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.
These and other SaaS apps are used by enterprises and individuals to execute the following operations:
· Invoicing and accounting
· 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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