HomeBlogBlogEnterprise SaaS: Why Businesses Are Adopting Cloud Solutions

Enterprise SaaS: Why Businesses Are Adopting Cloud Solutions

Software as a service (SaaS) has become the dominant model for business software over the past decade. 

Once seen as an application delivery model suited mainly for small teams and simple collaboration tools, SaaS has now expanded across the enterprise. 

Today, even the most complex business applications are being delivered via the cloud on a subscription basis.

So what is driving this mass adoption of enterprise SaaS solutions? Cost, flexibility, and innovation.

As a SaaS link building company, here we will cover everything about Enterprise SaaS.

What is Enterprise SaaS?

enterprise SaaS

Enterprise SaaS refers to software-as-a-service solutions designed for large, complex business needs. 

Whereas the early days of SaaS focused primarily on small team collaboration tools and single-function apps, advanced SaaS platforms now deliver robust capabilities across all major business areas including financials, human resources, customer relationship management, supply chain management and more. 

Today’s leading enterprise SaaS solutions leverage the cloud to help worldwide employees efficiently access the systems and data they require in real-time, from any location, using any device. 

Companies can take advantage of enterprise-grade performance, security protections and global infrastructures they once had to build themselves with on-premise software. By switching from legacy to modern SaaS alternatives focused on mobile experiences and data insights, large organizations can drive higher productivity, faster innovation and closer customer connections across borders in a highly cost-efficient model based on subscriptions rather than expensive perpetual licenses. 

Enterprise SaaS represents the future for virtually all business software.

The Benefits of Enterprise SaaS

There are three overarching reasons why large enterprises are rapidly shifting from legacy on-premise software to modern SaaS solutions: 1) Cost Savings, 2) Flexibility, and 3) Innovation.

Cost Savings

With SaaS, costs are based on actual software usage rather than buying assets. This eliminates the need for massive upfront investments in licenses, infrastructure and implementation services required by on-premise solutions.

By paying for software via flexible, per-user subscriptions, usage can scale up and down as business needs change.

SaaS also reduces the need for large internal IT teams to manage and patch infrastructure. Business units gain control over functional budgets. In total, enterprises find that rearchitecting systems in the cloud reduces both capital expenditures as well as ongoing support costs.

Flexibility

Cloud-based systems offer tremendous flexibility that on-premise software can’t match. Enterprise SaaS allows usage to scale up or down dynamically, enabling access for new workers or new divisions in days without waiting months for hardware and software installations. This agility allows companies to pivot faster based on market changes.

The auto-updating nature of SaaS also means companies stay on the latest release without painful upgrades. No need to redesign workflows when processes change — users can modify configurations themselves. With data accessible from any linked application, SaaS knocks down barriers between teams and exposes functionality through open APIs. This overall software flexibility unlocks business agility.

Innovation

SaaS vendors dedicate massive R&D budgets towards continuous release of cutting-edge features using the latest technologies. Since everyone runs on the same version in the cloud, new capabilities instantly reach the entire customer base. On the client side, companies no longer need dedicated developers to customize platforms.

Citizen developers inside the business can build their own solutions using intuitive no-code tools. Line-of-business managers take ownership over selecting applications from vibrant SaaS marketplaces.

This environment of innovation not only generates cost efficiencies, but more importantly allows enterprises to keep innovating services and business models to stay ahead of the disruption curve in their respective industries.

In total, the benefits around cost, flexibility, and innovation add up to SaaS leveling the playing field — giving companies both large and small access to world-class software that drives meaningful business outcomes.

Key SaaS Categories for Enterprise

Several enterprise software segments have seen particularly strong SaaS solution penetration, including:

CRM

this pictures define what CRM is

Customer Relationship Management (CRM) software was one of the first enterprise categories to embrace a cloud delivery model. Salesforce was founded in 1999 with the vision of taking entrenched on-premise CRM and making it accessible for companies of any size via the cloud.

