8 Types of SaaS Solutions You Must Know About in 2024

What is Software as a Service solution and how can they contribute to your company's success?

This article will look at the 8 types of SaaS solutions you can find on the market and their benefits. At the end of this article, we will also share which SaaS solutions our team at Statrys use to help improve our productivity and efficiency.

What Is a SaaS Solution?

Software-as-a-Service (SaaS) is a web-based software that allows its users to access and use online applications (a.k.a cloud computing). Instead of purchasing and installing software, something that requires costly hardware investments, companies can select the SaaS solution instead.

This gives companies access to the same type of technology remotely but with greater scalability, flexibility, cost-efficiency, and maintenance.

The types of SaaS models can vary, starting from basic applications such as email, customer relationship management (CRM) & accounting software to more complex applications such as enterprise resource planning suites and integrated analytics platforms.

These innovations have allowed companies (especially startups) to stay competitive and efficient by giving them access to enterprise-level tools without the big entry costs or long-term commitments.

Now that we understand what a SaaS solution is let's have a quick look at its history.

History of SaaS Solutions

SaaS solutions were first introduced in the late 1990s when companies such as Salesforce, NetSuite, and RightNow began offering web-based customer relationship management systems.

By 2004, Salesforce had become one of the most successful cloud companies, with over 5 million subscribers worldwide. Since then, the popularity of SaaS solutions has grown exponentially, not only due to their capability but also due to new innovations that SaaS entrepreneurs come up with to meet the latest challenges for companies.

With this technological progress of the SaaS model, its popularity grew, and many companies were created with the goal of developing and providing software services via the cloud. Microsoft Office 365, Google G Suite, Slack, and Dropbox are some examples.

Today, SaaS remains one of the fastest-growing sectors in tech. With its continued growth, it looks like the future will hold even further adoption by both businesses and consumers alike.

Essentially, SaaS applications are becoming a key factor of success when running a company, but what are the options available on the market?

What are horizontal and vertical SaaS?

When it comes to describing the different types of SaaS available, two terms have become commonplace: horizontal and vertical. But what do they really mean?

Horizontal SaaS refers to applications that are broadly applicable across many industries or organizations. These solutions provide features or services that apply across a broad range of business settings, often without any major customization required.

Famous examples of this kind of software include customer relationship management (CRM) systems such as HubSpot and email marketing platforms. such as MailChimp.

On the other hand, Vertical SaaS Solutions are more specialized and focused on one specific industry or organization type — such as healthcare, retail, or government — with features tailored to those markets. This focus allows for more advanced customizations as well as a deeper understanding of the market's needs.

Examples can include medical record-keeping software for healthcare providers or financial reporting tools for large corporations.

Now that we've covered horizontal and vertical SaaS, next we will cover the 8 types of SaaS solutions that you should know about.

The 8 Types of SaaS Applications

1. Accounting SaaS

Accounting SaaS solutions offer an efficient, cost-effective way for small and medium-sized businesses to manage their accounting processes. It allows businesses to store their financial data securely and access their accounts from any computer with internet access.

There are 5 big players in the accounting SaaS world – including names like Xero, FreshBooks, Zoho Books, Sage 50 (formerly Peachtree), and QuickBooks.

Each of them offers powerful tools that can help organizations streamline and control both finances and processes.

For example, businesses can set up automatic invoicing reminders or linked banking accounts to pay bills quickly and easily. Automating accounting tasks can lead to more accuracy in the books and streamlined workflows, resulting in increased productivity.

SaaS solutions provide a lot of benefits, such as improved collaboration between departments, easier compliance with government regulations, better customer relations management, real-time data insights, and more.

In short, it simplifies the financial needs of a business while giving them the essential data they need in order to make decisions that will help them reach their goals.

💡Tip: You can integrate your Xero account with a Statrys business account to enhance your accounting processes.

2. Content Management System (CMS) SaaS

A CMS is designed to help manage the creation and modification of digital content. It can be used by anyone, from bloggers to big corporations, for managing all types of content, such as text, images, videos, or audio files. CMS makes it easy for users to create and manage web pages quickly and efficiently.

