A Helpful Guide to SaaS and How It Works

Summary
The maximization of SaaS creates an extra advantage to every company’s operational management. A cost-effective solution to obtain more advanced and enhanced security, the software extends the ease of use and mobility within every brand’s reach. 

Understanding the tool’s efficiency helps brands leverage a valuable and high-tech investment. With the ability to deliver viable services, SaaS minimizes cost while improving productivity and convenience in general. The power to integrate and scale up gives more resources and opportunities for businesses to boost and largely optimize.

There are different types of service models for cloud-based technology distributed via the Internet, bringing about the “as a service” solutions. Software as a service is one of the most popular ones since approximately 24% of all enterprise workloads are SaaS accounts.

Are you exploring SaaS? You are in the right place! This article can help you find out what SaaS is, what it can do for you, its advantages, examples, and the affiliate programs you can join in 2021.

What is SaaS?

Besides IaaS and PaaS, another cloud computing element is a software as a service or SaaS. It is a software distribution model wherein the third-party provider or servers’ applications and end-users can access the software over the Internet. Some common examples are the following:

  • Calendaring
  • Email
  • Office Tools (such as Microsoft Office 365)

The SaaS application development eradicates organizations’ need to install and run applications on their computers or data centers, turning the infrastructure investment null.

Hence, it means that there will be no calling IT experts to download software for every computer in your office or worrying about updating the software on each computer unit.

Let me share a simple example. If you go out to eat, you choose a restaurant, menu, and pay to take delight in the ready-made food. On the other hand, the restaurant handles rent, cooking, cleaning, services, and food cost.

SaaS as a cloud computing component is the same because it guarantees ready-to-use solutions for specific businesses’ needs. Further, the other two elements of cloud computing are PaaS and IaaS. Let us discuss them briefly in the next part.

SAAS cloud computing

The Distinction Between SaaS, PaaS, and IaaS

SaaS, PaaS, and IaaS are three ways to describe how you can utilize the cloud services for your business. Here are their key differences:

  • IaaS: IaaS is a cloud computing element that stands for infrastructure as a service. Additionally, IaaS permits organizations to buy resources as needed and on-demand rather than purchase the hardware outright. Finally, IaaS is the cloud-based services or pay-as-you-go for services like:

a. Networking

b. Storage

c. Virtualization

SAAS infrastructure
  • PaaS: PaaS is a cloud computing component, which means a platform as a service. Between the three, PaaS is more similar to SaaS than IaaS. Also, platform as a service (PaaS) is the software and hardware tools available over the Internet. Some examples of PaaS include the following:

a. Windows Azure

b. Apache Stratos

c. Magento Commerce Cloud

d. OpenShift

  • SaaS: It is an available software over a third-party provider via the Internet made possible with an internet connection. You may acquire the cloud services program by paying for a subscription, but other providers have a flat rate.

What is a SaaS Model and its Characteristics

An excellent method to understand the SaaS model, aside from PaaS and IaaS, is by thinking of a bank that protects each customer’s privacy while giving security and reliable services.

A bank’s customers utilize similar financial security systems and technology without getting worked up about anybody accessing their personal data or information without authorization. A bank meets the characteristics of the SaaS model, such as:

1.Better Access

Enhanced access to data from any networked device simultaneously, making it easier to deal with privileges, check data usage, and ensure everybody sees similar data or information at the same moment.

2.Easy Customization

Each user can conveniently customize applications to match their business processes without affecting the usual infrastructure. Due to SaaS creation, customizations are unique to users or companies and always preserved through upgrades.

It also means that SaaS providers can create upgrades more often, with lower adoption costs, less customer risk, and more security.

3.Multitenant Architecture

A multitenant architecture refers to all applications and users sharing a joint infrastructure and centrally maintained codebase. Because SaaS vendor clients are all on similar infrastructure and codebase, the vendor can:

  • Innovate more swiftly
  • Save valuable enhancement period previously used in maintaining many versions of the outdated code.

SAAS network architecture

4.Software as a Service Trends

Organizations are evolving SaaS integration platforms or SIPs for constructing the supplementary SaaS application. SaaS goes beyond standalone software functionality to be a platform for mission-critical applications.

Saugatuck Technology, a consulting firm, refers to this as the “third wave” in software adoption.

5.SaaS Controls the Consumer Web

Have you heard of My Yahoo! or Amazon.com? If you know these, you are familiar with the typical SaaS applications’ web browser interface.

Through the SaaS model, you can customize with point-and-click ease. It makes traditional software for businesses hopelessly old-fashioned because it is time-consuming to update.

How Does It Work?

Most software vendors or providers offer software in the form of installation files, and the administrators or users load it into their hardware. However, organizations now shifted from owning hardware to using virtual machines in many data centers.

