![\"What](\"https:\/\/www.techjockey.com\/blog\/wp-content\/uploads\/2022\/07\/What-Is-SaaS-banner-image-1024x536.jpg\")
<\/figure><\/div>\n\n\n<\/span>What Is SaaS or Software as a Service?<\/span><\/h2>\n\n\n\nSoftware as a Service (SaaS), also known as cloud app services, allows data and applications to be accessed through the internet avia the subscription model. So, this means users don\u2019t have to install or download anything. They are free to use it directly through the web browser through subscription. SaaS model is basically about purchasing software<\/a> services where payments are made usually monthly, quarterly or annually.<\/p>\n\n\n\nNot only this, but you also won\u2019t even have to think about maintenance and upgrades, which ultimately helps you concentrate on key elements of your business.<\/p>\n\n\n\n
SaaS is also popular as web-based software. Among other cloud options, it has indeed taken the lead owing to its many benefits such as being affordable, scalable, and flexible. If we go by figures, Software as a Service popularity has no sign of decline anytime in the future. The global SaaS market is expected to reach a market size of $185.5 billion by 2024 as per a report by KBV research.<\/p>\n\n\n\n
Suggested Read: Best Software as a Service Tools for Startups and SMBs<\/a><\/strong><\/p>\n\n\n\n<\/span>Why Has SaaS Applications Become So Popular?<\/span><\/h2>\n\n\n\n![\"saas](\"https:\/\/www.techjockey.com\/blog\/wp-content\/uploads\/2022\/07\/saas-application.png\")
<\/figure><\/div>\n\n\nThere are a lot of factors that have led to the popularity of SaaS model. Some of the vital ones are as follows:<\/p>\n\n\n\n
\n- Increase in the adoption of smartphones<\/li>\n\n\n\n
- Growing web usage<\/li>\n\n\n\n
- Easily accessible from anywhere over the internet<\/li>\n\n\n\n
- Digital technology standardization<\/li>\n\n\n\n
- Easy to update and analyze data<\/li>\n\n\n\n
- Ideal for businesses who cannot develop their own software apps<\/li>\n<\/ul>\n\n\n\n
<\/span>Popular SaaS Business Models in Terms of Pricing<\/span><\/h2>\n\n\n\n![\"Popular](\"https:\/\/www.techjockey.com\/blog\/wp-content\/uploads\/2022\/07\/Popular-SaaS-Business-Models-in-Terms-of-Pricing.jpg\")
<\/figure><\/div>\n\n\nSaaS business models involve selling cloud based software by paying a subscription fee at a monthly or annual basis to get access to the software.<\/p>\n\n\n\n
Some of the proven ways in which you can evaluate your SaaS software pricing are as follows:<\/p>\n\n\n\n
\n- Freemium<\/strong><\/li>\n<\/ul>\n\n\n\n
Freemium is a popular SaaS marketing business model wherein platforms offer free access to some of their software features. The idea of the model is to attract users and fulfill their basic needs while incentivizing them to shift over to the premium version!<\/p>\n\n\n\n
\n- Flat pricing<\/strong><\/li>\n<\/ul>\n\n\n\n
Flat based pricing model simply charges users a single price for a single service for access to their software. In the Software as a Service industry, this pricing model works best for businesses who offer a simple product with a limited set of features.<\/p>\n\n\n\n
\n- Per user pricing<\/strong><\/li>\n<\/ul>\n\n\n\n
As the name suggests, the per user pricing model allows businesses to charge per user often per month. This type of pricing model is popular across all major software tools as it is simple to understand and implement.<\/p>\n\n\n\n
\n- Pay for what you use<\/strong><\/li>\n<\/ul>\n\n\n\n
Also referred to as usage-based pricing, pay as you go model is where users are charged basis their usage of the product. The charge varies based on factors such as per call, per transaction, per API etc.<\/p>\n\n\n\n
\n- Per feature pricing<\/strong><\/li>\n<\/ul>\n\n\n\n
For software that comes packed with features, it may be best to go for this pricing model. You can build tiers based on the impressive features wherein the highest tier usually offers more functionality. Your customers can scale when they wish to extend the functionality.<\/p>\n\n\n\n
