Software as a Service (SaaS) is a type of startup that is becoming more popular because it makes life easier for its users.
Most of the time, traditional software is sold directly by the company that made it. The user will receive a license key that proves that they own the software. Any computer or laptop that meets the system requirements can install the software.
But since cloud computing came along, SaaS has made it a lot easier to buy and sell software. No longer do users have to install the software.
Because of this, SaaS startups have grown and gained a lot of users. But just like any other technology, SaaS has its pros and cons.
Also read: 5 Reasons Why Startup Businesses Can Grow Quickly
What is SaaS?
Before we can talk about the pros and cons of SaaS startups, we need to understand what they are. As was said above, SaaS is a service that lets you use software online without having to install it.
As a cloud-based app, the users don’t have to worry about the technical side of the service. They can use a browser to get to the service and sign in to their account. Users don’t need to install any software on their computer or laptop to use the service. As long as they have access to the internet, they can use it easily.
Also read: 7 Tips on Writing A Good Startup Business Plan
These are the characteristics of a SaaS
These are the characteristics of a SaaS (source: Freepik)
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Organized by The Main Server
The SaaS service makes things easy for its users by keeping everything on a single server. So, the users don’t have to take care of anything on their end.
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Accessible Through the Internet
One of the most important things about SaaS is that it can be accessed through the internet. Only when we connect to the internet can we use its services. This also means that the speed of the SaaS will depend a lot on how fast the user’s internet connection is.
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The Users Don’t Need to Do Any Update
Last but not least, people who use SaaS don’t have to update their software. The service will update itself on its own every so often.
Also read: 11 Factors That Cause Startup Failure
SaaS Strength And Weakness
From the above, it’s pretty easy to tell what a SaaS startup’s strengths and weaknesses are. But just to be sure, here are the pros and cons of SaaS.
SaaS Strengths
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1. Time efficient
SaaS saves users time because they don’t have to install anything. They also don’t have to worry about software damage because it will be taken care of remotely by the service provider.
It will surely make things easier for users and save them a lot of time.
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2. Cutting down on operational cost
Another great thing about SaaS that helps users a lot is that it can lower operational costs. For example, since users don’t have to own a server, they don’t have to pay for server maintenance.
With SaaS, it’s up to the user to decide how to use the service. Users can easily stop using the service if they don’t find it useful. On the other hand, users will lose money if they use traditional software that doesn’t help them.
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3. Less storage usage
The database for traditional software will need space to be stored. Users must give the software a certain amount of space to keep using it.
With SaaS, users don’t have to worry about storage space because of cloud computing. The storage will be taken care of by the SaaS service provider.
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4. Easy access
The best thing about SaaS is how easy it is to use. Since SaaS software can be accessed through a browser, users can easily use their desktop, laptop, or cell phone browser to use it.
As a result, access to user data is also simple. Users can get to their data from any device, anywhere, and at any time.
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5. Simplify the data analytic process
Lastly, the centralized operational system makes it possible for users to get analytics about how well they do with the software they use.
For example, companies or users who use a content management system (CMS) may get detailed analytics about the performance of the content and other relevant metrics.
Information that was given to the user right away So, it will be easier for the user to choose the right plan and strategy based on their goals.
Also read: 9 Type of Startups in Indonesia
SaaS Weaknesses
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1. Data Security
SaaS has a lot of good points, but it also has some bad points. The security of data is one of them.
In this age of technology, it’s important to keep data safe. Even though the number of people using SaaS services keeps going up, security problems keep coming up.
To avoid this, the user needs to understand the profile of the SaaS service provider and choose the ones that guarantee the safety of their data.
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2. Internet usage
This should be obvious. SaaS depends a lot on being connected to the internet, which can be both a strength and a weakness. Users with slow internet connections might not be able to use the SaaS service.
Since cloud computing is a big part of SaaS, the user needs a good internet connection to access and use the service. Before connecting to the SaaS service, users must make sure their internet is stable and fast.
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3. Limited features
Even if a SaaS service has a good reputation on the market, it doesn’t always have all the features it should have. Before you sign up for their service, you should know what features it has. This will help you make sure you choose the right SaaS provider.
Users sometimes sign up for more than one SaaS service provider to meet their needs.
SaaS Startup in Indonesia and South East Asia
SaaS Startup in Indonesia and South East Asia (source: Freepik)
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ESB
The goal of the SaaS service PT Esensi Solusi Buana (ESB) is to solve the problem of system integration in the food and beverage industry. Gunawan Woen, a man with a passion for food, started ESB in 2016. At first, ESB was made as a system to plan a company’s suppliers and resources. But in 2018, ESB grew even more, and they had the chance to help one of the biggest restaurant companies in Indonesia solve a number of problems.
From that point on, ESB started to shift its focus to making community-based software for restaurants.
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Credibook
Credibook is a digital accounting platform and financial tracker for businesses. It is made by PT Ruang Dagang Internasional. Gabriel Frans, CEO and co-founder of Credibook, says that the company’s success is due to the fact that it is different from other financial education platforms and focuses on services for sellers.
Credibook received its Series A funding in April 2022. They got about $8.1 million (USD) or Rp 116 trillion.
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ZUZU Hospitality
Next, we have ZUZU Hospitality, a SaaS startup based in Singapore with branches in Indonesia, Vietnam, and other places in South East Asia. At first, ZUZU’s business was focused on budget hotels (B2C), but now they offer solutions for managing hotel operation systems (B2B).
According to dailysocial.id, JG DEV led a group of investors who gave Rp 158 trillion ($10.9 million) to ZUZU. Visor Ventures was the next group to give money.
That is what SaaS is, as well as its benefits and drawbacks, as well as examples of SaaS startups in Indonesia and Southeast Asia.