It relieves the Saas providers from several responsibilities. But, they still take responsibility for the device, the software’s installation, and maintenance.

You may access software as a service on a servers’ platform wherein the administrator or user now has no connection to the hardware and typically does not even worry about the software updates. It is the software or SaaS provider that takes care of these things instead of the organizations using SaaS.

The Aim of SaaS

Usually, the SaaS providers offer a high percentage of “up” time, in which the organization using such trusted software for security can concentrate on their business and become more productive. Here are several things that SaaS aims to do:

  • reduce the cost to run operations using SaaS applications
  • decrease the time and cost of deployment
  • guarantee known cost for the time frame of a contract
  • eliminate some of the risks of an operation

SAAS cost

The Usage of SaaS

After discussing what SaaS is, its characteristics, and goals, you may be wondering about the applications using this software program or when you can use it. Carry on reading as we go further with the software as a service.

When to Use SaaS

In 2018, Deloitte conducted a global CIO survey and concluded that nearly all leading enterprise software developments incorporate SaaS into their strategy. Also, over 70% of CIOs cited agility and scalability as the motivation to support and acquire cloud services.

SaaS may be the best alternative in many situations, which includes:

  • Applications that need both mobile and web browser access
  • Applications that are not often necessary like tax software
  • When you need the application to be significantly scalable
  • Short-term enterprise or ventures that need affordable, quick, and easy collaboration
  • Small businesses or startups needing to launch eCommerce instantly and do not have enough time for software or servers’ issues

Where to Use SaaS

Organizations can incorporate other software with SaaS applications using application programming interfaces or APIs. For instance, companies can write their software tools and utilize the SaaS provider’s APIs to integrate the SaaS offering tools.

Since software delivery is possible through an internet connection, many IT specialists, business applications’ users, and C-level executives utilize SaaS applications. SaaS can develop any enterprise software applications, such as:

  • CAD
  • CRM
  • DBMS
  • GIS
  • HARM
  • MIS
  • PO, and more

Why You Need to Utilize SaaS

SAAS benefits

The Saas applications continue to obtain more grip and start moving across the globe, growing exponentially. Companies of all sizes embrace SaaS as the next best option for on-premise software and hardware development.

According to Forbes, the enterprise SaaS software market is now generating $20 billion of revenues quarterly for software vendors or providers. It is a number that continually increases by 32% per year.

With these growing numbers, here are a few reasons why you need to consider SaaS software for your business applications from SaaS providers or a vendor:

  • Flexibility
  • Scalability
  • Updated Features and Services
  • Time and Performance Management

The Advantages of SaaS

As mentioned earlier, SaaS eliminates the need for organizations to install and run applications on their device or data centers. It results in abolishing hardware acquisition expenses, provisioning, maintenance, software licensing, installation, and support.

For other Saas benefits, you may refer to the following:

Accessibility and Persistence

Since SaaS software delivery is over the Internet, users can access it from any Internet-abled location and device.

Automatic Updates

Instead of buying new software, customers can depend on a SaaS provider or vendor to instantly perform updates and reinforce management. Because of SaaS, there will be reductions of a further burden on the companies’ in-house IT staff.

Flexible Payments

Many customers subscribe to a SaaS offering rather than getting the software for installations or the additional equipment to support it. Generally, you can pay for this service’s subscription fee monthly through a pay-as-you-go model.

The transitioning cost to a returning operating expense permits most businesses to work out better and more foreseeable budgeting. The users can also stop SaaS offerings at any time to terminate those recurring costs.

SAAS expenses

Scalable Utilization

Cloud services, such as SaaS, provide high vertical scalability. It guarantees customers the choice to access more, or fewer, available on-demand features or services.

Is Netflix a SaaS?

Yes, Netflix is a type of SaaS applications company that sells software so that people can watch licensed videos on demand through a device or web. They follow a subscription-based model wherein the user selects a plan and pays a fixed subscription fee to Netflix monthly or yearly.

This subscription-based characteristic is what Netflix and SaaS have in common as well. It is proving to be better for both customers and businesses. However, you need to know that SaaS is not a new concept or enterprise.

Since the 1960s, SaaS is a business model used by businesses and companies. Back then, there were already many available computers, but utilizing computers and technology was also expensive.

This reality made it impossible for some companies other than a large enterprise to get one. Previously, they call this enterprise a time-sharing system.

What are Examples of SaaS Applications?

SaaS products have changed the way businesses work nowadays. The time-consuming, traditional software era begins to ease into its retirement stage, and we are moving towards a new generation of SaaS applications hosted on the cloud. Here are some examples of SaaS businesses:

Google G Suite

It is the cloud service version of Microsoft Office wherein there is a set of collaboration and productivity tools, cloud computing, software, and product-based applications on the SaaS cloud. This example includes the following:

  • Docs
  • Calendar
  • Gmail
  • Hangouts
HubSpot

HubSpot is a CRM or a customer relationship management system that usually deals with the sales process, turning someone from a lead to a prospect and then lastly to a client.

