What Is Software As A Service: SaaS In Cloud Computing

Software as a Service or SaaS is a hugely successful part of cloud computing. It is used by most businesses and startups, and individual users. Software as a service is delivering centrally hosted applications over the Internet as a service. SaaS applications are seldom called on-demand Software, web-based Software, or hosted Software.

If you are a programmer, you used Slack or are currently using Slack, a Software as a service company, because you need to pay Slack to use its features. They provide end-to-end business features like live chatting, grouping, video chat, etc.

SaaS is one of the three major things of cloud services, infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS).

What Is Software As A Service(SaaS)

Software as a service (SaaS) is the software distribution model in which the third-party provider hosts apps and makes them accessible to consumers over the Internet. The SaaS is one of three main categories of cloud computing, with infrastructure as a service (IaaS) and platform as a service (PaaS).

The SaaS model of software delivery has been defined as an official for many types of business applications, and it has been incorporated into the wide industries. It promises delivery strategies to many enterprise software vendors.

SaaS businesses have offerings available for various business applications, including email and collaboration, customer relationship management (CRM), payroll processing, sales management, human resources, financial management, enterprise resourcing planning (ERP), content management, and database and document editing and management.

SaaS applications are used by a range of IT professionals, business users, and C-level executives.

SaaS pricing

SaaS Providers usually price the SaaS products based on some routine parameters.

For example, they might charge based on the number of people using the app, the number of transactions, or some other usage measure mainly for your needs.

Users typically access the applications using the web browser; in some organizations, they may also use the thin-client terminal.

Most SaaS offerings are based on the multitenant architecture, in which the single version of the application is used for all service provider’s customers.

Organizations using the SaaS applications can change the configuration settings and customize the software within specific parameters, to meet their particular needs. But they can’t customize the code or features to the same degree that is sometimes possible for enterprise software they install locally on the users’ PCs or provide from their datacenters.

Advantages of SaaS

The critical benefits of SaaS include accessibility, compatibility, and operational management.

Another advantage of any SaaS business model is running through the internet browser or android or ios apps that communicate with a server. So it doesn’t matter which OS is used to access it; regardless of whether a user is trying to run an application on Mac, Windows, or Linux machines (or even smartphones running Android or iOS), the application remains accessible.

Additionally, the SaaS models offer lower upfront costs than the traditional software download and installation, making them more available to the broader range of businesses, making it easier for smaller companies to disrupt existing markets while empowering suppliers.

Rather than purchasing new software, customers can rely on the SaaS provider, which automatically performs updates and patch management. This further reduces the burden on the in-house IT staff.

Cloud services like SaaS offer high vertical scalability that gives customers an option to access more or fewer services or features on-demand.

For vendors, this means that they can supply the software service to a majority of the market instead of just the limited and targeted market segment. This means that pricing can be cheaper and more accessible to businesses. For end-users, that means accessing services not ordinarily available, thus both expanding and improving the business services, productivity, and general opportunities.

Hardware commands into one of the other most significant selling points about SaaS, and that’s the lack of initial investment required to use it. For on-premises software, sometimes it’s not entirely that business PCs or other desktops have compatible software and hardware configurations. Additional server and network switches could be needed as part of the general investment in IT infrastructure services necessary to support the software across the business.

On-premise data storage means the need to invest in reliable backups such as through online cloud storage or other disaster recovery plans to mitigate any serious hardware crash that might otherwise cause a significant loss of data.

However, with SaaS, data is routinely saved in the cloud anyway. What makes this double advantageous is not just the redundancy aspect, but also that workers can switch between different devices(Desktop, laptop, mobile) without losing the work or data, simply by logging into a single account, regardless of which device is being used.

Disadvantages of SaaS

A significant problem of SaaS Businesses must rely on the outside vendors to provide the software, keep that software up to date and up and running, track and report the accurate billing and facilitate the secure environment for the business data.

SaaS applications are that they ordinarily require an internet connection to function. However, the increasingly available broadband deals and high-speed phone networks such as 5G make this less an issue. Additionally, some SaaS applications have an offline mode that allows basic functionality.

Freemium Business Model

Freemium = Free + Premium, which means if users do not want to pay for the services, we can still earn money from the app by putting advertisements.

Hulu and Peacock is an excellent example of the Freemium Software-as-a-service model.


Cloud services, or software as a Service (SaaS), represent the most extensive cloud market and are increasing. SaaS uses a web interface to deliver applications managed by the third-party vendor and whose interface is accessed on the clients’ side.

Most SaaS applications can be run undeviatingly from the web browser without any downloads or installations, although some demand plugins. In addition, because of the web delivery model, the SaaS eradicates the need to install and run the apps on individual computers. 

With SaaS, it’s easy for businesses to streamline their maintenance and support because businesspeople can manage everything: applications, runtime, middleware, data, virtualization, OS, storage, servers, and networking.

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