What Is SAAS?
SaaS can be defined as a software that is owned and managed by one or more providers. A SaaS providers delivers the software on the basis of a set of common code and data definitions. In simple words, SaaS is a software that is leased and maintained by its creator on the basis of the metrics. SaaS is a key component of the cloud computing technology. Cloud service provider takes the responsibility of installing, operating and maintaining the respective type of software application on the company’s behalf.
In the earlier times, people used to purchase the software and load it into a device. However, with the implementation of SaaS, people can subscribe for the SaaS software, the software is based in the cloud and it can be accessed from anywhere through internet. SaaS ensures numerous benefits to individuals and to the business organizations as well.
For the business entities, SaaS eliminates the need of installing and running the applications on their own computers. As a result of this, the cost of hardware acquisition, provisioning and maintenance, installation and support is reduced.
There are many popular examples of SaaS that include Google Apps, Office 365, Citrix, Salesforce, Netflix, Cisco WebEx etc.
Areas where SaaS can be used by the businesses:
- Keeping a track of sales
- Planning
- Invoicing and accounting
- Monitoring performance
- Communicating (includes webmail and messaging)
The difference between traditional software and Software as a Service (SaaS)
- The software is purchased by the users as a package and then it is installed into their computers.
- There might be a limitation on the licenses according to the number of users or devices or depending on where the software can be deployed.
- Users subscribe to the software, generally on a monthly basis instead of purchasing it; this means that there is no upfront cost.
- Users can end their software subscription when they no longer want to use it.
- Applications are used and updated online through the files saved in the cloud instead of individual computers.
Benefits of SaaS
Example of SaaS – Office Software
- Users can subscribe to the required software through the internet and then they can access it online through any computer in the office with the use of the login credentials.
- If the needs of the business change, then an easy switch can be made to the other software that meets the business requirements.
- Every user who wants access to a particular part of the software can be set up as a user.