Software has changed a lot over the last 20 years. Businesses and consumers can now get many applications directly over the internet, so they don’t have to buy programs, install them on individual computers, and manually update them. This model is called Software as a Service or SaaS and it is one of the most common types of cloud computing.
Email, project management, accounting, CRM, collaboration, and business intelligence – these are now standard digital operations that are part of SaaS applications. It is important for businesses that are trying to figure out how to build their technology infrastructure to understand what SaaS is, how it works, and the pros and cons of SaaS.
What Is SaaS in Cloud Computing?
In cloud computing, the term SaaS (software as a service) refers to use of a software application delivered through a cloud (IT infrastructure). A SaaS application is hosted by a service provider and offered to customers over the Internet.
In general, the web-based software is accessed by customers remotely using a web browser or customer specific client application rather than being installed or operated from one’s own servers or computers. The infrastructure including servers storage upgrades and maintenance is managed by the SaaS vendors.
That changes the traditional relationship between enterprises and software. Rather than purchase an unlimited license to software and run the application themselves, customers typically subscribe to a service and pay based on a plan they select.
How is SaaS delivered?
A SaaS platform is typically built on cloud infrastructure managed by the provider. The application and data are hosted in the provider’s cloud environment.
When a customer logs in, the application is served via an internet connection. It’s the provider’s responsibility to maintain the underlying systems and deploy software updates.
A Simple SaaS Illustration
Suppose you take an online project management application. In traditional software the firm might buy licenses, install them on the computers, host a server and update it manually.
With SaaS employees are ready to enter via web browser, to always use the latest release of application and to work from anywhere. A service is doing much of technical administrating.
This model is especially handy for organizations with distributed teams, as users can access cloud-based applications from multiple devices and locations, depending on the provider’s requirements and security controls.
SaaS features
SaaS is different from traditional software in a few ways.
Internet connection
SaaS applications are usually accessed via the internet and not installed on each customer’s local infrastructure.
Pricing of Subscriptions
Most SaaS vendors will have a subscription pricing model. Customers can pay monthly or yearly, though the actual pricing structures vary widely between services.
Centralized Updates
Application updates and maintenance are usually the provider’s responsibility. This means that customers do not typically have to install each new version manually.
Expandability
SaaS platforms can often scale to an organization’s changing needs. Depending on the service, businesses can add users, increase capacity or move to different plans.
Managed Infrastructure
The SaaS provider manages much of the infrastructure required to run the application. This can reduce the level of technical administration required from the customer.
SaaS vs. IaaS vs. PaaS
SaaS is one of the three common cloud service models.
Infrastructure as a Service (IaaS) brings the customer with the fundamental computing infrastructure virtual machines, networking and storage. The customer usually has greater responsibility to set up and control the software environment.
Platform as a Service (PaaS) A platform that offers a setup for application development and deployment.
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Software as a service ( SaaS ) builds on this and not only brings a ready end end user application.
The simplest way to distinguish IaaS and PaaS and SaaS is IaaS offers the infrastructure, PaaS gives platform, and SaaS brings application.
SaaS for Businesses: Advantages
Convenience is one of the biggest benefits of SaaS. Businesses can deploy an application without having to build the infrastructure to host it themselves.
SaaS can also help reduce some of the initial costs since organizations may not have to purchase servers or perpetual software licenses for each application.
Another benefit is accessibility. In many cases, employees can access the same cloud application from their office, home, or elsewhere, as long as they have the right Internet access and the right credentials to get in.
SaaS can also speed up deployment of software. Instead of pushing applications out to hundreds of individual PCs, an organization can often just create user accounts and set up access through the SaaS vendor’s platform.
Some Possible Disadvantages of SaaS
SaaS is not the right answer for all organizations.
Reliance on the Internet
Availability for SaaS applications can be affected by connectivity issues as they are generally accessed online. Some applications offer offline capabilities, but this varies from provider to provider.
Privacy and data issues
Businesses may have important information in a third-party SaaS environment. So organizations need to understand how the provider deals with data, security, privacy, retention and access.
Vendor Dependency
It is often hard to switch providers if you are deeply embedded in a given SaaS environment. Switching costs include: data migration integrations new user training and operational upheaval.
Cost of Running
Using subscription prices can reduce upfront costs but the fees can add up quickly, over a period of time when the numbers of users and services increases.
Why SaaS Security Matters
Security is a big consideration when selecting a SaaS provider. Businesses should look at authentication options, encryption practices, control of access, audit capabilities, backup procedures, compliance requirements, and incident-response processes.
Organizations should also not think that the provider takes care of everything security-wise. SaaS security is typically a shared responsibility between the provider and the customer. Customers are still responsible for areas such as user permissions, passwords, authentication policies and the proper handling of their own data.
Why SaaS is more important than ever
SaaS is much more than a convenience factor. It changed the way businesses buy, deploy and manage technology.
Startups can tap into sophisticated business applications without having to build out large IT infrastructures from scratch. Big companies can get tools that are specific to departments like marketing, finance, human resources and customer support.
The model has also motivated software suppliers to continually enhance their offerings. Instead of releasing a large new version of their product over a few years, SaaS providers are able to publish regular updates and bring in additional functionalities during a subscription period.
Things to Consider Before Selecting SaaS for Business
Before selecting a SaaS app, organizations should consider factors including the stability of the provider, how data is kept secure, the pricing structure, how the app can be integrated with other applications, and what a provider’s policy is on data export.
It is also important to see whether the software addresses a real business problem. If you buy lots of SaaS products without a strategy, you’ll end up paying for stuff you don’t need, you’ll end up with duplicate functionality and you’ll end up with complicated workflows.
Sometimes a handful of well integrated applications are more beneficial than a bucket full of disparate tools.
Conclusion
To define SaaS in cloud computing, it is a software delivered over the internet where in the vendor takes care of all the infrastructure and software maintenance. It adds new points of concern such as security, ongoing costs, connectivity and reliance on a vendor. It also offers the benefit of access anywhere scalability lesser lead time and reduced infrastructure management.
As businesses transition more toward being cloud-driven, SaaS will be a significant part of modern technology infrastructure. The real value, however, is not merely moving software to the cloud. That comes from choosing services that increase productivity, align with business goals, protect data and integrate seamlessly with the rest of a company’s technology ecosystem.
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