8 December

All about SaaS

Software as a Service (SaaS) is a software delivery model that offers access to applications through the internet. Instead of installing software, you simply could access it at an online location. These applications are cloud-based and can be used for a wide range of business scenarios.

SaaS gives entrepreneurs an opportunity to discover a new way to run their business and slash operational costs. It becomes easy for the employees to access all the data online in a more organized manner, through a SaaS-based applications functioning as a web-based service.

A very easy to understand example is that of a bank. Every customer is served in a similar way and the overall service scale of the bank is huge. However, every customer receives a similar level of service from the bank in complete isolation from other customers. Thus, the bank’s online services are actually a portal that grants access to a SaaS service delivery platform.

 

Why SaaS is So Popular?

The most important reason of the popularity of SaaS model is the ease of access to core business functionality software. This greatly reduced customer acquisition costs. With software as a service, developers can support various customers with a single installation of the platform. This approach, known as multitenancy, allows organizations to scale up without any replacement of costly infrastructure.

 

Benefits of Software as a Service:

SaaS Offers Huge Cost Savings

One main advantage of SaaS is its cost effectiveness. SaaS delivery models are cheaper than traditional models to begin with. With good SaaS, there is no need for installation, no need of purchasing new equipment and no worry about support, as support is often bundled in the price structure.

Updates are Automated

All the updates are automatically implemented and instantly available to existing customers. The good news is that these updates are often free of charge. There is no requirement for purchasing new software and all the updates are automatically deployed by the cloud provider.

Cross Device Compatibility

This is another great advantage of software as a service. It is accessible from any device, anytime, anywhere. In fact, the modern SaaS systems are device independent and the users could use any internet enabled device to access the services. However, the essential requirement is that the device should be able to provide enough processing and storage capabilities to run the SaaS programs.

Easy Customization

SaaS enables each user to easily customize applications that suit their businesses processes without affecting the common infrastructure. These customized applications are unique to individual users, even within the same organization. SaaS providers manage all upgrades and updates which results in lower adoption cost and decrease customer risk as well.

Scalability

SaaS providers usually allow several subscription options and the flexibility to alter subscriptions as and when required. Thus, a business could start small and gradually add in capacity as the need arises.

Convenient Software and Hardware Updates

SaaS providers deal with the software and hardware updates. In many cases, this means deploying upgrades centrally to the hosted applications. The vendor is responsible for taking care of just about all things.

Multitenant Architecture

Software as a service often has a multitenant architecture in which all applications and users share common and centrally-maintained infrastructure. This is helpful for the vendors as it allows for faster innovation and minimal deployment time and risk.

No licensing Hassles

Traditional software models usually need businesses to buy licenses, based on the number of users. On the other hand, there is no such hassle in the SaaS. A simple upgrade in the SaaS services delivery agreement could accommodate additional users.