SaaS for Enterprise: Advantages and Disadvantages of Use

SaaS enterprise

Are you on the threshold of moving to the next level, from the SMB market to targeting enterprise customers? You must put systems in place to deal with the increased workload. Software as a Service (SaaS) is a system in which software applications are delivered to clients. The application is uploaded to the cloud infrastructure and accessed by clients over the internet. SaaS for enterprise works by pairing the functionality needed for running a growing business efficiently and with ease. 

Enterprise SaaS provides on-demand infrastructure and development environments. It also allows organizations to enjoy the benefits of enhanced productivity and low ownership costs of enterprise software. 

Undoubtedly, Enterprise SaaS provides a range of benefits for any business; it is certainly not flawless. A few downsides exist that businesses need to know about. Before taking a call on using Enterprise SaaS for your business, these pitfalls and their effects need careful consideration. 

Let’s start on a positive note and begin with the benefits of SaaS. 

Advantages of SaaS

Easy Implementation

SaaS is one of the most accessible systems to install in your business processes. As it is pre-existing, there is no delay in the deployment and development of SaaS. Moreover, the setup process is simple, less time-consuming, and user-friendly. Certainly, faster implementation is one of the reasons why businesses with SaaS can make quicker decisions.

Cost Effectiveness

Choosing SaaS can save you loads of money for many reasons. SaaS, unlike other systems, have no upfront costs involved. There are no extra charges for purchase and installation. Upgrades and maintenance are not a factor. The apps download for free with hardly any maintenance ultimately involved.

The pay-as-you-go model of SaaS makes it easy for businesses to cut costs. They will be billed only for the software. No resources are wasted on unused licensing. For small businesses, SaaS is definitely a boon as they can use high-powered but low-priced software. The subscription-based model of SaaS platforms eliminates the financial risk associated with high-end software systems.


SaaS is accessible all the time and can run 24/7 on any system with access to the internet. Businesses with well-defined internet connectivity can enjoy uninterrupted access to SaaS. Accessibility is not a major issue with software systems today, as most devices are equipped with internet capability. However, SaaS is more accessible compared to other types of software installation.

Smooth Scalability

Is your business looking to expand? SaaS is the best option. SaaS comes with unmatched flexibility. Since the software is externally hosted, companies can change their usage plan based on their needs without informing the providers in advance. 

Fulfill your business requirements by scaling up SaaS anytime. No requirements exist for you to change your existing subscription plan. Also, achieve scalability by expanding or updating your existing subscription plan.

High Reliability

Reliability is a huge advantage businesses can enjoy by adopting a SaaS system. All your data is present within the data center of the cloud service provider. If the system goes down or in the event of any disaster, the software will keep going regardless of the location. All you need is a stable internet connection and assured data reliability. 

Easy to Upgrade

Updating business software systems can be a hassling process for most businesses. This is not the case with SaaS. Users need not worry about updates with SaaS systems. The burden or the responsibility of upgrades is with the vendor. They will provide you with software and hardware updates needed to manage your growing business easily. There is no need to purchase any upgrade package. Users have access to the latest versions of software with minimal effort.

Disadvantages of SaaS

Less Than Impressive Performance

Compared to applications that run on local machines, SaaS is a shade slower. This happens because of the increase in latency in SaaS. To compensate for this limitation in speed, businesses may have to invest in a fast internet connection. However, there are tools available in SaaS to monitor the performance level of individual apps.

Security Concerns

In SaaS systems, all the data related to business operations are stored within the vendor’s server. Consequently, vendors are likely to have easy access to the business data. So, this can lead to confidentiality issues, unauthorized access, and identity theft. Businesses must take care and have measures in place to protect their data. Indeed, they may have to employ external resources to safeguard sensitive and confidential business information.

Poor Control

Poor control is one of the most significant drawbacks of enterprise SaaS. Unlike conventional software systems, the control of applications does not remain with businesses. Providers handle the whole process of software management. Businesses have to depend on a third party to manage their critical business applications.

Connectivity Issues

As SaaS is a web-based solution, your system can go down if your internet connectivity is not stable and reliable. Also, it is imperative that you have a constant internet connection to enjoy the features of SaaS uninterruptedly. While organizations are unlikely to experience connectivity issues in the modern world, those businesses in remote locations with poor network coverage or internet services can have a tough time with SaaS. 

Data Transfer Hassles

It needs noted that all software service providers are not reliable. When repeated software failure occurs, and you want to change the service provider, it’s not easy. Transferring data is a bit cumbersome in SaaS systems. You must have as much data backup as possible to avoid such problems.

Unimpressive Application Support

Businesses using the SaaS system have increased significantly in recent times. However, there are applications without a hosted platform. This can become a huge problem for businesses using multiple software solutions. The only solution they can use is to host applications on-site.


The use of cloud computing solutions is increasing as organizations keep designing and developing new technologies. It is expected that as technology evolves, so will SaaS models. SaaS is already a major success. So, going ahead, businesses can expect this platform to evolve. Moreover, the evolved model will have more advantages and fewer disadvantages, ensuring better value for money.