Software as a Service | SaaS

SaaS is also known as "On-Demand Software." It is a software distribution model in which services are hosted by a cloud service provider. These services are available to end-users over the internet, so the end-users do not need to install any software on their devices to access these services.

Characteristics of SaaS:

• Web-based Delivery: SaaS apps can be accessed from anywhere with an internet connection because they are supplied over the internet, often through a web browser. Users no longer need to install and maintain software programs on their local machines as a result.
• Multiple Users or "tenants" can access SaaS applications from a single instance of the program thanks to the concept of multi-tenancy. As a result, the provider can serve several clients with the same application without administering unique program instances for every client.
• Automatic Updates: SaaS providers are in charge of keeping the software up to date and making sure that everyone has access to the newest features and security patches. Users are no longer required to manually install updates or fixes as a result.
• Scalable: SaaS systems are scalable, which can readily grow or shrink in response to user demand. This frees up enterprises from worrying about infrastructure or licensing fees and lets them add or remove users as needed.
• Pricing on a Subscription Basis: SaaS programs are frequently sold using a subscription-based pricing model, in which customers pay a monthly or yearly price to access the program. As a result, companies won't need to invest significantly in software licenses upfront.
• Data Security, including data encryption, access restrictions, and backups, is the responsibility of SaaS providers. Users no longer need to handle their own data security because of this.

In conclusion, SaaS is a type of cloud computing where software applications are distributed online.

Web-based SaaS solutions provide multi-tenancy, providing data protection, automatic updates, scalability, and subscription-based pricing. Businesses can access and use software applications cost-effectively with SaaS without having to worry about infrastructure or program upkeep.

Access to Software Applications Over the Internet:

• The majority of the time, SaaS companies host software programs on their own servers and provide them online. Using their login information, users can access the software through a web browser or mobile app, authenticating and gaining access to it.
• Users don't need to install or maintain any software on their local machines because the provider hosts and maintains it. As a result, users may easily access the program from any location with an internet connection and on any device that can run mobile apps or web surfing.
• All users have access to the most recent features and security updates because the provider is in charge of keeping the program updated and maintained. Users are no longer required to manually install updates or fixes as a result.
• Users often pay a monthly or yearly charge to access the software through subscription-based SaaS providers. Because they don't have to make a significant upfront investment in software licenses, businesses are able to budget for their software costs more effectively as a result.
• In general, SaaS gives enterprises a practical way to use and access software programs without having to worry about infrastructure or software upkeep. Providers are in charge of keeping the software up to date so that all users have access to the newest features and security patches. Users can access the software from any location with an internet connection.

Pricing Models: Subscription or User-Based

• Most SaaS companies use a subscription-based pricing structure; however, some may also provide a usage-based pricing structure. Users that choose a subscription-based pricing model for their software access pay a set monthly or yearly charge.
• The cost may vary according to the usage of the software's capabilities or the number of users. Businesses benefit from predictability and consistency thanks to this strategy because they can more efficiently budget for their software expenses.
• In a usage-based pricing model, the costs are determined by how the program is actually used, such as the volume of data processed, the number of API requests, or the number of transactions.
• For companies with erratic usage patterns or those that only want the program sometimes, this model may be more adaptable and economical.
• According to their business strategy and the demands of their clients, SaaS providers may offer either a subscription-based or a usage-based pricing plan. SaaS offers organizations a cost-effective option to access and use software products without having to worry about infrastructure or software maintenance, regardless of the price model.

Services Provided by SaaS:

Business Services - SaaS Provider provides various business services to start up the business. The SaaS business services include ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), billing, and sales.

Document Management - SaaS document management is a software application offered by a third party (SaaS provider) to create, manage, and track electronic documents.

Examples: Slack, Samepage, Box, and Zoho Forms.

Social Networks - As we all know, social networking sites are used by the general public, so social networking service providers use SaaS for their convenience and handle the general public's information.

Mail Services - To handle the unpredictable number of users and load on e-mail services, many e-mail providers offer their services using SaaS.

Collaboration Tools: SaaS companies provide collaboration solutions that let teams collaborate effectively no matter where they are physically located. Platforms for project management, apps for team communication, and file-sharing services are some of these resources.

Examples include Slack, Microsoft Office 365, and Google Workspace (formerly G Suite).

Human Resources Management: SaaS-based HR management systems give companies tools to simplify key HR procedures, such as employee onboarding, payroll administration, timekeeping, performance reviews, and employee self-service portals.

Workday, BambooHR, and ADP Workforce Now, as examples.

Customer Support and Help Desk: SaaS platforms provide customer support and help desk solutions that enable firms to manage customer inquiries, track support tickets, and promptly address customer issues.

For instance, Salesforce Service Cloud, Freshdesk, and Zendesk.

Marketing and Sales Automation: To increase productivity and boost income, firms can automate marketing campaigns, lead generation, customer relationship management, and sales activities using SaaS marketing and sales automation technologies.

Examples include Marketo, Pardot, and HubSpot.

E-commerce Platforms: SaaS-based e-commerce platforms make it simpler for businesses to launch and run online storefronts, maintain product catalogs, handle payments, and keep track of orders.

Examples include WooCommerce (a WordPress plugin), BigCommerce, and Shopify.

Advantages of SaaS Cloud Computing Layer

1. SaaS is easy to buy

SaaS pricing is based on a monthly fee or annual fee subscription, so it allows organizations to access business functionality at a low cost, which is less than licensed applications.

Unlike traditional software, which is sold as a licensed base with an up-front cost (and often an optional ongoing support fee), SaaS providers are generally pricing the applications using a subscription fee, most commonly a monthly or annual fee.

2. One to Many

SaaS services are offered as a one-to-many model means a single instance of the application is shared by multiple users.

3. Less hardware required for SaaS

The software is hosted remotely, so organizations do not need to invest in additional hardware.

4. Low maintenance required for SaaS

Software as a service removes the need for installation, set-up, and daily maintenance for organizations. The initial set-up cost for SaaS is typically less than the enterprise software. SaaS vendors are pricing their applications based on some usage parameters, such as the number of users using the application. So SaaS does easy to monitor and automatic updates.

5. No special software or hardware versions are required

All users will have the same version of the software and typically access it through the web browser. SaaS reduces IT support costs by outsourcing hardware and software maintenance and support to the IaaS provider.

6. Multidevice support

SaaS services can be accessed from any device, such as desktops, laptops, tablets, phones, and thin clients.

7. API Integration

SaaS services easily integrate with other software or services through standard APIs.

8. No client-side installation

SaaS services are accessed directly from the service provider using an internet connection, so they do not need to require any software installation.

Disadvantages of SaaS Cloud Computing Layer:

1) Security

Actually, data is stored in the cloud, so security may be an issue for some users. However, cloud computing is not more secure than in-house deployment.

2) Latency issue

Since data and applications are stored in the cloud at a variable distance from the end-user, there is a possibility that there may be greater latency when interacting with the application compared to local deployment. Therefore, the SaaS model is not suitable for applications whose demand response time is in milliseconds.

3) Total Dependency on the Internet

Without an internet connection, most SaaS applications are not usable.

4) Switching between SaaS vendors is difficult

Switching SaaS vendors involves the difficult and slow task of transferring very large data files over the internet and then converting and importing them into another SaaS also.

Popular SaaS Providers

The below table shows some popular SaaS providers and services that are provided by them -