Today’s economy is experiencing a true technological race in the pursuit of digital transformation for businesses, and the SaaS (Software as a Service) model has played a decisive role in this scenario.

It is expected that by the end of the year, more than USD 350 billion will be invested in this trend worldwide.

Data from Statista Shows an investment growth rate of nearly 20% per year until 2029, when it may surpass USD 793 billion globally.

Retail companies, without a doubt, are among the main drivers of this model’s growth thanks to their pursuit of efficiency, scalability, and cost reduction.

After all, with SaaS, retailers can leverage innovative solutions that fit the budgets of different business profiles. Based on this, we’ve outlined some key information for those who still have doubts about SaaS and its advantages.

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What SaaS technology is and how it works

The acronym SaaS comes from the English concept Software as a Service.

Put simply, the expression means Software as a Service, or even Software by Subscription.

This model is revolutionizing the way companies and individuals use and consume innovation, democratizing access for all. This revolution is based on the ability to use disruptive, always-up-to-date tools without the need to purchase expensive licenses that must be renewed annually.

Pioneering companies in this concept include Salesforce, Netflix, and Spotify, which transformed their industries by providing accessible and scalable solutions through SaaS. In other words: we’re talking about more innovation at lower costs — and this also applies to retail.

With SaaS, retailers can contract services on demand, pay fixed monthly fees, and benefit from continuous updates, accelerating their technological journey.

Today, in retail, both large players and small merchants can adopt this model to improve their operations and enhance the customer experience.

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The presence of SaaS in retail

With so many benefits, it’s no surprise that the retail sector has been investing more and more in SaaS to automate processes, cut costs, and improve the shopping journey for customers.

According to Grand View Research, cloud solutions for retail generated over USD 50 billion worldwide in 2023 alone.

And the expectation is that this market will grow 18.7% per year until 2030, driven by demands such as greater security, data analytics capabilities, and efficiency in logistics, payments, and inventory management.

Looking at Brazil, the digital transformation of small businesses has been a central factor in the growth of the SaaS market in the country.

According to a study by Sebrae, SaaS adoption is expected to grow 20% per year in Brazil, thanks to SMEs (Small and Medium-Sized Enterprises), until 2028.

This is because, as mentioned earlier, subscription software allows businesses of all sizes to access cutting-edge technologies, thereby boosting their competitiveness in a highly competitive environment.

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6 advantages of SaaS for retail

As you can see, there are many benefits that SaaS solutions bring to the market.

In retail, these advantages extend across different areas and processes.

To sum up, here are the six key benefits SaaS offers retailers. Check them out below!

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1. Democratization of technology and digital transformation

‍In the past, access to innovative technologies and robust management systems required major investments in servers, licenses, and IT infrastructure.

With SaaS, small and medium-sized retailers can adopt cutting-edge technology without high upfront costs, accelerating the sector’s digital transformation.

In addition, greater digitalization through SaaS platforms facilitates integration across company areas — from sales and marketing to logistics and customer service — ensuring greater operational efficiency.

2. More security and cost predictability

‍By operating in the cloud, SaaS solutions provide more layers of protection against failures and cyberattacks due to the redundant nature of data centers and access to multiple cybersecurity tools.

Unlike traditional software that required high one-off investments, SaaS operates under a fixed subscription model, providing financial predictability for businesses.

Well-established SaaS solutions also comply with strict regulatory standards, meeting requirements such as Brazil’s LGPD (General Data Protection Law), reducing risks related to consumer data privacy and information security.

3. Access to real-time updates and technological evolution

‍One of the biggest advantages of SaaS is that updates are automatic and continuous, with no need for intervention or license purchases.

This means retailers always have access to new features, security patches, and improvements, ensuring they’re using the latest technology.

This is crucial for retailers of all sizes to keep up with trends like artificial intelligence, big data, and remote automation, which are already transforming the industry.

4. Scalability and adaptability to business growth

‍SaaS solutions are also highly scalable, allowing companies to increase or decrease resources as needed, without new investments in IT infrastructure.

Additionally, the customization flexibility of SaaS technologies allows adaptation to business growth or cost-containment needs. In other words: the technology adapts to the company’s stage, simplifying resource management in retail.

5. OPEX: Deductibility of Operating Expenses

‍Unlike hardware investments classified as CAPEX (capital expenses), SaaS costs are categorized as OPEX (operating expenses).

This means monthly payments can be deducted from income tax, providing tax benefits for retailers.

Furthermore, SaaS adoption reduces the need for large internal IT teams, cutting payroll and infrastructure maintenance costs.

6. Technology that pays for itself

‍The efficiency gains provided by SaaS often outweigh the investment made by retailers, thanks to reduced losses, optimized processes, and the potential increase in profitability.

And that’s considering that the investment and operating costs of SaaS solutions are usually much lower compared to traditional technologies.

This makes SaaS a strategic, financially advantageous choice that can accelerate companies’ digitalization journey.

It is a trend that, without a doubt, is here to stay and is already delivering major benefits for retail: from increased productivity and operational security to cost reduction and improved customer experience.

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Conclusion: accelerate SaaS adoption in retail

Given so many strategic benefits, the digital transformation of Brazilian retail is directly tied to SaaS adoption.

With advantages such as cost reduction, scalability, security, and continuous innovation, this software model has undoubtedly established itself as a competitive differentiator for companies in the sector.

And the Darwin Platform is an example of a SaaS solution that brings together all these advantages while also offering exclusive features for your business!

With a focus on automation and operational intelligence adaptable to different retail business profiles, our innovative solution allows retailers to reduce losses, optimize processes, increase efficiency and security, and even boost profits and profitability.

With the Darwin Platform, you will also have access to advanced tools that evolve alongside retail, driving your company’s growth and ensuring fundamental competitive advantages for success in a highly competitive and ever-changing environment.

If you want to accelerate an effective digital transformation journey in retail, be sure to learn more about the Darwin Platform and discover how SaaS can strengthen your market positioning.