SaaS stands for Software as a Service. It refers to
a software delivery and licensing model where the software licensing is based
on subscription and hosted online. Some people call it ‘non-demand software’ though
it was initially called ‘software plus services’. Basically, SaaS application provides
an alternative and a new way to access software as opposed to the traditional
access methods.
In the past, software would be bought outright and
eventually loaded onto devices. SaaS on the other hand entails hosting the
software in the cloud and allowing subscribers to access it over the internet. This
model benefits both individual users and businesses in numerous ways.
Benefits
of SaaS application
Over
the recent past, SaaS model has been embraced by many businesses and individual
users due to the following benefits:
·
Low initial costs
Subscription-based applications do not require license
fees. That means they have low initial costs. A SaaS provider is also
responsible for the management of the IT infrastructure that the software
requires. This lowers the IT costs for the software, hardware, and the people
required to manage it.
·
High adoption
Majority of the SaaS apps are compatible with different
devices or computers. That means they can be accessed from anywhere, any time. Since
many people are familiar with the use of the internet, finding the SaaS application
that they need is relatively easier. This combined with the fact that the apps
need little or no learning to use has increased their adoption rate.
·
Seamless integration
SaaS vendors that have multi-tenant architectures
have the capacity to scale up indefinitely to meet the demands of their
customers. Majority of these vendors provide customization capabilities with an
aim of meeting the specific needs of customers. Additionally, many offer APIs
that allow for the integration of their apps with the existing ERP systems and
other productivity systems.
·
Painless upgrades
Since all upgrades and updates are managed by the
SaaS provider, users don’t have to download and install patches. Availability
management is also the responsibility of the SaaS provider. Thus, customers don’t
have to add software, bandwidth, and hardware due to continued growth of the
user base.
SaaS
examples and applications
Some SaaS applications are already well-known
globally.
They
include:
These
and other SaaS apps are used by enterprises and individuals to execute the following
operations:
·
Invoicing and accounting
·
Planning
·
Tracking sales
·
Communications that include messaging
and webmail
·
Performance monitoring
Today, SaaS apps are a popular choice among many
enterprises and business people.
Why
SaaS applications are popular
SaaS popularity is increasing at a very fast rate
because the model simplifies deployment while reducing the costs of acquisition.
Developers support customers using a single version of an app. This is known as
multi-tenancy and it allows firms to scale up faster without adding their IT
staff or replacing the costly infrastructure. Using SaaS software, companies
are offloading the management of non-mission-critical apps like CRM and HR. Additionally,
SaaS application pricing model keeps IT budgets consistent with or lower than
homegrown or packaged software.
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