What is SaaS Business Model?

Software as a service(SaaS) business model is very popular among computer science students. In this article, we will discuss about the whole business model.

SaaS Business Model

As per the name of the mode, these businesses are based on software. Also, we don’t need to create or innovate a new product to start a business.

Generally, this business model is used by computer science students because it is totally based on software.

What we have to do is find any problem and try to solve it using technology. Problems can be bigger or smaller but if we focus on a niche area, then it can become a big business.

Here are some of the best examples of the SaaS business model.

UBER

We all know Uber for its cab booking service. Uber doesn’t own any car and still, the company is very successful.

They found the problem that hiring a cab for a transportation is difficult and the most needed thing in metro cities.

Uber started focusing on solving this problem using an app. This means they are providing a service and the company take commission from the drivers.

That’s how their business model works.

OYO ROOMS

Same as Uber, Oyo follows the same business model. The company is not owning any hotel rooms.

They tie up with other hotels which have a good location and take commision from the hotel owner. They created an app which provides all the details about nearest available OYO room.

That’s how OYO works.

Also read: 5 Best Extensions for Every Computer Science Student

Other companies with SaaS Model

• Airbnb
• Amazon AWS
• Urbanclap
• Ola
• Mircosoft Office
• Google Apps
• Practo

Pros of SaaS Business Model

• For starting the business, we don’t need inventories.
• It takes less amount of investment to start.
• Large opportunity to grow a business.
• It takes less manpower.
• Less infrastructure cost.

Cons of SaaS Business Model

• Security issue can occur.
• Server issue can occur.
• Integration with other software is difficult.

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