What Is Software as a Service?

So, what is software as a service? Software as a service, or SaaS, is an essential component of modern business. It’s a cloud-based service in which you access an application via an internet browser rather than downloading software to your desktop PC or office network to operate and update.

If you’re looking for a software services provider, this post will help you find the best one for your needs.

What Is Software as a Service (SaaS)?

To reiterate, software as a service is one of the three main cloud-computing service models and encompasses any web-based software or application that is managed by a provider and accessed by the end-user. 

No prior knowledge or experience in cloud computing or development is necessary to access these services, and the vast majority of SaaS products are designed to be intuitive and easy to navigate with minimal training. 

SaaS has become so commonplace, we don’t even realize just how often we use this service. For example, every time you write an email, listen to your favourite playlist or save documents in your DropBox, you’re using Saas. 

Cloud-based applications are used by individuals and companies on a subscription basis, allowing end-users to rent these applications for however long they need them.

Many of the SaaS products that are used today used to involve installing a CD on your PC, which would be stored on your desktop to be accessed from your Windows screen. Now, the same software is available on the internet. All you need is a username and password to access the same product. 

SaaS is one of the many ways in which business IT infrastructures are migrating over to cloud computer service models.

Example of Popular SaaS Products for Individuals and Businesses

What Is Cloud Computing?

Cloud computing refers to any computer service that’s delivered on-demand over the internet. The end-user essentially rents access to these services on a pay-as-you-go basis, which eliminates heavy IT infrastructure costs. Cloud computing is scalable, so the same services can be accessed by individual users or large-scale companies. 

The three main service models of cloud computing are software as a service (Saas), infrastructure as a service (IaaS), and platform as a service (PaaS).

Here’s a quick overview of the different cloud computing service models:

The Difference Between Saas And Cloud Computing

SaaS is one of the various types of cloud computing service models offered to users on a pay-as-you-go basis. SaaS is a branch of cloud computing, however, there’s much more to cloud computing than SaaS. 

Above, we discussed PaaS and IaaS, but there are many more cloud computing services that businesses can subscribe to that don’t necessarily fit into the SaaS model.  

Advantages and Disadvantages Of Saas

It’s been said by many leading developers, software engineers, and tech companies that cloud computing (and SaaS) is the way of the future. And since the pandemic has changed the way businesses operate and manage their workforce, SaaS has proven just how valuable it is as a cloud computing service.

But let’s take a closer look at the advantages of using SaaS for both individuals and companies.

SaaS Is Accessible

Because SaaS products are available on PCs, Macs, tablets, and smartphones, SaaS can be accessed anywhere at any time. There are no VPN or major downloads needed to get started, and users can choose whichever device they want to work on. 

The benefit of SaaS’s accessibility was most prevalent during the start of the pandemic when businesses had to shutter their central offices and send their employees home. By migrating over to SaaS, businesses were able to stay afloat during the pandemic because their employees could easily access the products and software they needed to continue working on projects, scheduling meetings, and following up with customers.

Saas Is Scalable

SaaS products are available on-demand so that individuals and businesses can choose the service offerings they need without having to pay for those they don’t. The scalability of SaaS means that these products can grow with your business. The most straightforward example of this is adding profiles and email accounts for new employees. 

A company’s IT department doesn’t have to make any storage considerations, since SaaS products already have that covered. If you need more storage to account for new users or customers, you usually just have to click the option on your web browser to immediately pay for the next tier of storage.

Scalability works both ways. SaaS vendors give you the option to downsize your storage capacity or other offerings so that you aren’t using any part of the app or software you don’t need.

SaaS Has Low Costs

With an on-demand or subscription-based SaaS, the end-user or organization is only paying for the services they need. 

Before software was available through web-based applications, companies would have to buy and install the hardware to their PCs, plus pay for the amount of licenced computers/users, ongoing maintenance, and any upgrades that came long. 

So while the monthly subscription costs may seem more expensive than the traditional software model, all of the upgrades, maintenance, and support associated with the SaaS product are already built into the price. What’s more, you don’t have to rely on a software specialist or licenced IT engineer to provide additional support or install updates.

SaaS Is Always Ready

All you need to start using a SaaS product is an internet/mobile connection and a device. This is true for individuals and companies alike. Cloud-based software services are always available, always up to date, and always ready to start using the moment you sign up. 

This can be incredibly useful if you’ve recently migrated over to cloud-based solutions and don’t want to experience any downtime during the transition. This, of course, can save you on operational costs. It’s also helpful for startups who are eager to start working on their first projects and scaling up their business.

SaaS Gives You the Latest Product 

Using SaaS ensures you’re always using the latest available software. All the updates are done in the cloud, so you might not even notice when an update has happened. With traditional software products, updates took time and valuable disk space to run.

Of course, SaaS is not without its flaws. Let’s take a look at some of the disadvantages:

Data Security Can Be a Concern

Many companies are hesitant to put their sensitive data on the cloud, and while data breaches are rare, they do happen. A SaaS vendor has a dedicated team that’s responsible for monitoring and stopping suspicious downloads or malware, however, fraudulent activity may be harder to monitor if a company is storing their data on multiple cloud-based platforms.

By and large, SaaS providers protect your data, but getting additional support or data security services will likely cost extra, which can chip away at your ROI.

The End-User Has Little Control

Hosted services are more like long-term leases, which means the third-party vendor has the final say in software updates and versions. That also means that while there are often preset design templates from which to choose, the end-user doesn’t have full control over design or customization. 

The Difference Between Saas And Managed Services

A managed service is similar to Saas, but it goes one step further. Whereas SaaS manages and delivers cloud-based software products, managed services provide additional networking, hardware support, and data security. 

For example, let’s look at Salesforce, a customer relationship management SaaS. Companies that use Salesforce as their CRM may need additional support in training, reporting, and reaching out to customers. The third-party company they hire to maintain their Salesforce SaaS is their managed services provider or MSP.

In other words, managed services providers offer additional support for your SaaS solution. 

Popular SaaS Products for Enterprises

Choosing the right kind of cloud-based software product for your company will greatly depend on your business model and the needs of your employees and customers. If you want to start moving your daily operations over to the cloud but you aren’t sure which SaaS makes sense for your company, here are the most popular SaaS solutions for companies right now:

Why Your Business Should Use Saas

In this post, we defined SaaS and discussed how it fits into the overall offerings of cloud computing services. We briefly looked at the differences between cloud services, as well as their pros and cons.

Finally, we gave a list of some of the most popular SaaS products for businesses. If you want to lower your overall software costs, improve company efficiency, and embrace the workplace of the future, we highly recommend integrating cloud software services into your business.

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Toby Tinney

Director of Cloud Computing Services at Speaking of Clouds

Toby Tinney is a distinguished authority in the realm of cloud computing, renowned for his deep understanding and insightful perspectives on this transformative technology. Toby has established himself as a go-to expert, dedicated to demystifying the complexities of cloud technology for a broad audience.

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