It permits you to manage all information and data from social media to tracking contacts within the content management. Any data or information related to the relationship with the business gets overseen with this SaaS application.

When you are doing any outbound sales or lead generation for your business, then acquiring a customer relationship management or CRM service provider to deal with all of your leads makes it easier to remember details and close the sale.

Dropbox

One of the first customer-grade cloud storage solutions on the web is Dropbox. It has different pricing tiers, starting from Dropbox’s free plan for individuals and 2TB or more space offerings for businesses. Here is how you can utilize Dropbox:

  • A convenient way to save your photos and files
  • Sync your photos and files among your devices (regardless of the OS you are running)
  • Recover deleted data
  • Has encryption options with advanced user permission management

You can do all those things mentioned above without investing in expensive software and infrastructure out there. A SaaS provider can surely give you the right benefits.

Amazon Prime Video

Amazon Prime, a paid subscription service SaaS product, is something offered by Amazon. This software SaaS-based service gives access to inaccessible features and services or costs extra for the usual Amazon customer.

Moreover, the Amazon Prime subscription fee SaaS service consists of free one or two-day delivery (depending on your location), streaming ad-free music, TV shows, movies, and more benefits.

Shopify

Building an online store can be challenging and may take outside expertise from designers and developers to make it happen. Shopify eventually saw this opportunity to make a platform wherein you can set up an eCommerce store and start selling products in only several hours.

Setting up your Shopify store is easy and uncomplicated since you already have the site, online catalog, shopping cart, and payment integration into one platform. It offers customization options through its library of both paid and free plugins.

The Top 10 Saas Affiliate Programs to Join in 2021

When many businesses offer affiliate programs, what makes a SaaS company or service provider stand out is that substantial revenue drives the cloud-based solutions.

A service SaaS solution can give you the maximum earnings for a similar effort level if you promote a business. So, to help you begin, here are the top 10 affiliate programs offered by companies:

1. Tribe

The Tribe is a modern and fully customizable online cloud community platform constructed with a collection of social media best practices to help creators and users launch branded online communities. 

The communities built with this application may become public or private in terms of their accessibility. Additionally, you can incorporate Tribe into a product or web-based site as a stand-alone community platform.

Why do you need this Software as a Service?

The Tribe affiliate program is the perfect program for community managers, digital marketers, and social media experts. 

This platform allows users to discuss their community and provides extra functionalities that let them ask questions, make pools, follow people, organize events, share content, and comment on discussions. 

Regarding the Tribe Affiliate Program commission rates, you can refer to the following:

  • Receive 15% of the payment when ten customers will subscribe and renew their account.
  • Gain 20% of the pay when up to fifty customers subscribe and continue their Tribe account.
  • Receive 25% of the payment if over fifty customers subscribe and renew their account.

2. Leadpages

LeadPages is a well-known company or platform that is widely utilized by over 40,000 users all over the world. It is one of the adequate software or tools for every digital marketer out there. 

This cloud-based affiliate program helps small business owners connect with customers or users, gather leads, and close sales. You can easily create new landing pages, web-based sites, pop-ups, alert bars, and more. 

Why do you need this Software as a Service?

LeadPages is the platform that serves as one of the best ways to grow a business online. The Leadpages Affiliate Program offers an incredible 50% recurring commission to their affiliates. They can provide you with the commission as long as your referral stays as a LeadPages Customer. 

This program has a direct deposit payment, and you receive the commission payout on the 6th of the month, after two months of the original sale date. 

Once you join their LeadPages Affiliate Partner Program, you can earn money and help thousands of entrepreneurs to build a sustainable business online at the same time.

3. Pipedrive

This application is a sales-focused cloud client relationship tool that many teams of all sizes prefer using. Having 90,000+ paying customers across 155 countries, Pipedrive captures many sales teams or users because of their impactful yet straightforward CRM systems design that prioritizes usability. 

Why do you need this Software as a Service?

Pipedrive lets you access their platform from a mobile application, and then you can analyze the performance. Aside from this, they offer four different plans that range from $7 to $79 every month. 

You can receive a 33% commission in the first year once a referral purchases any of Pipedrive’s plans. Additionally, you can obtain additional training regarding their products and access to their creative banners and logos. 

4. Freshdesk

Freshdesk is one of the cloud-based helpdesk systems that offer robust solutions for your services. This application merges conversation from chat, email, phone, social, and web servers,  serving as support in helping businesses or users resolve problems among their channels effortlessly. 

Why do you need this Software as a Service?

