What is SaaS ?

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). Strong showing by companies like Salesforce in the nascent SaaS industry helped make SaaS a defining feature of the modern economy.

Why Choose SaaS?

  • If you use applications that aren’t in-demand very often, such as tax software
  • For short-term projects requiring collaboration
  • If you are a startup or small company that needs to launch ecommerce quickly and don’t have time for server issues or software
  • For applications that need both web and mobile access

What are the differences between IaaS, PaaS and SaaS?

While the cloud is a constant burning topic from small businesses all the way to global enterprises, it remains a pretty broad concept that covers a lot of online territory. If you are late considering switching your business to the cloud, whether it be for application or infrastructure deployment, it is imperative that you understand the differences and advantages of the various cloud services.

You will want to start comparing the three models of cloud service: Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). Since each of these has its own benefits and variances, it is necessary to understand the differences among SaaS, PaaS, and IaaS to know how to best choose one for your organization.

What benefits does SaaS provide?

Saves Time

Instead of buying software and then installing it, SaaS users subscribe to the software on a monthly or an annual basis. The relevant applications are used online through files saved in the cloud.


Generally, customers pay for this service on a monthly basis using a pay-as-you-go model. Transitioning costs to a recurring operating expense allows many businesses.


Since SaaS systems are cloud-based, they are easily scalable and can be quickly integrated with other similar systems.

Ease of Use

SaaS apps can be accessed through the Internet and a number of mobile devices. The quality and consistency of user interfaces have also greatly improved in the past few years, and the adoptability.


Since SaaS applications are delivered over the Internet, users can access them from any Internet-enabled device and location.

Automatic updates

Rather than purchasing new software, customers can rely on a SaaS provider to automatically perform updates and patch management.

How does SaaS work?

With SaaS, software is centrally provided as a service through the Internet. Users create individual accounts and accruing costs are billed monthly or annually. The applications do not run on their own computer, but are called up online. The provider is directly responsible for providing, maintaining, and updating the programs. Users only need to access the software through a web browser. This usually works with any Internet-enabled device; all you have to do is log into the tool with your login data.

The most popular SaaS programs include project management apps, content management systems (CMS), financial accounting, file management, e-commerce, customer relationship management (CRM), archive management, and personal planning. While companies have often had to install multiple programs in the past and purchase and manage licenses for them, the much more customer-friendly SaaS model is becoming increasingly popular as a replacement.

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