Software as a Service (SaaS) offers cloud-based solutions that eliminate the need for costly hardware setups and complex maintenance needs. It has received widespread adoption without showing any signs of stopping. It has become the driving force for many digital transformation projects in recent years, and for good reason.
This guide will explain in detail how this modern solution works and benefits businesses regardless of size without the technical jargon.
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Contents
Software as a Service (SaaS) is a software distribution model. It allows users to instantly access their software of choice, essential tools, applications, etc., anywhere, anytime, via any device (i.e., laptops, smartphones, and tablets) as long as they are connected to the internet.
Signing into your email, checking incoming messages, drafting responses, deleting junk, etc. is a simple example of a SaaS application. What you do not see behind the scenes is your email (SaaS) provider managing all technical aspects (maintaining and updating the email platform), so you have one less thing to worry about.
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Business software has shifted dramatically from complex, costly on-premise systems to agile, cloud-based solutions. Traditional software demanded hefty hardware investments and constant maintenance. Cloud solutions eliminate these burdens.
Today's SaaS ecosystem takes up a significant market presence, with venture capital investments reaching USD 274 billion in 20241. Experts project the SaaS market to reach $1,228.87 billion by 2032, with a compound annual growth rate (CAGR) of 18.4% from 2024 to 20322.
The vertical SaaS solution market is particularly promising. It is expected to reach USD 157.4 billion by 2025, with a CAGR of 23.9%3. The definite plus of leveraging SaaS is the ability to take advantage of the latest technology, namely AI and machine learning. These two techs are becoming key components of SaaS offerings, with 87% of SaaS companies enjoying better growth thanks to AI driving personalisation initiatives3.
This signifies that the cloud is here to stay.
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Essentially, SaaS applications fall into two categories:
Horizontal SaaS applications (e.g., email marketing platforms) are more versatile. They cater to a wider range of customers across various industries. Vertical SaaS, on the other hand, targets specific sectors with specialised tools, such as hospitality management systems or retail analytics platforms.
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SaaS is more popular than you might think. Approximately 99% of firms and 78% of small businesses use at least one SaaS solution to streamline daily tasks4, enable data-smart decisions, or adapt quickly to changing business needs.
SaaS software has become increasingly popular due to the following compelling reasons:
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Key components that make SaaS work:
SaaS providers invest heavily in robust, scalable infrastructure, including servers, storage, networking, and security, to ensure consistent, reliable software availability and performance.
They typically host applications and data on their own servers and databases or utilise readily available third-party cloud service providers, such as AWS, Infor, VNG, etc. Leveraging third parties does come with a great benefit: it allows SaaS providers access to the latest tech and innovations faster. These third-party vendors also already have in place vigorous security practices, which can add extra value to software providers and their customers.
Instead of deploying different software versions for different operating systems, SaaS providers develop and maintain just one version. Any updates and new features are distributed centrally to the cloud environment, making them instantly available to all users without the need for downloading and installing on each client’s workstation.
SaaS providers offer ongoing customer support and training, typically over the internet via dedicated resource hubs, support helpdesks, etc., to ensure users at all levels can effectively utilise the software in their daily operations.
A unique feature of SaaS is its subscription pricing model—clients pay a fixed recurring fee every month, quarter, or year instead of one-time license fees. The subscription-based pricing models enable SaaS providers to generate a more stable revenue stream as well as achieve economies of scale by serving multiple customers on shared infrastructure.
To picture how SaaS works for end-users, imagine renting an apartment in a large building complex:
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Contrary to a common misconception, data is safely secure in the cloud.
A joint study from Stanford University Professor Jeff Hancock and security firm Tessian reveals a sobering truth: 88% of data breaches stem from human error5. An earlier study by IBM reveals an even more startling figure—95 per cent. Human action can potentially destroy systems and the business' reputation.
SaaS providers invest heavily in maintaining their valuable assets, which are the cloud infrastructure, applications, and data so that their customers can rest assured and rest well at night.
