SaaS - What is in it for Customers and Vendors?

Software Architecture on demand

If you are familiar with the concept of Cloud Computing then you must have heard about SaaS (Software as a Service). Based on the services rendered, Cloud Computing can be categorized into multiple categories, for example:

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  Infrastructure as a Service (IaaS)

  
  


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  Platform as a Service (PaaS)

  
  


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  Software as a Service (SaaS)

  
  


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  Desktop as a Service (DaaS)

  
  

An appropriate term to define SaaS can be “on-demand software”. Like in online shopping, a purchased item gets delivered at your doorstep, SaaS is also a delivery model where a vendor hosts the software centrally and buyers consume the services using cloud infrastructure. 

Still, wondering what SaaS is? Let me help you through that.

SaaS is a cloud-based service in which accessing an application is possible via the internet instead of downloading software on your desktop PC. It is a software licensing and delivery model and is centrally hosted. SaaS solutions are based on a multitenant architecture.

Some examples: BigCommerce, Google Apps, Salesforce, Dropbox, MailChimp, ZenDesk, DocuSign, Slack, Hubspot.

Top Business Applications of SaaS

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  Office software

  
  


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  Payroll processing software

  
  


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  DBMS software

  
  


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  Virtualization

  
  


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  Accounting

  
  


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  Customer Relationship Management (CRM)

  
  


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  Human Resource Management (HRM)

  
  

Whether you are a vendor providing software as a service to your customers or an organization using applications to run your business, SaaS has something to offer to everyone!!

What’s in it for customers of SaaS?

Organizational Scalability

In the initial phases of a business, organizations generally don’t have an idea of peak capacity. SaaS allows them to scale their software infrastructure as they grow.

Flexibility in Licensing and Subscriptions

Gone are the days when the software was sold as a perpetual license with an up-front cost. SaaS provides lower up-front costs to its customers and more predictable recurring costs thereafter. 

Less Infrastructure

Using cloud computing services, it is possible to cut down hardware requirements and costs. On-premises infrastructure is no longer needed for the customers of SaaS.

Software Upgradation

SaaS enables its customers to get immediate access to innovations and the latest features. They don’t need to worry about software updates as the latest secure code in the cloud is provided to them in the SaaS model.

Immediate Access to Functionality

Customers don’t have to wait for the shipment and installation of hardware or software. As soon as they acquire the subscription of software, they get access to the services.

Extended Reach

One of the major benefits for the customers of SaaS is that they can easily extend the usage of the services beyond the traditional on-premises network.

What’s in it for vendors?

Frequent Involvement with Customers

SaaS vendors can get proper reviews and feedback from their customers due to the transparency provided by this model which leads to better communication and a healthy relationship between buyers and sellers. A traditional model can never provide this level of transparency.

Rendering Cutting Edge Technology

The traditional model offers a 6-months release cycle while in the SaaS model, vendors provide regular updates to their customers to keep up with the speed of innovation. New features and functionalities come into existence based on feedback loops.

Up-to-the-minute Resources

Vendors no longer need to worry about a legacy of old software. The SaaS model works on the principle of ‘latest is the greatest’. The allocation of resources by the vendors is done to provide new codes to all the customers.

Summing Up…

As already evident, cloud computing helps in cost reduction and provides flexibility to a business. SaaS is also an integral part of cloud computing. Because of several advantages provided by this model, many businesses are shifting towards cloud services. Though some limitations slow down the acceptance of SaaS, the software market and technology landscape need this tool for better business growth.