By eliminating expensive hardware requirements and implementation projects, Salesforce introduced pay-as-you-go affordability, rapid deployment and constant innovation through quarterly updates. Enterprise CRM functionality like sales force automation, marketing campaign tracking, customer service case management and more could now be managed in the cloud.

After initial skepticism that mission-critical applications could live in the public cloud, Salesforce won over enterprises and kicked off the SaaS revolution. The CRM giant proved the viability of multi-tenant architectures to handle huge data sets securely while remaining highly customizable.

Today, IDC estimates over 80% of new CRM software purchases are now cloud-based. By focusing exclusively on on-demand delivery, constant innovation and an amazing user experience, Salesforce changed enterprise software expectations. It showed how aligning complex workflows to evolving customer needs could make businesses more agile. Now companies demand cloud-based systems across nearly every function to fuel digital transformation.

HCM

this picture defines what hcm is

Human Capital Management (HCM) software was historically complex and expensive for large enterprises to implement on-premise. Moving HR systems like payroll, talent management and more to the cloud has unleashed innovation in this market.

Led by vendors like Workday and SuccessFactors (owned by SAP), today’s enterprise-grade HCM SaaS platforms are transforming how HR teams manage complex workforce challenges at scale, including:

  • Onboarding – Streamline new hire paperwork and setup
  • Payroll – Automate paycheck calculation for global workforces
  • Benefits Enrollment – Simplify open enrollment self-service
  • Compliance – Stay up to date with regional labor regulations
  • Learning – Assign and track skills-based online training
  • Performance Reviews – Connect company and employee goals
  • Internal Mobility – Enable employees to apply for internal openings
  • Diversity & Inclusion – Set and monitor representation goals

With real-time workforce analytics also available, HR leaders now have unprecedented visibility and tools to attract, retain and optimize human capital. Employees also benefit from modern self-service experiences and mobile accessibility.

By moving such critical systems to the cloud instead of clunky legacy software, HR is elevating its strategic role as a business driver for the wider enterprise. The innovation coming from today’s HCM SaaS leaders will only accelerate in the years ahead.

Collaboration

collaboration tools

Collaboration tools have seen massive growth within enterprises as remote and distributed teams become more common. SaaS services like Microsoft Office 365, Google Workspace, Slack, Asana and many others have become vital for enabling employees to communicate, share files, assign tasks, run meetings, manage projects and more regardless of physical location.

Cloud collaboration platforms provide secure access from anywhere, on any device. This supports flexible and remote work environments. Powerful analytics also give insight into how teams are interacting and where bottlenecks may exist, helping leaders increase productivity.

Some key benefits enterprise see from SaaS collaboration solutions:

  • Facilitate communication across departments and geographies in real-time
  • Enable remote meetings with screen sharing for presentations
  • Centralize documents and files so everyone has access
  • Streamline project management with workflow automation
  • Integrate with other SaaS apps for smoother data sharing
  • Scale up usage quickly without reliance on IT teams

As the workforce trends towards more flexibility, collaboration SaaS will continue seeing rapid enterprise adoption. The tools not only fuel productivity, but also reflect modern distributed org structures. They break down silos between teams to promote enterprise agility.

Considerations for Building an Enterprise SaaS Product

Developing a successful Enterprise SaaS product requires careful planning and consideration across various dimensions. Here’s a framework to guide you:

Market and Customer:

  • Target Audience: Clearly define your ideal customer profile. Consider industry, size, pain points, and decision-making processes.
  • Market Validation: Conduct thorough market research to validate your idea’s need and competitive landscape.

Product and Features:

  • Value Proposition: Articulate the core value proposition of your product. What unique problem does it solve for your target customers?
  • Feature Prioritization: Focus on building features that directly address your target audience’s needs and differentiate your product from competitors.
  • Scalability and Security: Design your product to accommodate future growth and prioritize robust security measures to meet enterprise standards.
  • Integration: Consider potential integrations with existing enterprise systems and platforms for seamless data flow.
  • User Experience: Design an intuitive and user-friendly interface for smooth adoption and enhanced user satisfaction.