The reason why CMS is so popular is that it requires minimal technical knowledge or coding skills, making it accessible to almost everyone with basic computer skills. Additionally, a CMS provides users with multiple functionalities they would otherwise need to code into a page individually. These functionalities may include things like permissions control, user access levels, automated backups, analytics tracking, etc.

There are 5 big players in the CMS SaaS world – including names like WordPress, Joomla, Drupal, Magento, and Shopify. Individually, they're known for different reasons and are also suitable for different business types.

For example, WordPress is widely used as an open-source CMS platform and is famous for its ease of use, customization, and flexibility. However, it struggles when it comes to security and scalability.

Whereas Magento is also known for its flexibility and scalability, and it is not easy to use. Therefore, it is more suited for businesses that want to build larger online stores.

If you're looking to get started managing your website's content, then we recommend looking into the 5 major Content Management Systems that we've mentioned above.

3. Customer Relationship Management (CRM) SaaS

A CRM is key to having meaningful customer relationships and gaining customer insights. CRMs are a critical part of any business's workflow. Companies that use CRM are able to keep track of customer data, such as buying behaviors, and then tailor their marketing strategies around them.

There are 5 big players in CRM – including names like Salesforce, Microsoft Dynamics 365, HubSpot, Zoho CRM, and Pipedrive. If you have worked in a startup, chances are you may have already heard of some of them.

They offer enterprise-level features that allow businesses to create contact groups, share important documents, store customer information securely, etc.

But beyond the features offered by these big players, they also help streamline operations by aiding communication between teams and departments. Companies also use this to measure funnel performance, with most systems providing analytic data on performance metrics.

In addition, it helps ensure better customer service by storing relevant information such as purchase history, which will give detailed insight into customers’ preferences and needs - allowing faster responses to urgent queries or complaints.

Overall, good quality CRM software is an invaluable asset when it comes to managing relationships with clients in an effective manner, but the final result will depend on how each organization uses this data.

4. Enterprise Resource Planning (ERP) SaaS

ERPs are a SaaS tool for companies of all sizes to better manage their business processes. It helps streamline processes such as inventory and order management, operations scheduling, customer relationship management, enterprise resource management, and financial accounting tasks.

There are 5 big players in ERP, such as SAP, Oracle, Microsoft Dynamics, Infor, and Workday. You may have started noticing that some of these tools are listed in multiple categories, namely Microsoft Dynamics. This is because they are trying to be the "one-stop service" for businesses instead of using different vendors for different functions.

By automating key processes and offering real-time insights into performance metrics, ERP software can help reduce response time on customer requests and minimize manual data entry since much of it is already digitally stored. ERP can also provide custom reports tailored to certain sectors or departments in an organization, so executives have a better handle on their current operation status as well as potential areas for improvement.

If you want a powerful way to optimize your corporate infrastructure, Enterprise Resource Planning (ERP) may just be the solution you're looking for.

5. Project Management SaaS Applications

To keep it simple, Project management software is a tool that organizations use to plan, execute, and monitor projects. They are used to help improve efficiency by creating productive workflows and giving accountability to team members.

Teams are able to use this to manage different projects and tasks whilst keeping communications clear for all parties involved. This reduces the chance of miscommunications and errors, thus reducing the time and risks.

The 5 biggest names in Project management tools are Asana, Trello, Monday.com, Jira, and Microsoft Project.

Each tool will have its own strengths and weaknesses, but they all help business owners and managers manage their teams and projects. The main difference between these tools is the user interface, and this depends on which interface each user or company prefers.

Finally, these tools can show key performance metrics and insights into individual contributions throughout the life cycle of a project.

Whether you're just starting out or already deep into a project, investing in reliable project management software can save time, money, and stress from juggling multiple responsibilities at once. It is recommended to create a standard operations procedure (SOP) when using project management tools because things will get complicated if everyone is using it differently, such as naming projects a certain way, not marking the project as complete or adding people who aren't related to the project, etc.

6. Communication SaaS Applications

Communication software has grown in popularity massively in recent years, mostly due to the global pandemic. Nowadays, people are still using these tools as the main method of communication, especially for companies with remote work and international companies.

The 5 most prominent players in communication SaaS are Slack, Microsoft Teams, Zoom, Skype for Business, and Google Hangout Meets. Most of these tools are free to use, and some offer a paid version to access additional features.

