Risks and Benefits of SaaS Implementation

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Risks and Benefits of SaaS Implementation

In the last 7 years, the SaaS industry has increased by more than 500%. Right now, SaaS is considered the most dominant, most flexible method of software delivery, eclipsing all previous solutions. The model is tailor-made for large and small international teams and, specifically, teams that work from various locations.

Unfortunately, SaaS products also come with their fair share of issues. Most notably, you have very little control regarding what’s happening on the other side. Although an unusual thing for the SaaS industry, there’s always a chance that a provider will misuse your personal data. Client companies might also encounter issues pertaining to available features.

Whatever the case, users should take their time choosing software. While SaaS products are in a constant state of flux, you still need to choose a provider and solution you trust.

SaaS Benefits

Here are the biggest benefits of the SaaS model, according to experts at Cognitive Cloud (more information here):

Fast implementation

One of the reasons why SaaS has become so popular is because of its fast implementation. Back in the day, it took companies approximately 57 hours to introduce a new software solution. With SaaS, the expected implementation time has dropped down to 7 hours (even less for simple tools).

And while this might not seem that important, as you’ll only implement software once, it can be crucial when close to certain deadliness. Being able to quickly introduce new digital solutions can also be vital for companies that use number programs.

Lower Initial Costs

By the end of 2026, it’s expected that SaaS solutions will account for 45% of the average company budget. Although these figures might sound staggering, these programs actually make significant savings for brands.

The best thing about the SaaS method is that it allows brands to save money on expensive infrastructure and hardware. Companies can also save money on IT employees because, nowadays, most brands need skeleton crews to maintain their systems. We also can’t neglect the fact that SaaS is often cheaper than traditional software, which has to be bought every year.

You can also save money by subscribing to SaaS instead of spending money to develop internal solutions. While custom-made software is generally fantastic for businesses, as it provides niche features, it also becomes obsolete quite fast. This would force you to develop new software and systems leading to extra costs.


Digital accessibility has been a hot topic in the last few years. However, in this particular case, we’re referring to the ease of access from different locations and devices.

Software-as-a-service doesn’t require a slow implementation; all you need is a username, password, and Internet to access one of these platforms. The best thing yet, the service is available from anywhere across the globe, making it perfect for outsourcing and global teams.

Minimal Involvement

As the provider is managing everything on the back end, you don’t have to worry about security, updates, or maintenance. SaaS brands are responsible for providing a great experience, and given the stiff market competition, most companies are doing their best to introduce new and improved features.

The only complaint we might have is that you don’t know what the company is going to do next with the platform. A provider might remove a feature that was vital for your business or might introduce bugs with a new update. Luckily, this rarely happens as most SaaS providers are in-tune with their clientele and their needs.


According to 70% of CIOs, scalability is the main reason why companies have switched (or are switching) to SaaS solutions. Providers commonly have several plans that would allow clients to choose the right option according to their business needs.

These plans are generally geared toward single users, small companies, and large enterprises. So, if you’re a single entrepreneur or leading a small team, you can easily upgrade to a more expensive plan as your business starts booming.

That way, you won’t have to switch to another platform which, in turn, means that your daily operations won’t stop and that you won’t lose data.

SaaS drawbacks

Generally speaking, there aren’t that many issues with the SaaS model to prevent users from buying these tools. Nevertheless, there are a few things you need to keep in mind:

No Control

Having no control over the platform is both a blessing and a curse. While users don’t have to worry about maintenance and can receive real-time updates without having to install anything, they’re still at the mercy of a provider.

Most notably, your daily operations can be abruptly interrupted if a service goes out of business. This is something that happened with Nirvanix. In this particular case, the provider had to shut down its service seemingly overnight, forcing all its users to transfer their data and look for new solutions.

The loss of control might lead to some other issues, like the previously mentioned inability to affect features. A company can eliminate functions or change the layout with the next update, causing a mess for users.

Performance Issues

While accessing the software via the Internet is fantastic in most cases, there are also situations where it will get you in a pickle. Most notably, employees won’t be able to use the platform in case of a power outage or internet loss.

But it doesn’t stop there. You’re also at the whim of providers’ servers, and any issue they might encounter will also affect you. So, if someone has servers in a faraway country, it might also affect how your platform is working. Issues such as this are especially noticeable if a provider’s IT team is much slower than yours in resolving technical difficulties.

Data Breaches

Data indicates that an average company invests between 7% and 20% on its cybersecurity solutions. And while SaaS brands also spend a lot of money to improve their security measures, they might be less interested in this particular aspect of the business. Because of that, you should always choose providers that put data security at the top of their list.

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