Software as a service (SaaS) is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted. It is sometimes referred to as “on-demand software”.
SaaS is typically accessed by users using a web browser, though it can also be accessed via desktop applications.
SaaS has become a common delivery model for many enterprise applications, including office suites, CRM systems, and email. It is also becoming popular for software used by individual consumers, such as online accounting applications.
In the SaaS model, the software is licensed on a subscription basis and is centrally hosted. It is sometimes referred to as “on-demand software”.
History of SaaS
The first software as a service (SaaS) application was developed in the early 1990s. It was a customer relationship management (CRM) application that allowed businesses to manage their customer data online. Since then, SaaS has become a popular way for businesses to access software applications. Rather than purchasing and installing software applications on their own computers, businesses can subscribe to a SaaS application and access it online.
Types of SaaS
There are three types of SaaS:
- Application software as a service (ASaaS). This is software that is hosted by the provider and made available to customers over the Internet. Customers can access and use the software, typically through a web browser, while the provider manages the infrastructure and security.
- Platform as a service (PaaS). This is software that allows customers to develop, run, and manage applications without the need for hardware or software installation. Customers can access and use the software, typically through a web browser, while the provider manages the infrastructure and security.
- Infrastructure as a service (IaaS). This is software that allows customers to rent computing resources, such as servers, storage, and networking, over the Internet. Customers can access and use the software, typically through a web browser, while the provider manages the infrastructure and security.
SaaS in detail
SaaS applications…
– are subscription-based, meaning businesses pay a monthly or annual fee to use the application. This allows businesses to avoid the cost and hassle of purchasing and installing software applications on their own computers.
– are typically hosted by the application provider, meaning the provider hosts the application on their own servers. This allows businesses to access the application from any computer with an internet connection.
– include a user interface (UI) that allows businesses to manage their data and access the application’s features. The UI is typically accessed through a web browser.
– are often customizable, meaning businesses can configure the application to meet their specific needs. This allows businesses to get the most out of the application and use it in the way that best suits their needs.
– are updated regularly by the application provider. This allows businesses to access the latest features and updates to the application.
– are secure, meaning the provider takes measures to ensure the security of the application and the data it contains. This allows businesses to feel confident that their data is safe and secure.
To sum up, the main advantages of SaaS are that it is:
- Easier and faster to deploy than traditional software
- Easier to manage and update
- More affordable than traditional software
- Available anywhere there is an internet connection
Why use SaaS?
There are a few reasons businesses may need SaaS.
- The business needs a software application that is not available as a packaged software application. In this case, the business may need to have the software application custom-built, which can be expensive.
- The business needs a software application that can be accessed by multiple users from different locations.
- There is a need for a software application that can be updated regularly with new features and functionality.
- The business is looking for a software application that is affordable and does not require the purchase of hardware or software licenses.
Today the most prominent SaaS developers are Salesforce, Oracle, SAP, Microsoft, Adobe, IBM, and Workday.
Challenges of SaaS
The challenges of SaaS are many and varied.
- One of the biggest challenges is that SaaS requires a different way of thinking about software. With traditional software, the customer buys a license to install the software on their own computers. With SaaS, the customer doesn’t own the software, they rent access to it. This requires a different way of pricing and packaging the software.
- Another challenge is that SaaS requires a reliable and fast internet connection. If the connection is slow or unreliable, the customer will not be happy with the service.
- SaaS can be more expensive for the customer than traditional software. This is because the customer is paying for the convenience of not having to manage the software themselves.
- Finally, SaaS can be difficult to implement and manage. The customer needs to have a good understanding of how the software works and how to use it. If they don’t, they will need to hire someone to manage the service for them
- Also, there is always a risk that the SaaS provider could go out of business, which would leave the customer without access to their data or the ability to use the software.
It is estimated that the global market for SaaS will grow from $46.2 billion in 2017 to $83.4 billion by 2022. This growth is being driven by the increasing demand for cloud-based applications and the need for organizations to reduce their IT costs.
SaaS is also becoming more popular with small businesses. A recent study found that small businesses are increasingly turning to SaaS to meet their needs for applications such as CRM, HR, and accounting. This is because SaaS is more affordable and easier to use than traditional software.
The future of SaaS looks promising, and it is likely to continue to grow in popularity in the years to come.