In this digital era, SaaS or software as a service, is the talk of the town. Now more and more businesses are trying their luck in this business model. This business can help people in many ways. It is one of the best sources of making a good profit at minimum cost. Have a look at some fantastic SaaS-based business model stats:


  • By the end of 2020, 41% of workloads will be located on the public cloud.
  • 71% of businesses across the globe are deploying cloud-based SaaS business models to improve the delivery speed of IT service.
  • The SaaS market’s cumulative size across the globe by the end of the year 2020 is projected to reach around $157 billion.
  • 73% of organizations across the globe indicated that nearly all their mobile apps will be SaaS by the end of the year 2020.

 What is SaaS?

 SAAS being a part of almost everyday’s life.Software as a Service, or SaaS, is one of the three basic cloud-based computing categories, and the most common with consumer-level products alongside Infrastructure-as-a-service & Platform as a Service. Simply put, the "as-a-service" translates to over the internet. 

 So SaaS is a third-party application available over the internet, with no physical connection to any device. Your email client is likely SaaS. Google Docs and Microsoft Office 365 are SaaS, which are already offering productivity apps over the internet. For businesses, there's SaaS for sales management, customer relationship management, financial management, Human Resource Management, billing, collaboration... really anything.

 SaaS applications are widely used by an array of IT professionals and business users, as well as C-level executives. The renowned leading  SaaS providers include Salesforce, Oracle, SAP, Intuit, and Microsoft. It can be cost-effective as SAAS eliminates the expense of hardware, maintenance, licensing, and installation.

 SaaS offerings usually operate on a pay-as-you-go model, offering businesses flexibility. SaaS also provides high scalability for any range of projects in needs, automatic updates, which reduces the burden on it, and accessibility and persistence since users can access SaaS content from any internet-connected device and location. But a notable disadvantage is the fact that organizations must rely on outside vendors for the software, and to have little control. For instance, providers might experience service disruptions, pose unwanted service changes, or fall victim to a security breach.

 The Rise of Mobile SaaS Applications

This delivery model offered overwhelming benefits for both IT executives and service providers and it was only a matter of time before the world woke up and embraced the technology. With a traditional enterprise software model, companies would purchase and own their systems in Hardware. This usually required months of planning, significant capital investment, and difficult buy-in from other departmental heads. After this, the organization had to incur further costs related to maintenance, energy consumption, server room resources, upgrades, and software licenses. 

Once they made the purchase, they were locked-in even if the implementation was found to be a poor organizational fit or if conditions changed to make the new system obsolete. This presented a significant risk considering the high failure rate of enterprise software initiatives. But with SaaS and cloud computing, you only pay for the software & resources that you need. All of the maintenance burdens get shifted to the cloud provider who is better positioned to capitalize on high volume discounts and economies of scale that come from maintaining a multi-tenant data center environment.

For an enterprise cloud, computing has very low entry-exit and switching costs. This greatly minimizes the amount of business risk that companies incur when implementing new software solutions. Cloud computing also offers a number of unique benefits for service providers and software developers within the enterprise space. In the past selling big-ticket enterprise software and hardware meant high marketing costs and long sales processes by selling cloud services instead the cost per sale is much lower due to the lower barrier to entry. As customers rent on a monthly basis, there is a stable recurring month-to-month revenue stream. Software vendors love SaaS because cloud software can't be pirated, and more users sign up as well as margins improve because total resource usage becomes more efficient. 

Despite all of these great benefits, it was still a number of years before the market really began to eagerly embrace SaaS. So why are companies just now starting to take notice? It's really a mixture of many different variables that slowly came together to form a critical mass. Here, I have outlined some of the key factors that have contributed to the recent growing trend of SaaS adoption within the enterprise:

The Popularity of the Cloud 

Organizations are much more trusting of the cloud than they were 10 years ago. The company saw that risk-taking early adopters have been using the cloud for years with almost no major problems. It has inspired other more conservative businesses to jump aboard and reap the benefits of cloud computing 

Big Names are Endorsing SaaS

Another factor that has influenced the acceptance of cloud computing has been the fact that the biggest names in the industry are now endorsing SaaS. All of the major enterprise players including IBM, Microsoft, and Oracle are now endorsing enterprise cloud computing.

Green Computing

As processors continue to pack more power into a smaller space, energy consumption and cooling are becoming key concerns for IT administrators. This means higher energy bills and costly server room upgrades. Due to their efficient resource usage, storing servers in the cloud can greatly reduce per capita energy consumption and help companies extend the useful life of their expensive internal server rooms. 


SaaS and cloud service can be purchased on an as-needed basis and new users can be added or deleted within minutes. Also, the data center can be rapidly scaled or moved to another location by simply filling out a form on a website. It makes incredibly convenient and economical for business owners and IT executives. 

