What is Software as a Service (SaaS) Model?

Software as a Service (SaaS) is defined as a software delivery model where the application is hosted by the third-party provider and makes the application accessible to the clients over the Internet. One of the fundamental types of cloud computing model is SaaS together with platform as a service (PaaS) and infrastructure as a service (IaaS). A range of IT professionals, business users and C-level executives use SaaS applications.

Software as a Service (SaaS) means a method which we use to distribute applications over the internet- like service. Despite installing and maintaining software, we can access the software through the Internet, without worrying ourselves from complicated management of software and hardware.

Sometimes the applications of SaaS are also called on-demand software, Web-based software, and hosted software. The applications of SaaS run on the servers of a SaaS provider. The task performed by the provider is to handle access to the application, as well as security, performance, and availability.

Software as a Service model is a software licensing and delivery model. In this model, the software is licensed on the basis of the subscription and is centrally hosted.

For fundamental business technologies, there are various applications of SaaS such as human resource management (HRM), customer relationship management (CRM), financial management, sales management, billing and collaboration leading SaaS to providers comprising Microsoft, Oracle, Salesforce and SAP.

Software as a Service SaaS Model

Features of Software as a Service (SaaS) Model

The ideal approach to comprehend the SaaS model is about a bank, which ensures the protection of every customer while providing a service which is reliable and secure-for a huge scope. The customer of the bank uses the same financial system and technology without worrying about anyone without any personal information from the authority.

A bank meets the key features of the SaaS model.

There are various features of software as a service (SaaS):

  1. Better access
  2. Multitenant architecture
  3. SaaS trends
  4. SaaS harnesses the consumer web
  5. Easy customization
Software as a Service SaaS Model
  1. Better Access: – Improved data access from any networked device while facilitating the management of privileges, monitoring the use of data, and ensuring that everyone at the same time sees similar information.
  2. Multitenant Architecture: – Multitenant architecture is an architecture where all the applications and users share a single, same infrastructure and code base, which is maintained centrally. Since SaaS merchant clients are all on a similar code base and framework, sellers can advance more rapidly and spare valuable development time recently spent on keeping up numerous adaptations of the more established code.
  3. SaaS Trends: – Now, organizations are building SaaS integration platforms to develop additional applications of SaaS.
  4. SaaS Harnesses the Consumer Web: – Anyone familiar with My Yahoo! Or Amazon.com will be familiar with the web interfaces of specific SaaS applications. With the help of the SaaS model, we can easily customize point-and-click, the weeks or months that it takes to update traditional business software feels frustrating outdated.
  5. Easy Customization: – Capacity to effectively alter the application to accommodate their business measures without influencing a common framework for every client. In view of the way the structures of the SaaS, these customizations are remarkable to each organization or client and are constantly secured through upgrades. This implies that SaaS providers can update more frequently with much lower adoption costs and less client risk.

Advantages of the Software as a Service (SaaS) Model

There are various advantages of the software as a Service (SaaS) model:

Software as a Service SaaS Model
  1. Reduced Time to Benefit: (SaaS)model is unlike the traditional model in light of the fact that the software is installed and configured already. We can provision the server in the cloud, for instance, and then we will have the application, which is ready for use in a few hours. It will help you minimize the time spent on installation and setup and reduce the problems that interface with software deployment.
  2. Scalability and Integration: – The Software as a Service (SaaS) typically reside in scalable cloud environments that are integrated with other SaaS contributions. Like the outdated model, we do not require to buy additional server or software. We only require to allow another SaaS offering, and with regards to server capacity planning, the SaaS provider will be itself. In addition, we will have the flexibility so that we can use our SaaS up and down on the basis of the particular requirements.
  3. Easy to Use and Perform Proof-of-Concept: – The SaaS offerings are simple to use because they come with baked-in great samples and practices. Users can proof-of-concept and test the functionality of the software or a previously released feature. Also, we can have more than one example with different versions and perform a seamless migration. For a large environment, we can use SaaS offerings in order to test the software before purchasing.
  4. Lower Cost: – SaaS can provide advantageous cost savings because typically, it exists in a shared or multi-tenant environment, where software and hardware licenses cost less than the traditional models.

