SaaS Article -What-you-need-to-know-about-the-difference-between-SaaS-and-Cloud-Computing(source: SaaS Industry)

What you need to know about the difference between SaaS and Cloud Computing

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At a Glance

Cloud computing and Software-as-a-Service (SaaS) may appear to be the same thing: a product or service available over the internet. As both terms indicate that the items or service would be transported away from the customer’s location. But both have differences. The phrases cloud and SaaS are frequently confused, but they should not be. SaaS is a type of cloud service, but a cloud contains components of its own.

Software-as-a-Service (SaaS) and cloud computing may appear to be the same thing: a product or service accessible over the internet. After all, both words imply that the goods or service will be delivered off-site. These two words, however, relate to two very distinct entities. While a SaaS-based application will almost surely be cloud-based, a cloud-based service may or may not be a SaaS.

Cloud computing includes software as a service (SaaS). Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS) are the three major components of cloud computing (PaaS).


A SaaS-based application is any program you use that isn’t installed on your computer. With few exceptions, this implies that most SaaS-based goods are accessed using a web browser or similar application and are housed in the cloud. SaaS is not a plugin and does not reside on your computer or mobile device.

Since the 1990s tech boom, when a need for a more extensive range of cost-efficient computing led to software being hosted centrally and disseminated to meet the demands of quick scalability, frequently internationally, for developing enterprises, SaaS-based solutions have been widely accessible.

Because there are generally fewer expenses involved with implementing and maintaining SaaS-based systems, SaaS may often enhance total ROI. The cost-effectiveness of SaaS-based software has remained one of the major benefits of SaaS-based software in the information age, decreasing TCO (Total Cost of Ownership) and improving profits for B2B and B2C enterprises.

Additionally, there are several other benefits to using SaaS. With SaaS, you’ll always be running the most recent, most up-to-date version, with no need to update. The benefits that SaaS delivers to consumers are growing and improving as well. Google G Suite, Office 365, Salesforce, Cisco Webex, and Zendesk are examples of SaaS-based apps. 


Cloud computing is defined as “a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources that can be rapidly provisioned and released with minimal management effort or service provider interaction,” according to the official definition provided by the National Institute of Standards and Technology (NIST). Networks, servers, storage, applications, and services are examples of computing resources.

According to NIST, the cloud model consists of five essential characteristics: measurable service, on-demand service, resource pooling, rapid elasticity, and extensive network access. Private cloud, public cloud, community cloud, and hybrid cloud are the four deployment types. At the same time, Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and, of course, SaaS are the service models.

SaaS is essentially a subset of cloud computing. It’s worth noting, however, that not all SaaS models are cloud-based. SaaS products or apps may be developed on a local terminal and then delivered to a cloud-based server. A web browser is used to access and use the product itself.

Infrastructure as a service (IaaS) allows you to use your complete infrastructure without using on-premises servers. AWS, GCP, and Azure are all primarily IaaS providers. In the cloud, your infrastructure. Many services inside these broad cloud platforms, however, might be classified as PaaS.

Platform as a service (PaaS) is built on top of IaaS and provides the components or foundation for developing and managing apps. AWS Elastic Beanstalk, AWS Lambda, and Zoho are some examples. Developers frequently use the frameworks provided by PaaS to speed up the development of their apps.

Some examples of Cloud-based platforms are Amazon Web Services (AWS), Google Cloud Platform (GCP), Microsoft Azure, IBM Cloud, Oracle Cloud Infrastructure (OCI).

While SaaS and cloud are not synonymous, SaaS appears to be the preferred cloud product model for SMBs and large businesses wanting to extend their operations. Furthermore, the SaaS sector is expanding, with new martech and other technologies regularly developing to service firms and startups. 

Now that we’ve entered the digital era, one thing cloud companies do that on-premises products don’t is collect vast quantities of anonymized data and utilize it in their software algorithms to improve the user experience; for example, helping their vehicles drive more safely (Tesla), recommending new music that you are likely to listen to (Spotify), or it can assist you in identifying the underlying cause of a network problem more quickly (LogicMonitor, humble brag). The continuous rise of SaaS-based systems is creating that future. 

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