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How SaaS tools contributed to the evolution of data analytics

March 21, 2023
3 min read
How SaaS tools contributed to the evolution of data analytics


As technology advances, so do the business models surrounding it. One such model that has been gaining traction in recent years is Software as a Service (SaaS). Currently, there are more than 2 million people using SaaS to run their businesses, with this number growing exponentially each year. 

SaaS companies have revolutionized the field of data analytics, offering tools that help businesses gain insights into user behavior, measure the effectiveness of their products and services, and make data-driven decisions that can help them grow and succeed. 

In this blog post, we'll explore the origins of SaaS and explain how it impacted the evolution of the data analytics industry.

What is SaaS and how did it start 

Software as a Service (SaaS), is a software delivery model that enables vendors to host software applications and makes them available to customers over the internet. It’s origins can be traced back to the Application Service Provider (ASP) model, which emerged in the late 1990s. ASPs provided businesses with access to software applications over the internet, but the model wasn't very successful due to slow internet speeds and limited functionality. It wasn't until the mid-2000s that SaaS really took off, thanks to advancements in internet infrastructure and cloud computing. Today, SaaS adoption has skyrocketed! 

SaaS has become increasingly popular for a variety of reasons. Firstly, it offers a more cost-effective solution for businesses, as they don't have to invest in expensive hardware and IT staff to maintain software on their own servers. Additionally, SaaS allows for easier scalability and flexibility, as businesses can easily add or remove users as required and access the software from anywhere with an internet connection.

From a vendor perspective, SaaS provides a more predictable revenue stream as customers typically pay monthly or annual subscription fees. Moreover, vendors can release new features and fixes more frequently without having to worry about customers manually updating their software, thus allowing for faster iteration and updates.

Evolution of data analytics through SaaS 

The evolution of data analytics through SaaS tools can be traced back to the early 2000s. Initially, SaaS companies offered basic data analytics tools such as spreadsheets and dashboards. However, as the demand for more sophisticated data analytics tools grew, SaaS businesses started to offer more advanced solutions, such as predictive modeling, time series analysis and machine learning algorithms. Here are some significant ways in which data analytics has evolved through SaaS tools:


One of the key benefits of SaaS tools is their accessibility. Βusinesses no longer need to invest in expensive hardware, software licenses, and IT support to perform analytics. Instead, they can simply access analytics software through a web browser or mobile app, from anywhere in the world. This has democratized data analytics and made it accessible to a wider range of businesses and organizations.

Additionally, traditional data analytics tools require specialized technical skills and training to use effectively. However, SaaS data analytics tools are designed to be user-friendly and intuitive, allowing business users to easily access and analyze data without the need for in-depth technical expertise.


Scalability is a critical aspect of data analytics, especially as businesses generate increasingly large volumes of data. With traditional on-premises solutions, scaling up analytics capabilities can be costly and time-consuming, requiring additional hardware, software, and IT staff to manage and maintain the infrastructure. This can make it difficult for businesses to keep up with growing data volumes or seasonal spikes in demand. 

Cloud-based analytics platforms can easily scale up or down depending on the needs of the business. This means that businesses can start with a subscription and expand it as their data requirements grow.


SaaS providers offer pre-built analytics solutions that are tailored to meet the needs of businesses across various industries. These platforms are typically maintained and updated by data science and software development experts, to ensure their reliability and security. 

In contrast, to create a robust in-house analytics platform, businesses must have a deep understanding of data science, statistics, and software development. That requires a lot of investment in terms of time, money, and human resources. Companies need to recruit and retain skilled professionals who have expertise in data analytics, machine learning, and programming. Additionally, businesses must invest in specialized hardware, software, and infrastructure to support the analytics platform. These investments can be significant and may require ongoing maintenance costs. The development process can be lengthy, requiring a considerable amount of time to design, build, test, and implement. 

Using SaaS tools can also lead to cost savings through improved efficiency. Cloud-based analytics platforms can automate data-related tasks, such as data cleaning and analysis, reducing the need for manual labor. By automating these tasks, businesses can save significant amounts of time and money associated with hiring and training staff. Furthermore, it allows employees to focus on more strategic initiatives that can add greater value to the business.


SaaS tools provide businesses the flexibility to customize their analytics capabilities to fit their specific needs. Many SaaS tools offer a range of customizable dashboards and reports, allowing businesses to tailor their analytics to their unique industry, audience, or objectives. This level of customization can help businesses gain a deeper understanding of their data and make more informed decisions based on their specific needs.


Finally, SaaS tools have evolved to offer easy integration with other tools and platforms. For example, businesses can now easily integrate their analytics tools with their CRM or marketing automation platform enabling them to access and analyze data from multiple sources in one place.

By integrating different tools and platforms, businesses can create a more comprehensive view of their operations, customer behavior, and market trends. This holistic view of data can provide valuable insights that can help businesses make informed decisions and take actions that align with their strategic goals. With the help of SaaS tools, businesses can streamline their workflows, automate tasks, and optimize their performance, resulting in improved efficiency and better results.


In conclusion, Software as a Service (SaaS) has transformed the way businesses access and utilize data analytics tools. SaaS providers have made data analytics more accessible, scalable, and cost-effective, enabling businesses of all sizes and industries to make data-driven decisions. SaaS has also democratized data analytics by eliminating the need for specialized technical skills and expensive hardware. As technology continues to evolve, we can expect SaaS to continue playing a critical role in driving the growth and evolution of the data analytics industry.

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