Suggested Read: What is Software aa a Service in Cloud Computing and How It Works<\/a><\/strong><\/p>\n\n\n\n<\/span>Different Types of SaaS Solutions<\/span><\/h2>\n\n\n\nThe SaaS industry is rapidly expanding, and the SaaS model can be broadly classified into vertical and horizontal Software as a Service companies. Vertical Software as a Service is targeted towards a particular niche or specific industry while horizontal Software as a Service model covers a wide range of the market through multiple industries.<\/p>\n\n\n\n
<\/span>What is Vertical SaaS?<\/span><\/h3>\n\n\n\nVertical SaaS is a type of solution that caters to specific industries such as healthcare or retail, insurance, etc. Since it is purpose built for niche sectors, it is often developed by people who have expertise in a specific industry. Moreover, the vertical SaaS model has a shorter market size. Some popular Vertical SaaS examples include BioIQ and Guidewire.<\/p>\n\n\n\n
<\/span>What is Horizontal Saas?<\/span><\/h3>\n\n\n\nHorizontal SaaS is designed for a wide range of users across businesses and industries. It solves common problems in a business and includes social media management platforms<\/a>, attendance tracking, HRM tools, CRMs, and more. Some prominent horizontal SaaS examples include QuickBooks, Slack and Salesforce.<\/p>\n\n\n\n<\/span>Vertical SaaS Vs Horizontal SaaS<\/span><\/h2>\n\n\n\n![\"Vertical](\"https:\/\/www.techjockey.com\/blog\/wp-content\/uploads\/2022\/07\/Vertical-SaaS-Vs-Horizontal-SaaS.jpg\")
<\/figure><\/div>\n\n\nNow that we know what exactly vertical and horizontal SaaS solutions are, lets quickly know the difference between both. Vertical Software as a Service is one that addresses the need of one industry type while horizontal SaaS is built to be used across industries.<\/p>\n\n\n\n
Horizontal SaaS is generally easier to use as it can be applied to multiple industries while vertical SaaS focuses on solving specific problems in a particular industry. As a result, vertical Software as a Service offers industry specific modules based on the user\u2019s needs.<\/p>\n\n\n\n
When you hear Software as a Service, there is a good chance that you might have heard about horizontal SaaS as it can by used by almost any industry.<\/p>\n\n\n\n
Not only this, but you also won\u2019t even have to think about maintenance and upgrades, which ultimately helps you concentrate on key elements of your business.<\/p>\n\n\n\n
SaaS is also popular as web-based software. Among other cloud options, it has indeed taken the lead owing to its many benefits such as being affordable, scalable, and flexible. If we go by figures, Software as a Service popularity has no sign of decline anytime in the future. The global SaaS market is expected to reach a market size of $185.5 billion by 2024 as per a report by KBV research.<\/p>\n\n\n\n
Suggested Read: Best Software as a Service Tools for Startups and SMBs<\/a><\/strong><\/p>\n\n\n\n There are a lot of factors that have led to the popularity of SaaS model. Some of the vital ones are as follows:<\/p>\n\n\n\n SaaS business models involve selling cloud based software by paying a subscription fee at a monthly or annual basis to get access to the software.<\/p>\n\n\n\n Some of the proven ways in which you can evaluate your SaaS software pricing are as follows:<\/p>\n\n\n\n Freemium is a popular SaaS marketing business model wherein platforms offer free access to some of their software features. The idea of the model is to attract users and fulfill their basic needs while incentivizing them to shift over to the premium version!<\/p>\n\n\n\n Flat based pricing model simply charges users a single price for a single service for access to their software. In the Software as a Service industry, this pricing model works best for businesses who offer a simple product with a limited set of features.