SaaS’ another advantage is that we can scale our customer base quickly because SaaS enables small and medium businesses to use software; otherwise, customers would not utilize it due to the high license cost.

The cost of maintenance can also reduce as the environment is owned by the SaaS provider, and it is divided among all the customers using that solution.

  • New Releases: – With the help of the SaaS, the provider can upgrade the solution and become accessible to their clients.The effort and cost associated with advancements and new releases are lower than the conventional model, which typically forces you to purchase and install an upgrade package (or pay for specialized services to upgrade the environment).

Disadvantages of Software as a Service (SaaS) model

There are various disadvantages of the software as a Service (SaaS) model:

  1. Troublesome software integration
  2. Difficult with regulation compliance
  3. Low performance
  4. Cumbersome data mobility
  5. Insufficient data security
Software as a Service SaaS Model
  1. Troublesome Software Integration: – There could be an integration issue with the existing in-house software when working with an external service provider of SaaS to host many applications. The data structure and In-house APIs cannot integrate correctly with external software. As a consequence, for best results, we must always conduct compatibility checks with all the applications of SaaS.
  2. Difficult with Regulation Compliance: – If critical business data is stored in the data center of the service provider, then it is tough to comply with the data protection regulations of the government. Our company has to know what rules apply to our business, ask your service provider the right questions and correct any discrepancies in the process.
  3. Low Performance: In comparison to a similar application running on the desktop of our employee, a browser-based application running at a remote data center can cause performance degradation. Therefore, in order to negate this factor, businesses must invest in the internet connection, which has to be reliable and fast and also use tools for the management of the performance of the application to understand how their applications of the SaaS are performing over time.
  4. Cumbersome Data Mobility: – The market of the Software as a service is full of startups, and most of them do not have sufficient experience in order to endure in a highly competitive environment. In a failure case or a condition where we need to change our service provider, then it becomes an awkward job to move valuable data of our company from one service provider to another service provider.
  5. Insufficient Data Security: Insufficient data security is the main concern for those companies who are searching for substitutes for the SaaS-based application model. Problems like find and access management need attention before offering any third-party service with sensitive data of our company. Strict measures need to be taken before the service provider can segment any type of sensitive data, especially in the situation of access from a mobile device.

Popular Example of Software as a Service (SaaS) Model

There are various examples of software as a service:

  1. Salesforce
  2. Office 365
  3. Dropbox
  4. Google G suite
  5. Zoom
  6. SAP Concur
Software as a Service SaaS Model
  1. Salesforce: – Salesforce is an example of SaaS model and it is a Customer Relationship Management (CRM) solution which unites companies and clients together. It integrates CRM platforms which provide a single shared view of each client to all the departments.
  2. Office 365: – Office 365 is a unified experience of monthly updated applications and services with Power point, Excel, and Words and more, and the latest updates of features and securities.
  3. Dropbox: – Dropbox provides a client which work on Linux, Mac, and Windows operating system and mobile device, enable users to drag and drop files from their desktop into their browser to upload them to Dropbox.
  4. Google G Suite: – The Google G Suite is the answer of Google to the productivity issues most organization and companies face. In a suite of tools, it offers a solution for cloud storage, calendars, word processing, presentation decks, email, etc.
  5. Zoom: – Zoom integrates cloud video conferencing, group messaging, simple online meetings into a single platform which is easy-to-use.
  6. SAP Concur: – SAP Concur integrates corporate travel booking along with expense tracking and providing clients a great user experience, richer reporting, and more appropriate data. Intuitive and mobile and web-based tools support users rapidly and correctly complete expense reports.

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