Top five advantages of software as a service (SaaS)

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Software as a service (SaaS) is an alternative to the standard software installation in the business environment (traditional model) where a user has to build the server, install the application and configure it.

In SaaS, the user does not pay for the software itself. Instead, it works like a rental. They have the authorization to use it for a period of time and pay for the software that they are using.

(Related: What is software as a service (SaaS)?)

In my opinion, the top five SaaS advantages are as follows:

Top Advantages of Software as a Service (SaaS)1.Reduced time to benefit

Different from the traditional model, in SaaS the software (application) is already installed and configured. The user has the advantage of provisioning the server for an instance in cloud and in a couple hours they can have the application ready for use. This reduces the time spent in installation and configuration, and can reduce the issues that  can get in the way of  the software deployment.

2. Lower costs

SaaS has a differential regarding costs since it usually resides in a shared or multitenant environment where the hardware and software license costs are low compared with the traditional model.

Another advantage is that the customer base can be increased since it allows small and medium  businesses (SMB) to use a software that otherwise they would not use due to the high cost of license.

Maintenance costs are reduced as well, since the SaaS provider owns the environment and it is split among all customers that use that solution.

3. Scalability and integration

Usually, SaaS solutions reside in cloud environments that are scalable and have integration with other SaaS offerings. Comparing with the traditional model, users do not have to buy another server or software. They only need to enable a new SaaS offering and, in terms of server capacity planning, the SaaS provider will own that.

4. New releases (upgrades)

SaaS providers upgrade the solution and it becomes available for their customers. Costs and effort associated with upgrades and new releases are lower than the traditional model that usually forces the user to buy an upgrade package and install it, or pay for specialized services to get the environment upgraded.

5. Easy to use and perform proof of concepts

SaaS offerings are easy to use since they already come with best practices and samples inside it. Users can do proof of concepts and test the software functionality or a new release feature in advance. Also, they can have more than one instance with different versions and do a smooth migration. Even for large environments, users can use SaaS offerings to test the software before buy it.

IBM has embraced the advantages of SaaS and has built a portfolio of over 100 SaaS applications which solve critical business needs for our clients. Visit to learn more.

Are there any advantages to using SaaS that you would add to this list? Please connect with me on Twitter (@MarcosSylos) and let’s continue the discussion.

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Erin Maccabe

Indeed an informative post! Brief yet compact. In addition to what you listed above, going on SaaS means: Rapid implementation, flexibility and being within reach. There are also SaaS support team/experts (e.g. Lirik – to support SaaS users all the way with regard to SaaS queries and concerns in turn letting you maximize your SaaS user experience.


James Calley

All true. There’s no doubt the world is moving in that direction as it’s just so much more efficient. And cost-effective! There’s this great infographic on that too


Richa Gangwani

Dave Anderson

I have been hearing a lot about different businesses switching to the SAAS financial cloud services as opposed to using the old hardware programs that were very costly. Like you mentioned, the cloud option is a lot less expensive because you don’t have to pay for the hardware and it is through the cloud so maintenance is a lot less expensive. Looking at it from a financial standpoint it seems like the SAAS cloud service would definitely be superior to older models.

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