<\/p>\n\n\n\n As the name suggests, the per user pricing model allows businesses to charge per user often per month. This type of pricing model is popular across all major software tools as it is simple to understand and implement.<\/p>\n\n\n\n Also referred to as usage-based pricing, pay as you go model is where users are charged basis their usage of the product. The charge varies based on factors such as per call, per transaction, per API etc.<\/p>\n\n\n\n For software that comes packed with features, it may be best to go for this pricing model. You can build tiers based on the impressive features wherein the highest tier usually offers more functionality. Your customers can scale when they wish to extend the functionality.<\/p>\n\n\n\n Suggested Read: What is Software aa a Service in Cloud Computing and How It Works<\/a><\/strong><\/p>\n\n\n\n The SaaS industry is rapidly expanding, and the SaaS model can be broadly classified into vertical and horizontal Software as a Service companies. Vertical Software as a Service is targeted towards a particular niche or specific industry while horizontal Software as a Service model covers a wide range of the market through multiple industries.<\/p>\n\n\n\n Vertical SaaS is a type of solution that caters to specific industries such as healthcare or retail, insurance, etc. Since it is purpose built for niche sectors, it is often developed by people who have expertise in a specific industry. Moreover, the vertical SaaS model has a shorter market size. Some popular Vertical SaaS examples include BioIQ and Guidewire.<\/p>\n\n\n\n Horizontal SaaS is designed for a wide range of users across businesses and industries. It solves common problems in a business and includes social media management platforms<\/a>, attendance tracking, HRM tools, CRMs, and more. Some prominent horizontal SaaS examples include QuickBooks, Slack and Salesforce.<\/p>\n\n\n\n Now that we know what exactly vertical and horizontal SaaS solutions are, lets quickly know the difference between both. Vertical Software as a Service is one that addresses the need of one industry type while horizontal SaaS is built to be used across industries.<\/p>\n\n\n\n Horizontal SaaS is generally easier to use as it can be applied to multiple industries while vertical SaaS focuses on solving specific problems in a particular industry. As a result, vertical Software as a Service offers industry specific modules based on the user\u2019s needs.<\/p>\n\n\n\n When you hear Software as a Service, there is a good chance that you might have heard about horizontal SaaS as it can by used by almost any industry.<\/p>\n\n\n\n<\/span>Why Has SaaS Applications Become So Popular?<\/span><\/h2>\n\n\n
<\/figure><\/div>\n\n\n\n
<\/span>Popular SaaS Business Models in Terms of Pricing<\/span><\/h2>\n\n\n
<\/figure><\/div>\n\n\n\n
\n
\n
\n
\n
<\/span>Different Types of SaaS Solutions<\/span><\/h2>\n\n\n\n
<\/span>What is Vertical SaaS?<\/span><\/h3>\n\n\n\n
<\/span>What is Horizontal Saas?<\/span><\/h3>\n\n\n\n
<\/span>Vertical SaaS Vs Horizontal SaaS<\/span><\/h2>\n\n\n
<\/figure><\/div>\n\n\n
![\"Salesforce\"](\"https:\/\/www.techjockey.com\/blog\/wp-content\/uploads\/2022\/07\/Salesforce.jpg\")
<\/figure><\/div>\n\n\n![\"G](\"https:\/\/www.techjockey.com\/blog\/wp-content\/uploads\/2022\/07\/G-Suite.jpg\")
<\/figure><\/div>\n\n\n![\"Hubspot\"](\"https:\/\/www.techjockey.com\/blog\/wp-content\/uploads\/2022\/07\/Hubspot.jpg\")
<\/figure><\/div>\n\n\n![\"Netflix\"](\"https:\/\/www.techjockey.com\/blog\/wp-content\/uploads\/2022\/07\/Netflix.jpg\")
<\/figure><\/div>\n\n\n![\"Office](\"https:\/\/www.techjockey.com\/blog\/wp-content\/uploads\/2022\/07\/Office-365.jpg\")
<\/figure><\/div>\n\n\n![\"DocuSign\"](\"https:\/\/www.techjockey.com\/blog\/wp-content\/uploads\/2022\/07\/DocuSign.jpg\")
<\/figure><\/div>\n\n\n![\"clickup](\"https:\/\/www.techjockey.com\/blog\/wp-content\/uploads\/2022\/07\/clickup-as-a-saas-platform.jpg\")
<\/figure><\/div>\n\n\n![\"Key](\"https:\/\/www.techjockey.com\/blog\/wp-content\/uploads\/2022\/07\/Key-SaaS-Industry-Trends.jpg\")
<\/figure><\/div>\n\n\n