Definition

SaaS stands for Software as a Service. It is a method in which one can deliver software applications over the internet, usually on a subscription basis.

 

Understanding SAAS – Software As A Service

Imagine using powerful software without complex installations or maintenance. That’s the magic of SaaS (Software as a Service). The provider handles everything –  operating, managing, and maintaining the software and its infrastructure. You simply sign up, pay a fee, and get started.

 

While some trace SaaS roots back to the 1950s, the model we know today took off in 1999 with Salesforce’s cloud-based CRM system. Today, it reigns supreme as the leading software delivery method.

 

Think of all those work tools you use daily. From communication tools like Slack to file sharing with Dropbox, even core business applications like ERP and HR platforms – most are delivered via SaaS.

Why Choose SaaS?

 

Compared to traditional on-premise software, it offers a multitude of benefits for businesses of all sizes:

 

• Faster Results: Get up and running quickly with minimal setup time.
• Reduced Costs: Lower upfront costs and predictable ongoing fees compared to traditional software licenses.
• Minimal Maintenance: The provider handles software and infrastructure management, freeing up your IT resources.

 

It empowers businesses to focus on what they do best, leaving the software headaches to someone else.

 

Why need SAAS?

For Developers:

 

• Recurring Revenue: It offers a steady stream of income through subscription fees.
• Faster Deployment: Get your software to users quicker with less need for complex installations.

For Businesses of All Sizes:

 

It goes beyond disrupting markets; it empowers businesses to:

 

• Work Anywhere, Anytime: Access software 24/7 from any device with an internet browser.
• Simplify Operations: No need for software installations, hardware updates, or licensing headaches.
• Save Money: Pay-as-you-go models eliminate upfront hardware costs and offer flexible payment options.
• Scale with Ease: Easily adapt your software solution as your needs grow or shrink.
• Secure Your Data: It providers invest heavily in data security infrastructure and expertise.
• Gain Insights: Access data reporting and analytics tools to make informed decisions.

Who Benefits Most From SaaS?

 

• Startups & Small Businesses: Get up and running quickly without the burden of building or maintaining software.
• Large Enterprises: Utilize SaaS for short-term projects or specialized applications.
• Mobile-First Businesses: Easily manage applications accessible on both web and mobile devices.

 

How SAAS Works?

 

It makes use of cloud computing infrastructure and economies of scale to give customers a more efficient way to adopt, use, and pay for software. All SaaS applications share the following characteristics:

 

It’s applications are designed to be hosted in the cloud. The SaaS software vendor can host the application on its own cloud infrastructure or through a cloud service provider (such as Amazon Web Services (AWS), Google Cloud, IBM Cloud, or Microsoft Azure). Hosting with a reputable cloud service provider allows the SaaS provider to provide the scalability and global accessibility that some customers require.

 

It’s applications are available to any customer with an internet connection and an internet-connected user device (such as a computer, mobile phone, or tablet). SaaS applications typically run in any web browser; however, on mobile devices, SaaS applications may benefit from (or require) a mobile or tablet app. A few SaaS applications, such as Adobe Acrobat, may offer or require a dedicated thin client, which users must download and install on their computers.

 

It’s applications use a multi-tenant architecture, which means that each customer is served by a single instance of the application. To ensure security and privacy, each customer’s application data, user data, system data, and custom configurations are kept separate from those of other customers.

 

Most importantly, SaaS applications require minimal to no management and maintenance.

The SaaS vendor is responsible for – 

 

• Provision, manage, and maintain all servers, networking equipment, storage hardware, and operating software required to run the application.
• Providing feature fixes and security patches as needed.
• Load balancing, redundant infrastructure, data backup, cloud security, and disaster recovery services are provided to prevent outages and meet the service level agreement’s performance, availability, and data protection standards.

 

Many vendors also offer an application programming interface (API) that customers can use to integrate their SaaS application with other SaaS or traditional software applications.

 

What are the challenges in using SAAS?