Many companies across the globe use Freshdesk to deliver excellent customer service and experience. They can streamline the processes and give multi-channel support. 

Because of this, you can target many businesses out there for referrals. Also, the software helps customer agents to be more productive through game mechanics and automation. 

This platform offers a freemium pricing plan with distinct configurations to fit different company sizes and requirements. 

5. Freshbooks

Freshbooks Accounting is a cloud-based small business software that guarantees business decisions are under real business insights and data. This application gives ongoing support to many users or companies through:

  • setting enough tax period aside
  • learning and computing the costs to run a business
  • determining if there is enough cash flow to hire new people
  • confidently predict the earnings for a new venture

Why do you need this Software as a Service?

Joining the FreshBooks referral program allows you to earn a $5 commission for every free trial sign-up and $55 for every paid subscriber. There is also a type of VIP offer wherein the top performer can unlock the bonus commission. 

Moreover, the program has a direct deposit payment method, and the schedule for the pay is through ShareASale. The minimum requirement threshold commission for the payouts is $50.

For the minimum affiliate cookie life, there are 120 days. It means that the visitors who click your affiliate link obtain 120 days to start with the free trial. 

6. SurveySparrow

It is an end to end experience management cloud-based platform that merges client and employee experience tools, such as:

  • Chat
  • Classic
  • NPS
  • Offline
  • 360 Degree Surveys

Why do you need this Software as a Service?

The conversational UI allows your surveys to deliver a chat-like experience and develops survey completion rates by 40%. The SurveySparrow affiliate program inspires its promoters by helping them increase their sales. 

The company gives a 25% commission for each successful referral, and it is even effortless to join the program and gain the unique affiliate link to begin selling. 

Besides making it hassle-free to be in the affiliate program, SurveySparrow also helps the salespeople outspread the word regarding their services.

7. SurveyMonkey

SurveyMonkey exhibits all the necessary tools for you to make substantial, professional surveys conveniently.

This platform offers a way to turn feedback into action. It also transforms the people’s words into certainty and security by driving innovation and growth to millions of people globally.

Why do you need this Software as a Service?

You can utilize SurveyMonkey, an online survey tool, to drive your business forward and capture the opinions and comments of the people who matter most to your business. 

When you join SurveyMonkey Apply, you can earn $500 each time an eligible referral signs up for a SurveyMonkey Apply subscription.

8. Canva

This web-based platform enables small to large-scale organizations to make customizable prints, graphs, and presentations slide with professional templates, layouts, voice icons, frames, and more.

The Canva affiliate program allows its affiliate to suggest their services to potential customers, and in return, they give the fellow a commission when the referral makes a purchase.

Why do you need this Software as a Service?

Canva has a reasonable commission rate, which is $25 per product bought by the referral, and it is a site that has excellent potential for conversion rates. 

Furthermore, the Canva affiliate program provides various options for the promotions of their affiliate link. You may promote it through social media, website, SMS, paid ads, emails, and more. Also, they have timely payments, which is much beneficial on your part as an affiliate.

9. Adobe Creative Cloud

This video editing tool helps create 2D animations, film editing, video stories, motion graphics, audio recording or mixing, and more. 

With Adobe generating a revenue capacity of $9.03 billion, it is easy to look at why Adobe’s affiliate program is an excellent opportunity for many aspiring bloggers. 

Why do you need this Software as a Service?

This platform gives you access to a comprehensive option of ready-to-publish text links and marketing banners. Also, you will get up-to-date information from Adobe when you sign up for this affiliate program.

Moreover, there are regular and exclusive promotions for additional income. Regarding the commission rate, monthly subscriptions have 85% of the first month.

10. Teachable

Teachable is an all-in-one platform that can help you make and sell courses online. This platform helps coaches and creators build course websites and manage the messaging, security of the student data, branding, and pricing all in one place.

Why do you need this Software as a Service?

Teachable makes it easy and convenient whether you are a beginner or you already have tech skills. You can place all your hard-earned knowledge from your mind to a great course that teaches others.

The platform has over 100,000 creators who have sold more than $500 million in coaching and courses. As an affiliate, you may promote those programs or classes and obtain 30% Lifetime Commissions on your referrals. You can already sign up for this affiliate program in less than a minute.

Conclusion

The Internet plays a significant part in our generation, whether in our day-to-day application, security, or business. Therefore, you can observe that software as a service or SaaS is practically synonymous with online business management and ownership.

Most online and web-based businesses already use some cloud-based systems to manage their business operations. Others also consider IaaS and PaaS, depending on their business’s nature.

When you use service SaaS solutions, it transforms your business for the new age, gives you better benefits than traditional perpetually licensed business applications, and provides a competitive advantage among your competitors.

See: 11 Top SEO Best Practices Your Blog Shouldn’t Miss in 2020

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