SaaS (Software as a Service)

Software as a Service, or SaaS, is a software distribution model that is based in the cloud. Under this model, a cloud provider develops and maintains cloud-based applications, delivers automatic software updates, and provides the software to customers on a pay-as-you-go basis over the Internet.

Public cloud providers manage all hardware and traditional software, including middleware, application software, and security. As a result, SaaS customers can reduce costs dramatically, implement, scale, and upgrade business solutions faster than by maintaining local systems and software, and more accurately estimate total ownership costs.

In short, SaaS is a software distribution model in which a cloud provider hosts applications and makes them available to end-users over the Internet.

How does Software as a Service work?

Software as a Service (SaaS) operates via the cloud. A software provider hosts the application and associated data using their own servers, databases, network, and computing resources. Alternatively, an Independent Software Vendor (ISV) can engage a cloud provider to host the application in the provider's data centre, utilising cloud hosting.

Users can access the application from any device with an internet connection. SaaS applications are usually available through web browsers, meaning users do not need to install or maintain software. Instead, they only pay for a subscription and can use the software immediately.

Benefits of SaaS

There are numerous reasons why companies are transitioning to cloud-based SaaS solutions. Some of these include improved efficiency, greater cost-effectiveness, scalability, universal access to services, and automatic updates. Below, we delve into these benefits in more detail.

Flexibility

No large investments need to be made for software (and associated hardware). Customers only need to subscribe to a SaaS company. The shift from costs to recurring business costs enables many companies to budget better and more predictably. Users can also try SaaS offerings before subscribing, often with a limited version, without incurring any costs.

Scalability

A subscription usually provides access to services with a certain number of licenses per month, and companies only pay for what they need. This enables companies to tailor the number of features and licenses to their current needs.

Automatic updates

Instead of buying new software, customers can rely on a SaaS provider to automatically update it. This is one less concern for internal personnel.

Accessibility

Since SaaS vendors deliver applications via the Internet, users can access them from any device and location with Internet access.

Disadvantages of SaaS

Software as a Service does have some disadvantages. The following are some:

Security

SaaS providers aren't responsible for data security when they use the SaaS model for their applications. Instead, it's up to the company to ensure that appropriate security measures are in place.

Little control

If the provider releases a new version of an application, it's rolled out to all customers, whether they want the newer version or not.

Examples of SaaS Products

The SaaS market comprises many software vendors and products, ranging from small businesses to giants like AWS and Google. Here are some examples of SaaS products:

• Salesforce

• Dropbox

• Mailchimp

• Hubspot

• Shopify

• Adobe Creative Cloud

• Slack

Other "as a Service" Models

There are now over 50 different "as a Service" models, and here are 10 of them: 

• Infrastructure as a Service (IaaS) - provides IT infrastructure to companies of all sizes, with setup and maintenance outsourced to third parties.

• Platform as a Service (PaaS) - enables users to develop, test, and run applications without having their own platform.

• Desktop as a Service (DaaS) - virtual desktop environment.

• Security as a Service (SECaaS) - a security service offered as a subscription.

• AI as a Service (AIaaS) - allows developers to experiment with machine learning and AI within this environment.

• IoT as a Service (IoTaaS) - a pay-as-you-go service for IoT devices, using only the devices and resources needed at that moment.

• Database as a Service (DBaaS) - an online database without the user downloading or hosting anything.

• Managed Software as a Service (MSaaS) - software to support and maintain developed apps.

• Network as a Service (NaaS) - rented network functionality from a third party that owns the infrastructure, usually an Internet Service Provider (ISP).

• Video as a Service (VaaS) - cloud-hosted video calling.