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What Is SaaS (Software as a Service)?

Last modified: May 12, 2021
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Estimated reading time: 2 min

SaaS (Service as a Service) is a wider range of cloud-based services, as compared to IaaS and PaaS. Everyone can easily access it on any device via an internet browser. All the infrastructure such as middleware, software, storage, and others are located in the data center of the provider of SaaS. Therefore, It is often used by end-users or organizations that are required to run an application in a short period of time.  

Sometimes we call SaaS as ‘software on-demand’ where it can be accessed in critical demanding situations in business. The users can save up on the upfront cost as well as additional charges. Moreover, the provider often offers SaaS on a pay-as-you-go basis and the pricing may vary according to different providers. Some common examples are office tools such as Microsoft Office 365, email, calendaring, and so on.

Use Cases

Some common use cases of SaaS:

1. Email

SaaS email has been overused in marketing over the past decade because it is undeniably a great tool to attract customers. There are several types of SaaS emails which include operational emails, welcome emails, activation emails, newsletter emails, and a few more. These emails help businesses to operate smoothly and even generate more sales when following the right tactics.

2. Sales Management

SaaS sales management systems possess a variety of features that cut down the workload of the employees. This helps them to focus on the other important factors for business growth. The outcomes of using the systems include automated workflow, accurate forecasting, better information organization, and a lot more.

3. Customer Relationship Management (CRM)

SaaS providers provide 24/7 access to SaaS CRM to improve business performance. SaaS CRM is popular because it does not include installation and maintenance costs. Furthermore, it ensures the daily data to be backed up securely on the cloud without needing to be stored in the company’s servers.

Advantages (Pros) of SaaS

Accessibility

People can access the application of SaaS over the internet, usually via a browser. A wide range of devices can access the SaaS anytime and anywhere in the world. Thus, it is comparatively more accessible than traditional enterprise software.

Scalability

Users can scale and change their licensing model to access more or fewer services depending on the needs of the business at that time. So, this cuts down the extra expenditures on unnecessary services.

Low Initial Cost

SaaS follows a pay-as-you-go basis and it does not have an initial license fee. Thus, it helps to reduce the upfront costs on IT infrastructure that includes hardware and software maintenance.

Quick Deployment

The SaaS application is already always ready to use on the cloud. The users only have to register to use the application. Therefore, it helps to speed up the startup process.

Access to Sophisticated Applications

SaaS allows users to gain access to sophisticated applications. There is no need for users to purchase, install, maintain, or update the hardware and software. Therefore, he organizations will no longer need to buy, deploy, and manage the infrastructure, but are still able to access ERP, CRM, or other sophisticated applications.

Disadvantages (Cons) of SaaS

Inaccessible during Downtime

SaaS is a multi-tenant architecture. If the service is down, every single one of the customers will not be able to access the applications. This can actually decrease productivity in business performance.

Limited Features Available

Besides, the customization bandwidth of Software as a Service is limited, making the services provided unable to cover all the business use cases. Customers will need to compare several SaaSs to find out the most suitable one for their business among the providers.

Risk of Termination

If the provider suddenly terminates the service due to some reasons, the customer will not be able to continue using the service and might lose all data shared. Luckily, usually, if the provider’s company went bankrupt, users will have enough time to recover their data.

If you would like to know more about cloud computing, you can visit our website to read IaaS and PaaS.
For more articles from us, please visit Knowledge base.

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