also focused on driving SaaS-based digital transformation to adapt, with companies limiting investments in technology hardware, deploying cloud-based solutions to ensure business continuity in times of crisis, helping to minimize financial risks and improve the ability to execute technology projects. It also means providing easy access to cutting-edge tools and applications that enhance performance and respond quickly to market requirements.
According to Fortune Business Insights, the global SaaS market is expected to grow from $273.55 billion in 2023 to $908.21 billion in 2030, with a CAGR of 18.7% during the forecast period. Fields that have been developed using SaaS include the banking & financial services industry (BFSI), health, retail, IT, etc. For example, in the medical field, rapid progress in Telemedicine technology, such as video/audio conferencing, telesurgery and teleradiology, will drive the adoption of cloud services.
In conclusion, SaaS is not just a temporary trend but also a powerful tool to help businesses grow and operate effectively in the digital age. The agility, flexibility, and cost optimization capabilities of SaaS are pushing it to become the top choice for many organizations, helping to quickly adapt to changing business environments.
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Source: Bui Ho Linh Nhi
