Enterprise SaaS is a specialized level of cloud-based software designed for large organizations. Unlike regular SaaS products, enterprise-level solutions include advanced features that address the complex and large-scale needs of businesses.
In this blog, we'll dive into what Enterprise SaaS is all about. You'll learn about the churn rate in SaaS Enterprise, see examples of successful Enterprise SaaS companies, and understand the differences between Enterprise SaaS and traditional Enterprise Software. We'll also explore the differences between Enterprise vs. B2B SaaS.
What is Enterprise SaaS?
Enterprise SaaS is a subscription-based SaaS product or software solution offering essential tools for large company operations. Unlike other SaaS business models, it is generally designed for large companies with over 1,000 employees.
It combines the convenience and affordability of cloud technology with subscription fees instead of one-time purchases.
As it is cloud-based, the software is accessible from anywhere. It offers enhanced security, and can scale according to the organization's needs.
Read Also: What is SaaS Development [Types, Benefits & Challenges]
Enterprise SaaS Examples
Here we have listed three examples of enterprise Software-as-a-Service (SaaS) companies for you to understand what enterprise SaaS company is:
- Salesforce
Salesforce, a long-standing SaaS provider, provides clients with various tools covering marketing, sales, service, analytics, and ecommerce. They provide a free trial of their enterprise plan, allowing clients to test the product before making a commitment. Their platform offers a wide range of tools for sales, marketing, customer service, and analytics, helping businesses manage their customer relationships more effectively. Salesforce pioneered the concept of SaaS in the enterprise space and remains a dominant player in the industry.
- Asana
Asana is a leading project management software. It was among the pioneers in transforming project management through its simple yet powerful tool. They showcase its enterprise plan prominently on their website, highlighting its benefits and presenting compelling statistics to prompt users to take action.
- Airtable
Airtable is an emerging player in the enterprise SaaS market. It offers a versatile platform that combines the features of a spreadsheet with a database. Their enterprise solution is great for large organizations, providing advanced collaboration features, granular access controls, and integration capabilities.
Read Also: Save Time and Money with Airtable Automation and Airtable APIs
With Airtable's enterprise plan, teams can streamline their workflows, centralize their data, and collaborate more effectively across departments. Airtable's intuitive interface and customizable templates make it easy for enterprises to adapt the platform to their unique business processes, driving efficiency and productivity across the organization.
Looking for Airtable customization? Contact us!
How Enterprises Benefit from SaaS?
Large companies pay extra for extra features that make it easier for managers to report to higher-ups and offer better customer service. Enterprises benefit from using SaaS:
- Getting software updates and new features faster.
- Having special customer support
- Using advanced tools for detailed reports
- Saving resources on buying hardware and hiring IT staff
- Being more productive
1. Reduced Cost of Ownership
Traditional software often requires a big upfront investment in hardware and software licenses. With SaaS, enterprises can skip that initial cost. Instead, you pay a regular subscription fee.
This makes it easier to manage your enterprise's budget because you know exactly how much you're spending each month.
2. Faster Deployment
Setting up traditional software can be a hassle. You might need to install it on each computer, configure settings, and deal with compatibility issues. SaaS apps are different—they are accessed through your web browser, so you just sign up and start using them.
Thus, you can start seeing the benefits of the software much sooner.
3. New Features & Improvements
SaaS providers are always updating their software with new features and improvements.
The best part? You don't have to do anything to get them. They are automatically installed for you. This keeps your software up-to-date and gives you access to the latest tools without any extra effort on your part.
4. Reduced Costs for Human Resources
With SaaS solutions, enterprises can reduce the need for dedicated IT staff to manage software installations, updates, and maintenance tasks. This can lead to cost savings by reallocating human resources to more strategic initiatives that drive business growth.
5. No Need for Extra Hardware
Traditional software often requires you to buy and maintain your own hardware infrastructure, like servers.
But with SaaS, everything runs in the cloud. So you don't need to worry about it. You can access your software from any device with an internet connection, which means you don't have to spend money on expensive hardware that you might not need.
6. Increased ROI
When you add it all up—lower upfront costs, faster setup, automatic updates, reduced need for IT support, and no extra hardware expenses—it's clear that SaaS offers a lot of value. You will get a powerful software solution which is cheaper, faster, and easier to manage than traditional software.
Wondering How to Start a SaaS Company, read our comprehensive step-by-step article.
Enterprise SaaS Solutions
Hosted services are experiencing rapid growth, particularly at the enterprise level, which is becoming increasingly common. Many large global companies now prefer to oversee their essential processes internally. While enterprise-level SaaS may not suit every organization, it presents a valuable opportunity for cost savings and project success.
The driving forces behind SaaS expansion are its ease of deployment, rapidity, cost-effectiveness, and reduced Total Cost of Ownership (TCO). Key advantages include flexible features, seamless upgrade options without disrupting core operations, detailed usage analysis, minimized overheads, and economical provisioning.
Top-tier SaaS solutions can be customized to better suit unique business needs. This level of customization is not easy with traditional software. SaaS applications offer user-friendly interfaces and easy configuration, making them more accessible and adaptable.
They employ modern, open web-based architecture, which enables vendors to efficiently develop, test, and implement new features and functionalities at a lower cost.
