What is Software as a Service (SaaS)? and different organizations using SaaS

Saas, software as a service isometric landing page. Technology for using digital computer programs via internet access and subscription system. Laptop connected with cloud storage 3d vector web banner

Software as a Service, additionally grasp as SaaS, could be a cloud-based service wherever rather than downloading software packages on your desktop computer to run a business network and update, you instead access AN application via an online browser. It has become the most used application of the cloud. It is simply can be interpreted as on-demand software where any application can be accessed via an internet connection and such access is provided on a subscription basis. This could be any software from office 365 to Gmail services. Furthermore, there are many enterprises that are using SaaS-based business apps for working.

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Simple Explanation:

In simple words, you are just provided with the front end of the application. You are just an end-user. You don’t have to worry about the infrastructure, databases, working model, memory allocations, and other structures. You also don’t have to worry about updates. All the things are managed by service providers or vendors. This is particularly important for the programmer as it provides them an excellent environment for working as they don’t have to spend time downloading, installing, and updating software. They just have to code and left the rest on the vendor to manage.

The Statista states some facts:

“The global public cloud software as a service (SaaS) market is forecast to reach 157 billion U.S. dollars in size in 2020, more than doubling the market size in 2014. Together with a platform as a service (PaaS) and infrastructure as a service (IaaS), SaaS if one of the three main categories of cloud computing.”

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This offers a range of benefits and drawbacks. Key blessings of SaaS include accessibility, operational management, and compatibility. In addition, SaaS models provide lower prices than traditional software downloading and installation, additionally make them available to a wide variety of companies, creating it easier for smaller corporations to disrupt existing markets whereas empowering suppliers.

Companies Using SaaS:

A wide range of small and big companies are using SaaS. Here is a list of few companies using SaaS

Advantages of SaaS:

SaaS provides a variety of benefits to its users. Its biggest advantage is that we don’t have to build servers and infrastructure for enterprise, we just have to get a subscription from the vendor and use it. We can subscribe and use it for a period of time just like rental services. Here are few benefits of SaaS

  • Scalability: This model is easily scalable and expendable on business demands. Usually, SaaS services reside in cloud environments that is ascendable and have integration with different SaaS offerings. As compared to the normal models, users don’t need to purchase another server, hardware, or software system. They solely have to change a SaaS offer and, SaaS vendors will update it for you just with a little money.

  • Cost Friendly: SaaS services greatly reduce the capital cost of installing servers, hardware, and software developers. If you want to upgrade your system, you don’t have to spend anything on servers and hardware, you just have to change offer and boom, you are upgraded to a new package. Maintenance costs reduced as well as you don’t have any hardware and the vendor maintains all the necessary hardware.

  • Automatic Update: By using SaaS, you don’t have to worry about updates and installation. All the software will be available online at just one click after subscription and the vendor will automatically update the software.

  • Independent of OS: Many software depends on the operating system and are limited to the operating system. Furthermore, there is a different procedure for using this software on different OS. But, SaaS free you from this difficulty. You can use SaaS on any OS such as Windows, macOS, or Linux. All you need is just a subscription and network connectivity.
  • Data Analysis Features: SaaS provides you with various features of data analysis. It provides amazing analytics features for valuable insight into your business.

  • Data Backup: On-premise systems have local storage and no backup. If you somehow delete the file, you will be unable to recover it in the future. But, in SaaS, your data is stored in the cloud and data backup is available in case of any emergency.

The Statista States that:

“The statistic shows the size of the public cloud application services (SaaS) market worldwide from 2015 to 2022. In 2020, the software as a service market was estimated to be worth 104.7 billion U.S. dollars.”

Disadvantages Of SaaS:

As we discussed the advantages of SaaS, there are several disadvantages of SaaS, which we should also notice. Here are some drawbacks

  • Data Security: This is one of all the highest issues for corporations that are trying to pick a SaaS-based application model for their enterprise. Problems like identity and access management got to be self-addressed before trusting any third party service give along with your company’s sensitive information. Notably within the case of accessibility from a mobile device, strict measures got to be taken before any reasonably sensitive information is divulged to the service supplier.
  • Performance Deficiency: A browser-based application working on a remote datacenter could lack in performance compared to an analogous application running from your employee’s desktop. Corporations thought to invest in an exceedingly quick and reliable net affiliation to negate this issue and conjointly use tools for application performance management to understand how their SaaS apps are working overtime.
  • Compatibility issues: There may be several compatibility issues when you host various apps from external SaaS. Sometimes, API doesn’t integrate properly thus, causing problems.
  • Limited Access: However, third party handling your software is big primacy but, sometimes it becomes a problem. Sometimes, you want to customize or upgrade software according to your demand. But you have no access to the server and backend, thus, it will be very bad for you in this case.

When to use SaaS:

We have seen in detail what actually SaaS is and its pros and cons and we can easily decide SaaS is suitable for which kind of services. Here is a list of some enterprise where SaaS can be suitable

  • Small or medium-sized companies who want to e-commerce and don’t have the budget for server building can use SaaS services
  • Startups that require easy and affordable collaboration for business should use SaaS
  • Applications in which data security is not a big use such as agriculture management or water management system apps
  • Enterprises in which both the mobile app and web app are required for working should use SaaS

“This statistic displays the enterprise SaaS market size worldwide from 2009 to 2019 (projected). In 2019, SaaS annual revenues exceeded 100 billion U.S dollars.” ~Statista

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