If you’re running a business, you’ve probably heard the term “Software as a Service” (SaaS). But what exactly is it, and how can it help your business grow? Simply put, SaaS is a way to access software online instead of installing and maintaining it on your own servers or computers. It’s flexible, scalable, and designed to adapt to the fast-paced needs of modern businesses.
But the benefits go far beyond convenience. SaaS can reduce costs, increase efficiency, and give your team the tools to focus on what matters most — serving your customers.
Whether you’re considering SaaS for the first time or looking to expand your use of it, this blog will help you understand its value and how it can set your retail business up for success.
What is SaaS?
SaaS, or Software as a Service, is a cloud-based software delivery model where applications are hosted by a provider and accessed via the internet. Unlike traditional software that requires installation on individual devices or servers, SaaS platforms run entirely online. Think of SaaS as renting a fully equipped, ready-to-use workspace instead of building one from scratch.
The difference between SaaS and on-premises
According to a recent state of the cloud report, one of the biggest challenges companies face when switching to SaaS is figuring out how the costs compare to on-premises solutions. Sure, on-prem might look cheaper at first with its one-time hardware and software fees, but once you add in the cost of servers, storage, upgrades, maintenance, and everything in between, the expenses start piling up fast. In fact, Harvard Business Review notes that SaaS adoption has skyrocketed because of its often lower-priced subscriptions, which help trim overall costs.
Other reasons why retailers and other types of businesses are increasingly preferring SaaS over on-premises include:
Simplified software management
Since you don’t need to buy or maintain any hardware, middleware or software, you can gain access to sophisticated enterprise applications, such as ERP and CRM, in a much more affordable way. It’s a great option for organizations that don’t have the resources to handle complex infrastructure and software themselves.
Reduced cost of ownership
SaaS lightens your IT budget by eliminating the need to maintain expensive infrastructure. You only pay for what you use, spread costs over time with a subscription, and enjoy built-in support and upgrades. It’s a smarter, more flexible way to manage your IT spend while lowering your total cost of ownership.
Top-tier security and compliance
With SaaS, security isn’t your problem to solve. Providers, like Microsoft Azure, deliver advanced protection and 24/7 monitoring , so you can rest easy without investing in costly security measures or worrying about meeting regulatory standards on your own.
Faster deployment times
Deploying on-premises systems involves lengthy setup processes, including hardware installation and configuration. SaaS solutions are ready to use almost immediately after signup, enabling businesses to hit the ground running.
Why businesses are moving to SaaS
The shift to SaaS isn’t just about convenience—it’s about staying competitive. In an environment where agility and adaptability are key, SaaS empowers businesses to respond to changing demands faster than ever. With a SaaS subscription model, you gain instant access to new features whenever and wherever you need them, and you can tap into real-time operational, financial, and customer data across all channels. That’s because you no longer have to own and maintain the additional servers required to support peak times like sales surges or product launches, saving both time and money.
What’s more, SaaS’s "work anywhere" flexibility gives your team the freedom to stay productive on the go, accessing critical information while enjoying a better user experience. All the while, security remains top-notch, ensuring your data stays protected no matter where work happens.
For example, retailers and many other businesses operating on LS Central POS and business management system in the cloud are experiencing a range of benefits, including:
- Automatic updates. “The great advantage of a cloud solution is that it is available anytime and anywhere,” says Bert Tragter, Financial Director at Danish retailer Love Stories. “Updates are performed automatically. Previously this was impossible as we had a lot of customization.”
- Lower IT costs. “Moving to SaaS has resulted in substantial savings on infrastructure, integration development, security management, additional system licensing, and system support,” says Mr. Nguyen Nguyen, Project Lead at Trung Nguyen Legend, Vietnam’s largest domestic coffee brand.
- Room for business growth. “Running LS Central in the cloud allows LEOLAND to manage their business from anywhere,” the marketing team at LEOLAND, Ukraine’s largest sports and entertainment center, told us. “But also provides them with the flexibility they need to expand their business to other cities across Ukraine and abroad.”
Is SaaS the best option for you?
If maintaining your current software solutions is draining your budget, it might be time to rethink your approach. Maybe your existing systems are no longer supported, maintenance costs are spiraling out of control, or rolling out new functionality feels like an endless uphill battle with months of development and deployment. Sound familiar?
If so, it’s the perfect moment to explore what SaaS can do for your retail business.
Ready to explore the benefits of cloud-based software or curious about migrating to LS Central SaaS? Contact our experts today and discover how to start your migration journey.
