SaaS – Software as a Service, concept is becoming rapidly popular among all industries.

IT professionals will not take much time to understand the term SaaS (Software as a service) and the concept is becoming highly in demand. The popularity of SaaS model can be estimated for an encouraging stats that SaaS (Software as a Service) space in Hyderabad may hit the $25 million mark this year. With more than 450 startups offering broad business functions like human resource management, finance and accounting and marketing for industry verticals such as retail (both offline and online), logistics, healthcare, education, aviation, telecom, real estate, agriculture and manufacturing, the user base for affordable SaaS products among the companies providing such services is growing year-on-year.

India has become a favourite destination for companies looking to buy SaaS products. Start-ups working in this space also have a good customer base. Instead of having an on premise team to design and manage a software, smaller companies, businesses and start-ups have now started buying SaaS products on a subscription basis. Some verticals that have produced successful SaaS start-ups include Customer Relationship Management tools, Enterprise Resource Planning software systems and education-related software.

According to a recent report by global start-up intelligence platform Tracxn, shift to a SaaS model from an on premise software model, can be attributed to the conveniences offered by SaaS providers-where companies do not have to pay an up-front licence fee and spend on inhouse infrastructure as well as teams to maintain these.

The shift to a SaaS model happened over the past few years, where companies realized end-to-end on-premise software management is cumbersome. Using services of a SaaS provider also cuts costs for smaller companies and SaaS providers charge an affordable monthly fee. Even bigger firms are not shying away from using SaaS products now.

Setting a IT division, resourcing it with various resources like infrastructure, human resource, and other funding becomes an extra time and resources consuming task for any organization irrespective of its size. This is the reason behind most of the businesses are now preferring SaaS platform to reduce IT cost and focus on their prime business.

With the more industries and businesses automating and enabling themselves IT proficient, success prospects of SaaS concept will become higher.