Business Model and Pricing:

  • Pricing Strategy: Define a pricing model that aligns with your value proposition and customer segment. Consider subscription tiers, usage-based billing, or other options.
  • Customer Acquisition and Retention: Develop strategies for acquiring new customers and retaining existing ones, including sales, marketing, and customer support initiatives.

Technology and Development:

  • Technology Stack: Choose a technology stack that ensures security, scalability, and performance while considering future needs and integration possibilities.
  • Development Methodology: Select a development methodology (e.g., Agile) that aligns with your team structure and promotes iterative improvement.
  • Data Management: Establish secure and compliant data management practices to ensure data privacy and integrity.

Security and Compliance:

  • Security Standards: Implement industry-standard security protocols and adhere to relevant compliance regulations (e.g., HIPAA, GDPR).
  • Data Privacy: Prioritize data protection and transparency regarding data collection, storage, and usage.

Support and Onboarding:

  • Customer Support: Offer robust customer support options, including self-service resources, live chat, and dedicated account managers.
  • Onboarding and Training: Provide comprehensive onboarding processes and training materials to ensure smooth user adoption.

Continuous Improvement:

  • Feedback Mechanisms: Gather and analyze customer feedback to understand their needs and continuously improve your product.
  • Product Roadmap: Develop a clear product roadmap with features planned for future releases based on feedback and market trends.

How to sell SaaS to enterprises?

selling saas to enterprises

Selling SaaS to enterprises demands a shift from quick pitches to fostering long-term trust. Understand their complex buying committees, tailor your value proposition to each stakeholder, and address concerns like security and customization. 

Earn trust through consultative selling, quantifiable ROI, and industry expertise. Offer extended trials, POCs, flexible deployment, and robust support to mitigate risk. Remember, it’s a marathon, not a sprint. By patiently building trust and addressing their unique needs, you’ll secure deals that last.

5 Examples of Enterprise SaaS

Here are 5 popular examples of Enterprise SaaS solutions:

  1. Salesforce: The world’s leading CRM platform helps manage sales, marketing, commerce, service and more on one unified interface. Salesforce offers multiple SaaS products for enterprises like Sales Cloud, Service Cloud, Platform, Marketing Cloud and Slack.
  1. Workday: A leading finance, HR, planning and analytics solution for enterprises to unify people operations on the cloud. Workday Human Capital Management (HCM), Financial Management, Student, Planning and Analytics are some offerings.
  1. Adobe Experience Cloud: An end-to-end enterprise platform across marketing, advertising, analytics and commerce. Key tools include Adobe Marketing Cloud, Advertising Cloud, Analytics Cloud and Commerce Cloud—all powered by Adobe Sensei AI.
  1. SAP S/4HANA: SAP’s latest ERP business suite delivers intelligent technologies and best practices for finance, supply chain, R&D, sales and more. Key capabilities offered are ML, AI, digital assistants, integrated analytics and real-time reporting on one cloud platform.
  1. Microsoft Dynamics 365: An intelligent business applications suite unifying CRM and ERP capabilities for enterprises on Microsoft cloud. Main applications are Dynamics 365 Sales, Customer Service, Finance, Supply Chain Management, Project Operations, Marketing and Human Resources.

These are just a few major examples among the ever-expanding Enterprise SaaS landscape catering to practically every business need today – whether Collaboration Tools, Business Intelligence, Security, Procurement or more. Leading analysts predict almost all enterprise applications to transition to SaaS in the future.

The Future is Enterprise SaaS

Given the tremendous advantages around cost, flexibility, and innovation, it is clear enterprise SaaS adoption will continue grow rapidly in coming years. 

Virtually every business is embracing cloud solutions to unlock productivity and insights. The model is no longer seen as an option solely for smaller, simpler needs – it has hit the mainstream. Any software purchases in the enterprise space should have SaaS delivery as a core consideration. Companies that fail to take advantage of the cloud transition risk falling behind the competition.

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