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The Pros and Cons of Building a Software as Service (SaaS) Offering

The Pros and Cons of Building a Software as Service (SaaS) Offering

HARIDHA P369 29-Nov-2022

The  Pros and Cons of Software as a Service (SaaS)

Software as a Service (SaaS) or on-demand software is a method of distributing software programmes to end users via the internet. Most firms can benefit greatly from SaaS, particularly in terms of cost and flexibility. However, the drawbacks of SaaS (such as lack of control) are significant and should not be overlooked.

What exactly is Software-as-a-Service (SaaS)?

Software as a service (SaaS) is a software licencing and delivery paradigm in which software is:

subscription-based licensing - typically monthly or annually - centrally hosted in the cloud accessed via a browser over an internet connection.

SaaS is a software-as-a-service (SaaS) alternative to traditional on-premise software installations. It has become a popular technique of delivering a wide range of corporate applications, including:

  • Software for the office and communication
  • Payroll and accounting software
  • Software for client relationship management
  • Human resource management software
  • Enterprise resource planning applications
  • Mobile applications for corporate performance management suites

Pros of SaaS

SaaS has several potential advantages over traditional commercial software installation strategies, including:

Cheaper start expenses – SaaS is often subscription-based and does not require any upfront licensing fees, resulting in lower initial costs. The SaaS provider handles the IT infrastructure that runs the applications, which reduces hardware and software maintenance costs.

Rapid installation and deployment - The SaaS application is already installed and configured in the cloud. This reduces common delays caused by often lengthy traditional software deployment.

Simple upgrades – SaaS providers handle hardware and software updates, centrally deploying upgrades to hosted apps and removing this strain and obligation from you.

Ease of access - To use a SaaS application, all you need is a browser and an internet connection. SaaS is more accessible than traditional corporate software installation because it is generally available on a wide range of devices and from anywhere in the world.

Scalability - SaaS companies typically provide a variety of subscription options as well as the freedom to adjust subscriptions as needed, such as when your business expands or additional customers require access to the service.

SaaS, and more broadly cloud computing, can help you make the most of a restricted IT budget while providing access to cutting-edge technology and expert assistance. However, before making a final selection, you should examine certain potential drawbacks.

Cons of SaaS

Lack of control - In-house software applications give firms more control than hosted solutions, which are controlled by a third party. Typically, everyone must utilize the most recent version of the software application and cannot postpone upgrades or feature improvements.

Concerns about security and data - access management and the privacy of sensitive information are important concerns with cloud and hosted services.

Although SaaS is growing increasingly popular, there are still numerous applications that do not provide a hosted platform.

Because the SaaS model is based on web distribution, if your internet service goes down, you will lose access to your programme or data.

Reliability - Because SaaS apps are not hosted on a local workstation, they may execute at somewhat slower speeds than on-premise client or server applications.


Writing is my thing. I enjoy crafting blog posts, articles, and marketing materials that connect with readers. I want to entertain and leave a mark with every piece I create. Teaching English complements my writing work. It helps me understand language better and reach diverse audiences. I love empowering others to communicate confidently.

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