Is SaaS-Based Snow Plow Business Model Worth Profiting

Winter is due on the corner and your snow plowing business is once more going to bring in consistent reliable demand. So, are you prepared to make the most out of your snow plowing business this winter and many more winters to come?

Remember, there is a significant change in the way businesses around the world are being operated and consumer buying behavior due to the current health crisis (COVID-19 outbreak). Most enterprises are considering shifting their offline shops to digital platforms.

According to the Statista report, IT vendors around the world are going to increase their spendings on various technologies while cybersecurity and hybrid or multicloud top the list with 84% and 74%, respectively.

Take a look at the report

The data is based on the current situation. At the same time, when we take a look at the previous (pre-pandemic) data gathered by various organizations, they narrate similar stories.

Around 51% of organizations use SaaS technology. SaaS refers to Software-as-a-Service that is known as cloud-based software as well. It is now a mainstream technology —and for a good reason. Around 60% of those looking for software advice want web-based software while 2% focus on-premise software.

In 2020, the public cloud services (the largest is SaaS) market is expected to reach around $257.9 billion in size.

Cloud-based technology includes Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS).

So, while going through the data, you must have concluded that if you want to grow your snow plow business beyond the level, then you should adopt the growing technology trends. And, when it comes to selecting the right technology for your snow plowing business, then the SaaS business model is the way to go.

Suppose you are exploring ways to integrate the SaaS model into your snow plow business. In that case, this article is for you. If you plan to start a snow plowing business from scratch, this is more beneficial for you.

What is the SaaS Business Model?

SaaS refers to a software delivery method that enables users to access data from any internet-enabled device and a web browser. In this web-based model, you do not need to build any applications for your snow plowing business. At the same time, software vendors will host and maintain everything. If you wish to develop an app and deploy it to a private server, you manage its server and database. Whereas in SaaS, you get rid of all hassles —your vendor does it all for you.

What Differentiate SaaS from Traditional On-Premise Software?

The traditional on-premise software and SaaS model differ from each other in two key ways:

SaaS does not require extensive hardware to deploy: If you adopt the SaaS business model, you don’t need extensive hardware, which is costly, outsource most of the IT responsibilities, and so much more.

SaaS systems do not require high upfront cost: There are various SaaS system subscription models, all are cost-effective. You can choose one of them based on your requirement. You have to pay based on the subscription model you choose.

Why pay upto 20% more as maintenance and support fee unnecessarily for on-premise software when everything is covered under the SaaS system subscription fee?

Your Snow Plowing business will grow by 19.63% if you move the cloud (SaaS infrastructure).

Benefits of SaaS for your Snow Plowing Business

We have already mentioned that around 74% of businesses consider moving their apps to SaaS by the end of 2020. And, the trend does not seem to be losing traction now or ever.

So, let’s take a look at its top benefits for your business;

No Huge Upfront Cost

We’ve discussed earlier in this article that the SaaS platform is comparatively cost-effective against on-premise. SaaS follows a pay-as-you-go model —pay monthly or annual subscription fee and use uninterrupted service.

Let’s explore how SaaS simplifies the business process

Most midsize companies want to adopt the SaaS model due to its cost-effective and convenient solutions. When you have an on-premise app, you are supposed to manage its everything, from application to networking. However, in SaaS, you work cut short to zero —your vendor will do it for you.

Best Cost Saving Option

Moving to SaaS or adopting SaaS technology can be a real money-saver. We have shown you that SaaS costs 20% cheaper than on-premise. But, whether SaaS is cheaper or costlier depends on the SaaS annual subscription fee. If it costs less per year than on-premise maintenance costs, then SaaS is a good option.

If it (SaaS subscription fee) costs more than the on-premise maintenance fee per year, then you need to think about sticking up with on-premise. However, you compare it from different perspectives. For example, whether SaaS provides uninterrupted service, lets your customers find your products quickly, and work better than on-premise or not.

As we have known that moving to a cloud platform can result in 19.63% business growth, the percentage may differ from one business to another.

Access from Anywhere, Anytime

With 99% uptime, SaaS applications enable users to access databases from anywhere and anytime. All you need to have is an internet-enabled device with a browser, and you are all set to access on the go. However, such features may not help snow plowing business. We understand that you hardly visit people to get work. Instead, people will visit your website and book your services. Even then, deploying your snow plow business applications on cloud platforms will help users in many ways. For example, it will provide faster services that attract user engagement.

Updated Features

Keeping your business application with updated features will result in higher productivity and help you make informed decisions. Importantly, you need to gather any extra resources to upgrade your application —your vendor will manage the upgrades. Importantly, it will be done in the background so that the customer-facing interface will have no issue.

Cost to Developing SaaS-Based Applications

“How much does it cost to develop a SaaS application?” It has been one of the prime questions that people usually ask to snowplow business app development companies. And, the ubiquitous answer that every time people get is “it depends.”

Yes, the cost of developing a SaaS application depends on various factors, such as;

• Technologies, features & design
• Outsourcing or in-house development
• Development charges per hour

Technologies, features & design

The first costing factor is the technology you choose, the features you want to integrate, and the design you choose to have. The cost will depend on your choices. For example, the price will depend on its technology stacks, features, and design. If you want to integrate complex features and design, it will take more than expected hours to develop. Henceforth, the price will depend on that.

Outsourcing or in-house development

The cost to develop SaaS applications will also differ based on the type of development method you choose. For example, suppose you decide to build the app by hiring an in-house team. In that case, it will cost higher than expected as you may have to gather all resources, proper ambiance, and more. For example, you not only have to hire developers, designers, and project managers but also have to gather resources, such as hardware, infrastructure, and more.

Whereas if you decide to outsource your project, the cost will depend on the country and development company you choose to outsource. For example, when you choose to outsource your project in the USA, Canada, or other European countries, the cost may be around $50 to $250 per hour. If you outsource the task to countries like India and South East Asia, then the development cost per hour would be $15-35/hr.

Let us make this more precise, especially from a snow plowing business perspective. You may not choose to hire a team to create an app; instead, you would like to outsource it to a reliable development company. So, explore online, talk to your competitors' friends, ask about references, make inquiries, and if you find any trusted company, handover your project to them.

Here’s checklist that you should do before submitting your project;

• Begin with selecting a country where you want to outsource
• Select a development company (select 4-5 companies and compare)
• Take interviews of team and project managers before hiring
• Talk about their experience and expertise in a relevant project
• Talk about pricing (development cost per hour)
• Talk about development method
• Talk about deadlines —whether you will get your project in deadline or not
• Ensure you get all signed agreement paper, especially NDA
• Then handover your project

Final Thoughts

The aim of this article is to help you gain more out of your snow plowing business. Whether you want to start a new or you're an established operator, having a snow plow mobile application based on SaaS will help you enhance your business outcome.

Some frequently asked questions regarding SaaS

Is SaaS Customizable?

Yes, SaaS is flexible enough to be customized based on your specific business needs.

Who Owns Your SaaS Data?

You own your SaaS data. You can retrieve it anytime you want, or you can also export your data locally anytime.

Is SaaS Technology Safe?

According to Gartner, around 95% of security breaches may occur due to customers’ fault. That means SaaS providers will ensure that there is a minimal security risk from their end. Everything that exposes to the internet are vulnerable, and SaaS is no exception to that. However, as technology advances, they are coming up with updated security patches.