Read Also: The SaaS Development Lifecycle: 6 Key Stages Explained
So, what is the difference between Enterprise SaaS vs Enterprise Software? Let’s see in detail.
Enterprise SaaS vs. Enterprise Software
Enterprise SaaS means software delivered via the Software as a Service (SaaS) model, tailored for large organizations. It is hosted in the cloud and accessed through a web browser.
On the other hand, "enterprise software" is a broader term encompassing all types of software used by large organizations, including both traditional on-premises software and SaaS solutions.
The key difference lies in between Enterprise SaaS and Enterprise Software: the delivery and deployment model, with enterprise SaaS offering the benefits of cloud-based delivery, such as scalability, accessibility, and subscription-based pricing, whereas traditional enterprise software may require upfront investment in hardware and software licenses and involve on-premises installation and maintenance.
What Distinguishes Enterprise SaaS Companies from B2B SaaS
Many get confused between B2B Saas and Enterprise. Enterprise SaaS companies target large organizations as their primary customer base. They offer scalable, feature-rich solutions designed to meet the complex needs of enterprises, including robust security, customization options, and integration capabilities with existing systems.
B2B SaaS companies, on the other hand, serve a broader range of businesses, including small and medium-sized enterprises (SMEs), in addition to large corporations.
While both enterprise SaaS and B2B SaaS focus on serving businesses rather than individual consumers, enterprise SaaS companies differentiate themselves by catering specifically to the unique requirements of large enterprises.
What Is the Difference Between Enterprise SaaS and Conventional SaaS?
The key difference between enterprise SaaS and regular SaaS lies in the target company size and the tailored functionality they provide.
While smaller businesses may benefit from general software tools, enterprise SaaS is for larger corporations, offering customized solutions instead of generic packages.
Ease of use is important for enterprise SaaS, as these products must accommodate hundreds or thousands of users with diverse roles and tasks. They must seamlessly integrate multiple applications for a smooth workflow.
Also, enterprise SaaS prioritizes security, scalability, and reliability to meet the requirements of large corporations. These enterprise SaaS solutions implement robust measures to safeguard against data breaches and hacker attacks.
What Is Enterprise Saas Pricing?
Enterprise SaaS pricing is the cost enterprises are expected to pay for your services. While it's often around ten times higher than your current prices, there's no fixed rule, and many SaaS companies mistakenly underprice their offerings.
Setting higher prices signals value to customers, while offering tailored packages suggests exclusivity. For instance, implementing tiered pricing could involve an Enterprise tier with a "contact us for prices" option to convey its premium status.
Different pricing models exist, such as charges based on usage, active users, or features. Encouraging upfront payments can improve cash flow, a strategy well-received by enterprise clients.
Regardless of the pricing approach, you should show that your solution is enterprise-level, offering sufficient features and functionality to justify the higher cost.
What Is Enterprise Saas Churn Rate?
Enterprise SaaS churn rate is how many SaaS customers cancel their monthly subscription or are expected to do so. It's measured over time (like monthly or annually) and helps predict revenue and performance.
Enterprise customers usually churn less because they have invested more and signed longer contracts. But it's still important to track, especially if you rely on a few big clients.
The two main methods to calculate churn are Dollar Churn Rate and Logo Churn Rate.
- Dollar Churn Rate measures the revenue lost, including from customers leaving or downgrading, while Logo Churn Rate represents the percentage of customers who have left your service.
An acceptable churn rate for enterprise is between five and ten percent annually, although this can vary depending on the company.
For rapidly growing SaaS companies, another metric called "net negative revenue churn" may be used. This measures whether increased revenue from existing customers is higher than the revenue lost from canceled accounts.
Is Your App Ready For Enterprise Buyers?
When targeting enterprise buyers, your app should stand out to them and prove its suitability for large-scale, heavy-use needs.
Your app should offer a wide range of features tailored to address the challenges of enterprise customers. This could include AI-powered automation, security measures, and advanced analytics capabilities. Consider integrating enterprise resource planning (ERP) software to streamline and integrate various business processes into a single system, as well as human resource management tools.
Additionally, providing cross-platform support might help and allow customers to access the solution across desktop, mobile, or browser-based platforms. Regular updates and upgrades should be delivered automatically, minimizing inconvenience for the customer.
Offering customization options is key, ensuring that the app seamlessly integrates with existing technology stacks and interfaces smoothly with other high-end tools, such as Salesforce for CRM.
Enterprise customers are willing to pay more for features that enable scalability. But, is your app ready to offer more features?
How Can DataCose Help?
Developing a product that meets the demands of enterprise-level companies is not easy. But, now is the time for enterprise SaaS as more enterprises are embracing SaaS solutions.
Keep in mind that deploying enterprise software can be a million dollar investment for your business. It is important to prove that your SaaS product delivers value.
At DataCose, we specialize in helping SaaS companies with our expertise in customization, integration, and enterprise-level support. Our expert team provides tailored tech strategies and innovative solutions to ensure your SaaS product stands out and meets the high standards of enterprise clients.
Partner with DataCose today. Contact us now to get your 30-minute free strategy session!
Enterprise SaaS FAQ
What is the difference between enterprise SaaS and micro SaaS?
Enterprise SaaS helps large companies with lots of employees, while Micro SaaS serves smaller groups. Micro SaaS is usually run by one person or a small team and focuses on a specific area, unlike Enterprise SaaS which is broader.