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SaaS is a term that you have probably heard before, but what does it mean? SaaS stands for software as a service. It is a model of software distribution where the provider makes applications available to customers over the internet. The customer pays for use of the software, and the provider manages the infrastructure and security. This type of arrangement has become increasingly popular among eCommerce businesses in recent years because it offers many advantages over traditional software installation and maintenance models.
History of SaaS
The term “software as a service” was first coined by computer scientist John McCarthy in an article published in Forbes magazine in 1996. He defined it as “a software service that is available from the network without the need for installation on the customer’s own computers.” The concept of SaaS gained traction in the early 2000s with the advent of web-based applications such as Salesforce.com, which allowed businesses to access customer relationship management (CRM) software via the internet.
The popularity of SaaS has grown exponentially in recent years, with the global market expected to reach $700 billion by 2030. This growth is being driven by the rise of cloud computing and the increasing adoption of SAAS solutions by small and medium-sized businesses.
Advantages of Utilizing SAAS
Some of the advantages of SaaS for eCommerce businesses include:
- Reduced upfront costs: With traditional software, businesses have to pay for the license, installation, and maintenance. With SaaS, these costs are spread out over time and are often included in the monthly subscription fee.
- Increased flexibility: Businesses can scale up or down their use of a SaaS application as needed, without having to make a long-term commitment.
- Improved security: SaaS providers typically have robust security measures in place to protect customer data.
- Automatic updates: With traditional software, businesses have to install updates and patches manually. With SaaS, these updates are typically pushed out automatically, ensuring that customers always have the latest version of the software.
Examples of SaaS for eCommerce
Some examples of SaaS applications that can be used by eCommerce businesses include:
- BigCommerce: A platform for creating and managing online stores.
- Shipstation: A web-based shipping solution that helps businesses save time and money on order fulfillment.
- ReCharge: A recurring billing platform that helps businesses automate the process of charging customers on a regular basis.
As you can see, there are many different types of SaaS applications available to eCommerce businesses. The best way to determine which one is right for your business is to consult with an experienced eCommerce development team.
At EYStudios, we have a team of eCommerce experts who can help you select and implement the right SaaS solution for your business. Contact us today to learn more.