Software as a Service (SaaS)

SaaS is a cloud-based software delivery model. The cloud provider creates and maintains cloud application software, offers automatic software upgrades, and makes software available to its clients on a pay-as-you-go basis through the internet.

The public cloud provider manages all hardware and conventional software, including middleware, application software, and security.

As a result, SaaS clients may significantly reduce expenses, implement, expand, and update business solutions faster than on-premises systems and software, and anticipate the total cost of ownership with higher precision.

The original generation of SaaS solutions was compartmentalized, rigid, and built to handle a specific business problem in the early 2000s. SaaS has developed tremendously since then. Modern cloud apps may span and integrate everything from accounting, human resources, procurement, and supply-chain activities to commerce, marketing, sales, and service solutions.

How Does Saas Software Work?

SaaS reduces initial user costs by eliminating the need to purchase software permanently or invest in a robust on-premises IT infrastructure as with traditional software. However, service performance depends on your internet connection speed, so SaaS customers must invest in high-speed network hardware. 

Examples of SaaS include application service providers (ASPs) such as Google Docs and Microsoft Office 365 and enterprise services that provide personnel software, e-commerce systems, customer relationship management tools, and integrated development environments (IDEs)

Software vendors typically choose one (or both) of two common deployment models in your data center or through public cloud service providers such as AWS, Azure, and IBM Cloud that manage the cloud environment where your SaaS solution resides. Hosted. SaaS applications take advantage of multitenant architecture to isolate customer data.

The SaaS provider takes care of software upgrades, bug fixes, and other general app maintenance while users interact with the software through a web browser.

SaaS solutions are generally fully functional but sometimes incorporate custom integration via application programming interfaces (APIs) — like REST or SOAP—to connect to other functions. 

The nature of SaaS makes it easier for providers to roll out new features to their customers. Most SaaS applications are preconfigured plug-and-play products where the SaaS provider manages everything behind the app, including:

  • Hardware Components, like networking, storage, and data centre servers
  • Platforms, like virtualization, the operating system, and middleware 

Software Requirements, like runtimes, data, and the app itself

CPaaS vs IaaS vs SaaS Platform

Platform as a Service (PaaS) | Infrastructure as a Service (IaaS) | Software as a Service (SaaS) The term as-a-service generally refers to a solution managed by someone else so you can focus on what's important, like iterative improvements of custom apps.

In addition to SaaS, other keys as Service options include Infrastructure as a Service (IaaS) and Platform as a Service (PaaS).

Infrastructure as a Service (IaaS)

IaaS means that the provider manages the Infrastructure (real servers, networks, virtualization, storage) through the cloud. Users can access the Infrastructure via APIs or dashboards, and the Infrastructure is rented.

Users manage operating systems, apps, middleware, etc. Vendors provide hardware, networks, disks, storage, and servers. The vendor is responsible for outages, repairs, and handling hardware issues.

Platform as a Service (PaaS)

PaaS provides users with hardware and application software platforms from external service providers. PaaS is ideal for developers and programmers as users manage their real apps and data.

PaaS provides users with a platform for developing, running, and managing their apps without building and maintaining the Infrastructure and environment needed to run them. 

Software as a Service (SaaS) Company

Software vendors deploy SaaS-style software applications to meet various business needs, from simple business applications to complex enterprise resource planning (ERP) suites.

Some SaaS companies and products include: 

  • SAP's enterprise resource planning (ERP) software
  • Paychex's human resource software
  • CA Technology's enterprise software
  • Atos messaging SaaS solution
  • Salesforce's customer relationship management (CRM) software
  • Slack's messaging service
  • Microsoft Office 365
  • Dropbox's file storage service

Advantages Of SaaS Service

Gain access to sophisticated applications. To provide SaaS apps to users, you don't need to purchase, install, update or maintain any hardware, middleware, or software.

SaaS makes even sophisticated enterprise applications, such as ERP and CRM, affordable for organisations lacking the resources to buy, deploy, and manage the required infrastructure and software. 

Pay only for what you use. You also save money because the SaaS service automatically scales up and down according to the level of usage.

Other advantages of a modern, all-inclusive SaaS system include:

Use Free Client Software 

Users can run most SaaS apps directly from their web browser without downloading and installing any software, although some apps require plugins. This means you don't need to purchase and install special software for your users.

Mobilise Your Workforce Easily

SaaS makes it easy to "mobilize" your workforce because users can access SaaS apps and data from any Internet-connected computer or mobile device.

You don't need to worry about developing apps to run on different types of computers and devices because the service provider has already done so. In addition, you don't need to bring special expertise onboard to manage the security issues inherent in mobile computing.

A carefully chosen service provider will ensure the security of your data, regardless of the type of device consuming it.

Access App Data From Anywhere.

With data stored in the cloud, users can access their information from any Internet-connected computer or mobile device. And because app data is stored in the cloud, no data is lost in case of a user's computer or device failure.

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