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A robust mechanism requires not one single security protocol but a multi-layered approach. Essentially, this involves strict security measures and practices to be implemented at various levels:
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Infor SunSystems Cloud has gained a strong reputation for being the solution of choice for businesses in various sectors, such as hospitality, financial services, oil and gas, education, non-profit, and more.
Benefits
Infor SunSystems Cloud is known for its unified, flexible chart of accounts. What benefits this brings is providing users enhanced visibility into their finances, eliminating the need for reconciliation.
Moreover, SunSystems Cloud’s powerful reporting tools allow users to build reports that suit their specific organisation and industry needs or utilise the pre-built ones to save time.
The solution also boasts multi-currency and multi-language capabilities, supporting more than 5 reporting currencies per transaction and 30 languages.
Case in point: Infor SunSystems Cloud for Hospitality
As the hospitality sector rebounds post-pandemic, Accor IMEA is moving its accounting systems to the cloud with SunSystems Cloud. This transition is crucial for Accor to enhance operational resilience, standardise IT infrastructure, and boost efficiency, oversight, and cybersecurity across all properties globally.
Moreover, shifting away from on-premises to SaaS also showcases its economic value; Accor can now switch from a CAPEX-heavy model to a more efficient OPEX model.
Case in point: Infor SunSystems Cloud for F&B
Autogrill VFS F&B, a leading food and beverage provider in Vietnam, faced challenges with its legacy accounting system, which hindered their finance team's ability to integrate and streamline processes.
To address these limitations and future-proof their operations, Autogrill VFS F&B made the strategic decision to upgrade to Infor SunSystems Cloud to upkeep productivity and ensure long-term sustainable growth.
HubSpot is a customer relationship management (CRM) platform accessible through any common web browser. The platform provides a variety of tools for marketing, sales, and customer service purposes, helping businesses attract, convert, close, and grow better.
Benefits
HubSpot is an all-in-one platform, providing users with practically everything they need, from drafting emails to building landing pages and publishing blog articles or social media posts through an intuitive, user-friendly interface.
The platform embraces the Inbound Marketing methodologies, which emphasise attracting customers through engaging, valuable, and tailored content. HubSpot continuously introduces new features to accommodate clients’ needs. The platform can also easily scale and integrate with third-party vendors upon demand.
Case in point: HubSpot for Adventure Travel
Exodus is part of Travelopia, the world’s leading collection of experiential travel brands, which specialises in adventure travelling and welcomes thousands of travellers every year.
Exodus faced a detrimental issue: the manual lead nurturing process. The team used to rely on emails, spreadsheets, and documents to manage the entire customer cycle. Without a modern CRM solution, they had to manually export a CSV file from the booking system, clean, and segment the data before drafting email offers.
Today, prospects can search the Exodus website, subscribe to newsletters, call their Sales team, chat online, etc. within a few clicks of a button, and all information is securely stored in a centralised cloud database.
Targeted email campaigns can be created and sent within 5 minutes instead of 4 hours previously. This has saved the Exodus team tremendous time and effort while allowing them to gain a better view of their customers.
While traditional software once ruled business operations, the gear has shifted in favour of cloud-based solutions, specifically SaaS. Security remains one of the top priorities of both businesses and SaaS providers. Data protection measures, compliance frameworks, and disaster recovery plans will continue to be strengthened to ensure business continuity.
Before adopting and migrating to one, businesses need a well-drafted strategic plan detailing their specific needs, security requirements, and growth goals. This ensures the implementation goes smoothly and organisations get the most from the new SaaS solutions.
As a leader in software implementation who has a library of cloud business management solutions under its wings, TRG International can assist you on your cloud journey. Don’t know where to start? Check out our whitepaper on cloud migration below and learn more!
Sources:
1. https://www.omnius.so/blog/saas-industry-report-2024
2. https://www.techaheadcorp.com/blog/saas-vs-traditional-software-why-enterprises-are-making-the-switch/
3. https://www.omnius.so/blog/saas-industry-report-2024