This year, organizations have used 110 SaaS apps, marking an increase of 38% from 80 apps in 2020, according to Yahoo Finance. On 30th September, the leading SaaS management platform, BetterCloud, released the 2021 State of SaaSOps. The survey of over 500 IT and security experts reveals that the latest challenges in SaaS management and IT have kept the momentum going as digital transformation exploded in 2021.

The report also sheds light on SaaSOps automation, SaaS security files, and the future workplace. Other key SaaS data and app usage findings published in the report include the rate at which the use of SaaS apps continues to explode and how a surge in SaaS adoption brings about more challenges. There are many reasons why businesses should adopt new technologies, including SaaS.

However, Software as a Service (SaaS) poses several challenges, with the most notable being limited visibility into user data and activity. The second challenge would be managing app configurations consistently and understanding all SaaS apps within an organization.

Below are the key factors influencing SaaS adoption and the challenges it brings.

Availability Of Subscription-Based Services

Today, you can subscribe to almost anything, including readymade food, clothing, pet supplies, books, and even sports accessories.

While the subscription business model seems like a new trend, it has been in existence since the age of print publications and book clubs. Boosted by the popularity of streaming services like Spotify and Netflix, subscription services have become essential tools for retailers to grow their business.

Many benefits are linked to subscription business models, such as cost savings, convenience, enhanced billing strategy, and increased customer retention.

As subscription services become increasingly popular, the demand for SaaS apps also increases drastically. Since SaaS tools improve productivity while reducing costs, many entrepreneurs, especially retailers, invest in them to stay ahead of the competition.

SaaS Evolution

Software as a Service is an innovative technology that involves licensing and providing software online via a subscription-based model. This means you don’t need to purchase software on a disc for use on one computer.

Unlike traditional software installations and management, SaaS apps are cost-effective and require little to zero maintenance. In most cases, SaaS tools are installed and configured to the cloud directly, meaning you won’t experience compatibility issues during installations.

Additionally, you don’t have to worry about the cyber risk associated with managing high volumes of software licenses.


Reduced Software Costs

If you’re running a small business, SaaS can be beneficial in boosting operations within the organization.

Usually, Software as a Service is affordable, allowing you to acquire the most effective business tools well-established businesses use without much hassle. Subscribing to software as a service also guarantees low investment risks because you can cancel your subscription anytime. What’s more, you can develop a SaaS app tailored to your business needs at low costs.

There are many software development companies with the expertise to create apps that fit your business model perfectly. With many options to choose from, you can find a developer that meets your needs and budget. You can also leverage the services of SaaS application developers that offer subscription services. Such app developers allow monthly repayments based on pay-as-you-go service. They also commit time and resources to reduce your MVP or minimum viable product.

Professional SaaS app developers understand that maintaining quality at speed is an excellent way of protecting your budget.

More Strategic IT

In response to the coronavirus impact, the role of IT in business organizations has shifted from functional to strategic. Over the past decade, technology in business revolved around enhancing internal communications, improving business accuracy, and managing data systems. Companies also relied on IT to improve their marketing efforts through research and collecting accurate customer data.

Although IT’s role in the business setup hasn’t changed much, entrepreneurs and marketers now use technology more strategically.

Currently, business owners leverage the power of different technologies to drive innovation in the workplace to enhance the employee experience. Today’s business owners know that engaging employees is key to the growth and success of any venture. Therefore, they utilize the latest communication, collaboration, and project management apps to streamline business operations.

In fact, 76% of respondents in the 2021 State of SaaSOps, admit they’ll be more strategic with their IT efforts in the next twelve months.


SaaS Limitations

Like any other product in the market, SaaS has several limitations.

As software providers invest more in the SaaS model, many app users overlook the importance of license compliance and end up misusing the software.

Another drawback of using SaaS apps is limited customization. Ideally, you can have a SaaS tool developed to suit your business needs. However, the instant code that controls how other users use the app can’t be customized. You’re only allowed to personalize the software master data.

Adopting SaaS tools also increases security risks, meaning hardworking but negligent workers can lose essential data to hackers. SaaS brings about various risks like poor visibility in user activity and data. It also raises concerns regarding data security, license compliance, and software integration.

Final Word

The availability of subscription-based business models and the evolution of SaaS over the years are critical factors driving its popularity in modern business organizations.

Other key aspects influencing businesses to embrace SaaS include low software development costs and increased strategic IT practices.

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