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    Home » SaaS Models Before Launching A Startup

    SaaS Models Before Launching A Startup

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    SaaS Models Before Launching A Startup
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    Dreaming of starting your own startup? Making a dream come true and developing an application for a startup is not so easy. First, you need to arm yourself with an innovative idea and the right business model. If everything is not so simple with the idea – you need to explore the market, study competitors and look for investments, then everything is easier with business models. In this article, let’s talk about SaaS, one of the most popular business models.

    What Is SaaS?

    SaaS (Software As a Service) is a subscription model for licensing a product. Most often, this is a cloud solution, i.e., located on servers on the Internet. Products that need to be installed on physical media are no longer in vogue – you can also access the necessary software via the Internet. Specializes in this digital product agency Fireart. 

    Benefits Of SaaS Services

    We have compiled a list of reasons why cloud services and the SaaS model are cool.

    Physical Media is Not Needed

    You can avoid spending money on software support with hardware since you can not install, configure and run the program on physical media.

    SaaS application doesn’t care how much RAM is on the user’s computer and what operating system he uses. If you can access the browser from the device, this is already enough to use the cloud service.

    Plus, there is no need to store files on physical media, which means they will never be lost.

    Cross-Platform

    The application will work on both PCs and tablets and smartphones, so you don’t need to develop multiple products. 

    This is true for those who work remotely. During the COVID-19 pandemic, many companies faced this problem: employees could not use corporate applications on their home devices. If these companies were using SaaS solutions, they wouldn’t have this problem.

    No Piracy

    SaaS applications are almost impossible to steal. The final product is immediately on the cloud, and not in the hands of the user. You have to pay to use the service because you simply won’t get access.

    Previously, users often installed pirated software, because buying a license hit the pocket hard. With a SaaS model, your service can be made available to more users – it’s much easier to pay a small subscription fee than to pay a large amount once.

    Real-Time Updates

    SaaS users always have the latest version of the product. When the product has been updated and there are any problems, the supplier will immediately react and fix it, since they are responsible for the update and you do not need to do anything.

    The creators of local software receive the main profit from the initial sales of licenses, so support is paid less attention. In the long run, it is more profitable for the user to pay for a SaaS solution.

    Examples Of Successful SaaS Startups

    Sales Force

    Salesforce is a cloud-based CRM system, access to which is provided exclusively by subscription. Salesforce literally came up with the SaaS model. At the time the company was founded, cloud technologies were not yet so popular, and many developers were skeptical about them. Now Salesforce is the market leader in CRM systems, and their revenue is growing annually by more than 20%.

    Google Services

    Google cloud services are gaining popularity every day. To comfortably use these services, it is enough to install the Google Chrome browser and start Gmail mail.

    Slack

    Slack is a corporate messenger that can be accessed through a browser. The service appeared in 2014 and quickly replaced Skype and email due to its functionality and reasonable price – a standard subscription costs $6-8 per user. Slack now has over 2.3 million daily users.

    Dropbox

    Dropbox is file hosting. Access to files hosted on the hosting, users can get from any device. Dropbox works on the Freemium model: a user can create a free account with a limited amount of free space, and a paid subscription is required to increase the amount.

    Amazon Web Services

    AWS is the most widely used cloud platform and provides cloud storage services, cloud databases, cloud computing, and product development environment. In 2019, AWS revenue was $35.03 billion. In 2020, Amazon’s net income was $470 billion.

    Figma

    Figma is a cloud service for designers. Allows several people to work together on one project in real time – all files are stored in the cloud and are always available to any team member from any device. For individual users, this tool is free, while there are subscription plans for companies.

    Conclusion

    Now that you know what the SaaS model is and the basics of this business, you can start developing an MVP. With the help of MVP, you will test your idea, spending a minimum of money and time. It remains only to find a reliable contractor – as we have said, look at the portfolio, experience, and reviews.

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    Mark Rodriguez

    Mark Rodriguez is a news blogger who has a passion for writing. He loves to share his thoughts on current events and offer his perspective on the world around him. He is always looking for new ways to engage with his readers and provide them with valuable information.

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