While SaaS provides a huge number of advantages, there are also some challenges you have to consider when adopting this model. Those are:

 

• Vendor Lock-In: If you have to switch between two SaaS providers, it can become very complex as your data is heavily integrated with that application. You have to carefully plan, as data portability considerations are very important.
• Internet Reliance: You have to have consistent internet connectivity, as it is very crucial for accessing SaaS applications. Disconnection with the internet can disrupt your workflow, it highlights the importance of reliable internet service providers.
• Limited Customization: While some applications offer you customization options, they might not be as considerable as traditional software that you have to install on your own hardware. You have to understand the level of customization offered is essential before choosing a provider.
• Data Security: Since your data resides on the provider’s servers, choosing a reputable SaaS provider with robust security measures is paramount to ensure your data’s safety and privacy.

 

Canva: Design Democratized with a Cloud-Based Platform

The Challenge:

 

Creating professional-looking graphic design materials was once an expensive and time-consuming process that necessitated specialized software and design knowledge. Canva aimed to make design accessible to all.

The Solution:

 

Canva entered the market with a user-friendly, cloud-based design tool. Here’s how SaaS helped them:

 

• Freemium Model: The free tier provided basic design tools and templates, attracting a large user base. Paid plans provided access to premium features and functionalities.
• Drag-and-Drop Interface: The user-friendly interface made design accessible to those with no prior experience.
• Collaboration Tools: Real-time collaboration features enable teams to work seamlessly on projects.

SaaS Advantages:

 

Accessibility: SaaS delivery eliminates the need for costly software downloads, making design tools available on any device with an internet connection.

Global Reach: Canva’s cloud-based platform enabled them to reach a global audience without regard for geography.

Scalability: The SaaS model allowed for easy scaling as the user base grew exponentially.

The Outcome:

 

Canva’s innovative approach, powered by SaaS, revolutionized the design industry:

 

Massive User Base: Canva has millions of users worldwide, including individuals and large businesses.

Unicorn Status: The company’s valuation has surpassed $30 billion, cementing its status as a design powerhouse.

Key Takeaways:

 

Canva’s story exemplifies the benefits of SaaS for startups:

 

• Reaching New Markets: SaaS removes geographical barriers, allowing startups to serve a global audience from day one.
• Empowering Users: SaaS platforms can democratize access to specialized tools and services, resulting in a more inclusive business environment.
• Data-Driven Decisions: SaaS solutions generate valuable user data, allowing for data-driven decisions in product development and marketing strategies.

 

Canva’s success demonstrates that SaaS can be an effective tool for startups to disrupt existing industries while also empowering users and creating entirely new design paradigms.

 

FAQs

What is a saas application?

 

A SaaS application, also known as a “Software as a Service” application, is a type of software program that you access over the internet through a subscription instead of installing it on your own computer.

 

Here’s a breakdown of the concept:

 

• Software: It’s still a program that allows you to perform specific tasks, just like traditional software you might install on your computer.
• As a Service: Instead of buying a license and installing it yourself, you access it as an ongoing service through a subscription. Think of it like paying for electricity or water – you use it as needed, and the provider takes care of the infrastructure behind the scenes.
• Cloud-based: The software runs on servers maintained by the provider, typically in large data centers. You access it through a web browser or a dedicated mobile app.

 

What is saas in cloud computing?

 

In cloud computing, SaaS (Software as a Service) is a way to deliver software to users over the internet,  eliminating the need for local installations and ongoing maintenance.  

• Cloud-Based Delivery: The software resides on remote servers managed by the SaaS provider. You access it through a web browser or mobile app.
• Subscription Model: You typically pay a subscription fee to access the software, often on a monthly or yearly basis.
• Reduced IT Burden: The provider handles software updates, security, and maintenance, freeing up your IT resources.

 

What is IaaS, PaaS and SaaS?

 

These terms all refer to different ways you can access and use computing resources over the internet, also known as cloud computing.

 

IaaS (Infrastructure as a Service):  It refers to renting the basic building blocks of a computer – servers, storage, networking equipment.  With IaaS, you have complete control over these resources and install any software you need.  It’s like renting a bare apartment and furnishing it yourself.

 

PaaS (Platform as a Service):  It provides the underlying infrastructure (like IaaS) but also includes a platform for developing and deploying your own applications.  You don’t manage the servers or network, but you have more control over the software layer.

 

SaaS (Software as a Service):  This is the most user-friendly option. SaaS provides access to complete software applications over the internet, with no need for installation or maintenance on your end. You simply log in and use the software.