What is Software as a Service

SAAS Software

Table of Contents

What is Software as a Service?

Software as a service (SaaS) is a software distribution model where a third-party provider hosts applications and makes them available to customers within the Internet.

SaaS is one of three main groups of cloud computing, alongside infrastructure as an ongoing service (IaaS) and platform as a service (PaaS). SaaS is closely associated with your application service provider (ASP) and on need computing pc software delivery models. The application that is hosted model of SaaS is just like ASP, where the provider hosts the customer’s software and provides it to approved end-users on the internet. In the software on-demand SaaS model, the provider gives customers network-based access to a single copy of an application that the provider specifically made for SaaS distribution.

software as a service
software as a service

The application’s supply code is the same for all customers when new features or functionalities are rolled out, they are rolled out to any or all customers. Based upon the service level contract (SLA), the customer’s information for every single model may be stored locally, in the cloud or both locally plus in the cloud. Organizations can integrate SaaS applications with other software application that is using interfaces (APIs). For example, the company can write unique pc software tools and use the SaaS provider’s APIs to incorporate those tools with the SaaS offering.

There are SaaS applications for fundamental business technologies, such as email, sales management, customer relationship management (CRM), financial management, individual resource management (HRM), billing and collaboration. Company SaaS providers include Salesforce, Oracle, SAP, Intuit, and Microsoft.

software as a service
CRM software

Benefits of software as a service ( SAAS )

SaaS removes the requirement for organizations to install and run applications on their own computers or in their data centers that are own. This eliminates the cost of hardware acquisition, maintenance, and provisioning, as well as software licensing, installation and support. Other features of the SaaS model consist of:

  • Flexible payments: Rather than buying software to set up, or hardware that is additional support it, customers subscribe to a SaaS offering. Generally, they pay for this service for a month-to-month foundation using a model that is pay-as-you-go. Transitioning costs up to a recurring running cost allows many companies to exercise better and more budgeting that is predictable. Users also can end SaaS offerings at any time to stop those recurring costs.
  • Scalable usage: Cloud services like SaaS offer high straight scalability, which gives customers the choice to access more, or less, services or features on-demand.
  • Automatic updates: Rather than purchasing software that is new customers can count on a SaaS provider to automatically perform updates and patch administration. This further decreases the burden on in-house IT staff.
  • Accessibility and determination: Since SaaS applications are delivered over the Internet, users can access them from any Internet-enabled device and location.

Disadvantages of SAAS

SaaS additionally poses some disadvantages that are potential. Businesses must depend on outside vendors to offer the application, keep that software up and running, track and report billing that is accurate to facilitate a secure environment for the company’s data. Providers that experience service disruptions, impose undesired changes to program offerings, experience a security breach or any other issue could have a profound effect on the customers’  ability to make use of those SaaS offerings. As being a result, users should understand their SaaS provider’s service-level agreement, and ensure it is enforced.