The SaaS Revolution is Here: What B2B eCommerce Businesses Need to Know
In 1999, a small company named Salesforce introduced a novel way of selling its customer relationship management (CRM) software to the business-to-business (B2B) sector. They hoped that internet-delivered software would be available at all hours. SaaS stands for “software as a service,” The company marketed its subscription-based software to other companies. In short, it was eCommerce development that helped the business scale.
Hundreds of software companies have followed this concept since then. Can B2B eCommerce vendors, including factories and warehouses, benefit from SaaS products? SaaS will be defined, and the most prominent B2B SaaS software solutions will be discussed in this post. We will also examine the most productive SaaS techniques for B2B vendors while debating the pros and cons of SaaS-based B2B software.
The Definition of a Business-to-Business Software as a Service Firm
Whenever business-to-business SaaS is discussed, both the distribution method and the licensing method are discussed. In the business-to-business SaaS model, the vendor creates, hosts, and sells the application to its clientele online. SaaS is the antithesis of on-premises systems, where users purchase licenses outright and set up applications on their hardware.
Like other types of goods, there is a distinction between business-to-consumer and business-to-business software as a service. Software as a service is marketed to consumers as items for amusement, financial management, or work. Many companies now use B2B SaaS technologies for project management, customer service, CRM, ERP, e-commerce, PIM, accounting, and communication.
Businesses-to-business (B2B) SaaS providers place a high priority on their clients’ success when using their products. As a result, they see less churn and enjoy more customer loyalty as a result of the success of their client’s businesses thanks to the use of their software. The software company also benefits from having loyal clients who are more inclined to recommend the company’s offerings to others.
However, how widespread are B2B SaaS offerings and the SaaS business model? Take the following into account:
- Gartner forecasts that by 2021, the global revenue from software as a service will have increased by 23%, reaching over $270 billion. The pace of expansion is anticipated to quicken even more by 2022’s close.
- Although large companies anticipate spending more on IT than small and medium-sized businesses, the percentage of their technology expenditures on managed services is much higher for the former (21% vs. 14%).
- Public cloud investment is highest in the industrial sector ($19.7 billion), followed by the professional services sector ($18.1 billion) and the financial services sector ($16.7 billion). The B2B SaaS sector, which deals with the most data, may be home to the most active investors.
- 92% of businesses that Flexera polled said they had a multi-cloud strategy using several cloud service providers. Using this method, firms may leave their mission-critical apps with one B2B SaaS provider while keeping their private data with another.
Multiple categories of SaaS programs exist. Most, however, may be classified as one of three types of SaaS:
Software-as-a-service (SaaS) packages assist businesses with a particular function, such as customer care or marketing. Products like Zendesk and Hubspot are good examples of this kind of software.
Second, the efficiency and effectiveness of teamwork are enhanced by using collaborative software hosted in the cloud. These systems facilitate teamwork in various ways, from instant messaging and video conferencing to administrative tasks and files. You can see this in the prevalence of collaborative apps like Asana, Zoom, and Paper.
Third, technical software as a service apps provide resources for controlling and enhancing technical procedures and eCommerce development. As an open-source, fast application development platform, OroPlatform exemplifies technological SaaS.
When it comes to business-to-business transactions, why is SaaS advantageous?
Compared to conventional licensing and deployment methods, SaaS B2B solutions provide a more affordable choice for organizations, are simple to set up, and are readily available. The following are some of the reasons why businesses and organizations use SaaS applications:
The cost of setting up the service and continuing to use it each month is often far lower than purchasing hardware and employing a staff of IT specialists. Also, it frees up the IT staff who would otherwise be responsible for maintaining these systems and updating or fixing them.
Remittances may be adjusted to fit your budget
Customers of the software as a service (SaaS) model pay a subscription fee on a recurring monthly or annual basis instead of an upfront cost. They may quickly Terminate service and save money. The result is more accurate budgeting and improved cost management for enterprises.
Quick and simple to use
Since a B2B SaaS solution can be accessed using a web browser, it can be used on any device running any operating system. This is helpful for companies of any size because of the widespread availability of internet connectivity in metropolitan areas.
Programmable upkeep and modification
The seller of business-to-business software as a service platform will take care of applying any necessary updates. There will be little impact on operations, and IT departments won’t have to worry about compatibility or downtime, thanks to these changes.
Identifying the Best Business-to-Business Software as a Service Company.
Pay close attention to items that fulfill your specific company goals and regulatory and security standards.
Learn the vendor’s storage policies and how they deal with private information before signing any contracts for SaaS. Inquire about their software integration capabilities, compliance standards, and how they can adapt to your company’s needs.
When assessing SaaS-based B2B software or eCommerce development, it’s crucial to bear in mind the following factors:
- This product satisfies all applicable regulations.
Because of events like those involving Edward Snowden and his disclosures, as well as the data privacy policies of firms like Facebook, data privacy has emerged as a primary concern for government authorities. The General Data Protection Regulation (GDPR) of the European Union and the Health Insurance Portability and Accountability Act (HIPAA) of the United States impose additional compliance obligations on both SaaS providers and their clients.
- It guarantees the privacy and security of stored information.
Malicious hackers are increasingly targeting B2B companies’ operations, supply chains, and customer data. The potential for data breaches grows as businesses increase their reliance on SaaS solutions, particularly those built on multi-tenant architecture. With a multi-tenant architecture, there is less data separation across databases, making it easier for hackers to exploit security flaws.
- It has powerful integration features.
As modern B2B companies rely on hundreds of integrations, SaaS solutions need to integrate with their current systems in a timely and straightforward manner. Because of this, it is more important for eCommerce development providers to address the concerns of a wide range of end users. If your demands are likely to change often, it’s best to work with a SaaS provider that offers flexible integration with other platforms through an application programming interface (API).
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