Support costs 

As SaaS applications are always current, organizations don't have to waste money supporting old versions of applications. Internal support calls are also reduced since end-user technical help is supplied by the software host instead of your internal IT staff. 

Capital investments 

With installed software companies have to overspend in order to purchase underutilized resources like server room space, processors, hard drive space, and RAM. But when applications are hosted in the cloud, you only pay for what you use and buy more when you need it. 

Poor economy 

During uncertain economic times-- like the present COVID Era-- companies will look for ways to remain flexible so that they can adapt to change and quickly act on new market opportunities. This is important as unstable economic times are when companies are most likely to merge or break up into smaller units. 


SaaS vendors are usually very knowledgeable and experienced when it comes to deploying applications that comply with regulations like HIPAA, Sarbanes-Oxley (SOX) and PETA and their facilities are frequently audited. SaaS providers can also provide low-cost temporary access to tremendous server processing capability for electronic discovery. 

Mobile Computing 

The rapidly growing popularity of smartphones and tablets means that employees will be working from multiple devices simultaneously. In order to keep these devices synchronized, work will need to be done through a single centralized system. SaaS is well suited for this purpose.

Service-Oriented Architecture 

With service-oriented architecture also called SOA, business applications are structured as a series of components that can be modified, reused, or combined with other parts to quickly create secure, compliant, and consistent customized business applications. You can combine data from multiple internal systems into a single interface or even allow trusted third parties to integrate your systems’ components into their own in-house applications. A good example would be a supplier who could automatically generate purchase orders based on your company's warehouse stock levels.


SaaS vendors typically have very robust security in place, and they don't charge their customers for it. Since SaaS stores data off the local client machine, the risk of a privacy breach is greatly reduced if a computer or mobile device is lost or stolen. Historically security and privacy have always been the primary sticking points when it came to convincing enterprises to trust SaaS. Over the years there has been a lot of progress in this area and customers have also become much more knowledgeable when it comes to cloud security. 

Why Businesses are Moving Their SaaS Business to Mobile Applications?

There are over 5.15 billion unique mobile phone users around the world in 2020. This number is expected to 7 billion by next year. A staggering 68 percent of mobile phone time is spent on apps. Mobile app use is predicted to skyrocket over 1,000 percent in the next three years to a 156 billion dollar market. 

SaaS-based businesses need mobile apps as these are revolutionizing the way customers shop and search for information on the products they are interested in. Many SaaS-based companies are seeing a huge increase in revenue by having a mobile app. Your SaaS business can really benefit from having a great mobile app. Being accessible on mobile devices everywhere can take your SaaS business to new heights of interaction that can improve sales and service and your customer’s overall business experience. 

Nowadays, many businesses are moving their business to the SaaS application model due to the various benefits of having a mobile application. Therefore the demand for app making company is increasing day after day. If you don't have a mobile app for your SaaS-based business yet, you are losing your huge client base. A great SaaS-based application can help your business in many ways. 

Here are some of the popular reasons why you should develop a SaaS-based mobile phone app now:

Connect With Your Clients Easily and Promptly

Smartphones are very personal devices that most people rely on a daily basis to help them with a variety of tasks. Reaching people on their smartphones is very direct and a SaaS app can give you a direct link to your customers. 

Building Loyal & Regular Customers 

A SaaS-based app that offers your potential customers great benefits or serves a very useful purpose can help build customer loyalty. 

Reaching New Customers 

If your SaaS-based mobile app serves a general-purpose and serves it well more and more, people than just your customers will be interested in it. Your present customers will share your app with their friends and families therefore it will also help you take your SaaS model to a new customer base.

Provide a New Experience to Your Customers

Through your mobile app, you can get customers the chance to join your mailing list or opt into text messages as long as it's not intrusive or required asking people to provide certain demographic information about themselves. It is a great way to learn more about your customers and you are using your SaaS app distributing coupons people are more likely to download the app if it will help them save money. 

Let’s Wrap Up

No doubt SaaS business offers lots of benefits like there is little need for customization as the system can be configured according to the requirements of the customer and software as a service builds a community through which best practices are defined in the product roadmap and makes it available for everyone who is using the platform.

If you were thinking of moving to a software as a service-based model, these benefits should help you gain clarity on why software as a service is the preferred software model among enterprises. We understand that businesses can struggle to find time and resources to build a SaaS app that's simple and effective. 

Creating an app without expertise can potentially damage your business and leave your customers with the wrong mobile experience. You need to choose top app development companies in the USA with a highly skilled team of app experts that can offer the perfect mobile solution to SaaS businesses.