Software as a service (SaaS)

What is software as a service?

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

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Benefits of SaaS

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1] No hardware costs

Processing power is supplied by the cloud provider

2] No initial setup costs

Applications are ready to use once the user subscribes

3] Pay for what you use

Particularly beneficial when something is only required for a short period

4] Usage is scalable

Additional storage or services can be accessed on demand without needing to install new software and hardware

5] Updates are automatic

Updates are often free of change and deployed automatically by the software provider

6] Cross device compatibility

Applications can be accessed via any Internet enabled device, such as desktops, smart phones and tablets

7] Accessible from any location

Users aren’t restricted to one location and can access applications from any internet enabled device

8] Applications can be customized and white labelled

Applications can often be altered to suit the needs and branding of particular customers

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Whereas in the past software would generally be purchased outright and loaded onto a device, SaaS normally refers to a subscription based model where the software is hosted in the cloud and accessed via the internet. There are a number of benefits of this to consumers, whether that is individuals using software for private purposes, or businesses.

There are many well-known examples of SaaS, including Office 365, Google Apps, Salesforce, Citrix GoToMeeting, Cisco WebEx and Netflix.

Examples of where SaaS can be used by enterprises:

• Accounting and invoicing

• Tracking sales

• Planning

• Performance monitoring

• Communications (including web-mail and messaging)