Seven things you should know about SaaS (Software-as-a-Service)

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At a Glance

SaaS, or Software-as-a-Service, is a cloud-based technique of delivering software to consumers. Instead of buying and installing a program, SaaS consumers subscribe to it. A SaaS application may be accessed and used from any Internet-connected device. The program itself is hosted on cloud servers that may be located distant from the user’s location.


A browser or an app can be used to access a SaaS application. SaaS apps include online email apps that users access through a browser, such as Gmail and Office 365.

The distinction between SaaS and installing software on a user’s PC is similar to the difference between watching a TV show online and buying all of the seasons on DVD.

Now that the concept of SaaS has been explained, we’ll move on to seven things that one should know about SaaS. 

I) Security

When all the data and software are stored on the cloud, there is a risk element. So, is SaaS safe? The answer is yes.  

SaaS suppliers’ security solutions are of the greatest caliber, and the risk of corporate espionage is nearly non-existent. For those clients who demand it, some SaaS providers can even keep crucial data inside firewalls. This is another consideration for potential users, and many may want to retain specific data and apps on their servers for security reasons.

II) Pricing

It’s usually a pay-per-use subscription model. The most popular pricing strategy is per user each month. Another factor is the cost per transaction. Several solutions are available, all of which are flexible and adaptable to the solution’s actual application. One way that SaaS differs from outsourcing is in this regard. 

Because the company isn’t locked into a three-year fixed-rate contract or hasn’t made a substantial upfront investment in hardware and software licensing, it may test a solution with minimum risk. Customers that sign multi-year contracts with SaaS providers, on the other hand, typically receive considerable savings.

This price model may also make SaaS a preferable option for fast-growing businesses that expect a significant increase in the usage of their IT infrastructure and services with substantial yearly demand variations, as is the retail case.

III) Types of SaaS Services

Salesforce Inc. (CRM), Recordia (interaction recording), Taleo Corp. (human resources), NetSuite (SMB Suite), eComFax (Virtual Fax), and RightNow Technologies Inc. (CRM) are just a few of the companies that offer a wide range of services that cover end-user functionality as well as IT infrastructure, network security, email, and company collaboration.

These services are provided through the Internet and are often accessible via a browser on a computer or a mobile phone. This makes them excellent for on-the-go assistance for users or sales professionals, for example. There are several interfaces for mobile employees already available; for example, Salesforce is aimed at the sales community, which is, of course, mobile.

IV) SaaS Market

The market is in stages of rapid expansion, having reached a critical juncture in the traditional high-tech market scenario. It is distinguished by a vast number of relatively modest merchants who are regularly entering. Some renowned companies, such as Amazon Web Services, Microsoft, and IBM, are assisting their business partners, particularly independent software manufacturers, in growing the number of SaaS providers.

V) SaaS’s Development

Stand-alone SaaS services initially gained traction in businesses by selling directly to business units, with little or no IT participation or understanding in many situations. 

The sector is currently in the growing stage. IT is either contracting for services directly or working with business divisions to verify that services fulfill corporate requirements for security, integration with internal systems, and other challenges. Integration with other SaaS services running on the same method and internal IT is becoming more frequent with SaaS services. 

And marketplace sellers are integrating their services and merging services from several suppliers into entire suites on a single underlying technology. These usually include a big anchor service, similar to the anchor store in a mall, and a lengthy tail of more specialized services targeted at a particular market.

VI) Stability of SaaS

It’s distinguished by a high number of relatively modest merchants, with more arriving regularly. In this scenario, some preeminent businesses, such as Microsoft Corp. and IBM, and some small middleware suppliers, such as Progress Software Corp., are assisting business partners, particularly independent software manufacturers, in entering the market.

VII) User Involvement

Users should be heavily involved in the SaaS offering’s functional progress. In other words, the user must actively participate in the community and user conferences because the program’s progress is pushed more strongly by the remarks of the buying community than in any prior generation of software. Indeed, several SaaS providers have built-in suggestion boxes into the user interfaces of their software.

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