The most notable benefit of using communication platforms is their ability to create channels where users can have seamless conversations without having to delay communications due to location or time differences.

At Statrys, we use Slack as the main channel of communication because we have an international team. This enables our team members to collaborate in real time, which enhances productivity and allows us to deliver better service for our clients.

Additionally, communication tools provide teams with a secure environment so all information that we share is encrypted and safe.

Another great thing about communication platforms is the flexibility they offer users when it comes to chatting functions, video calls, and audio calls, pushing tasks, and scheduling meetings, saving everyone involved substantial amounts of time in the long run.

7. HR SaaS Applications

HR (Human Resources) SaaS software solutions are gaining more recognition in the corporate world. It's no wonder the value these solutions bring to businesses is unparalleled. What kinds of solutions does HR SaaS software provide?

First and foremost, they offer cloud-based services that enable organizations to efficiently manage their employee data and create a streamlined HR process from recruitment to retirement. This saves time and minimizes admin costs associated with traditional HR management processes.

Big names such as Workday, Zoho People, ADP, SAP, BambooHR, and Factohr provide comprehensive all-in-one solution packages that cover all aspects of an organization's recruitment efforts, as well as ongoing performance management and professional development.

They work seamlessly with third-party integrations for payroll systems or other software providers.

If you’re considering implementing an HR SaaS solution into your organization, the benefits go beyond simply providing a unified system for all operations. With the right technology partner in place, you’ll have access to robust analytics capabilities and automated processes that reduce manual tasks such as creating reports or engaging in cross-disciplinary communication within departments—all contributing to mitigating risk and maximizing savings on time and cost.

8. Billing SaaS Applications

When running a business, it is important to have an easy and reliable way to process payments. That's why it's important to choose the right payment gateways and billing solutions. With so many providers out there, both big names and lesser-known players, you'll want to choose ones that offer the best combination of fees and customer service.

Stripe, Zuora, and PayPal are three of the most well-known providers that can process payments quickly and securely. These services are integrated with your site so customers can quickly checkout; they also offer great security features such as fraud protection. Using a reputable payment gateway increases the chance of conversion by adding credibility.

No matter what type of payment gateway or billing solution you decide to implement for your business, make sure you do your research and compare different options until you find one that fits your needs perfectly.

What to Keep an Eye On?

With the rapid advances in technology and the increasing demand for digital services, it’s essential to keep an eye on the different types of SaaS that could make a big impact over the next 5 years. 

Recently, there has been a lot of buzz surrounding artificial intelligence (AI) and AI-powered tools, most notably ChatGPT. However, ChatGPT is not alone in using AI because many other companies, such as Grammarly, Google, and many others, are also utilizing AI to power their businesses.

AI powers many automated processes today, and its capabilities are only expected to grow in sophistication in the coming years. AI-enabled machine learning is expected to be able to provide better and more accurate insights to businesses and marketers to make more informed decisions.

Finally, blockchain technology is another area where SaaS is making its presence felt. The decentralized nature of public blockchain networks makes them secure against any malicious activity while also providing transparency regarding transactions and data stored within them. With more businesses embracing blockchain technologies and distributed ledger systems every day, it’s worth keeping an eye on this rapidly growing sector as well.

There are some examples of SaaS-based blockchain startups to be aware of, such as Infura, OriginStamp, and Anyblock Analytics. As they continue to develop, we expect to see many more SaaS-based blockchain startups in the next 5 years.

Throughout this article, we wanted to be as factual and neutral as we could in order to provide you with the best insight into the different types of SaaS solutions.

Final Thoughts

In conclusion, SaaS tools are an effective way to reduce IT costs, increase efficiency and productivity, and enable access to the apps and data needed to run a business effectively.

With the cloud-based platform of SaaS making it easier for companies to store and distribute their work without having to bother about difficult installations or manual updates, more businesses across industries are turning towards SaaS to manage their operations.

The benefits that come with using SaaS are extremely valuable – from significant cost savings, scalability, increased agility, quick deployment times, and improved customer engagement.

Companies have also seen marked improvements in user satisfaction ratings coming from customers who appreciate the convenience of being able to access data anytime, anywhere. Altogether, SaaS tools help business owners streamline operations while providing superior value in terms of cost savings and performance.