Software as a Service (SaaS)

April 12, 2023 • 9 minutes read

SaaS stands for "Software as a Service". It is a software distribution model in which software is provided by a provider and becomes available to customers over the internet. SaaS is a type of cloud computing software and usually referred to "on-demand software" or "cloud software"

SaaS allows end customers to get rid of installing and maintaining software by themself. Instead, they access the software through a web browser or app, and a SaaS provider handles all maintenance, upgrades, and security

Examples of SaaS providers

• Salesforce is a popular CRM (customer relationship management) software which focuses on sales, customer service, marketing automation, e-commerce, analytics
• Jira Software is a popular management tool used by development teams
• Slack is a messaging and collaboration platform for teams
• Gmail is a popular web-based email service
• Google Docs is a web-based document editor and document collaboration platform
• Netflix is a subscription based service that provides on-demand videos

Advantages

Cost effective

SaaS providers are responsible for maintaining the software, which can reduce costs for customers. There is no need to maintain your own software and hardware infrastructure

Scalability

Usually SaaS is cloud-based solutions, which means that they can easily scale up or down to meet changing business needs. They can easily add or remove users, upgrade or downgrade their service plan. That is especially useful for businesses that experience seasonal growth

Security

SaaS providers usually care about security aspects. They may have modern security measures, security experts in touch, including data encryption, backups, disaster recovery plans. All these measures can help protect against data breaches and other security threats

Automatic updates

SaaS providers are responsible for updating and maintaining the software, which means that customers always have the latest version of the software without any effort

Accessibility

SaaS applications can be accessed from any location with an internet connection, which makes them ideal for remote work and collaboration

Collaboration

Depending on the type of SaaS, in most cases, SaaS provides real-time collaboration / communication, allowing teams to work together on projects regardless of their physical location. For example, SaaS services like Google Docs, Slack, Dropbox, Zoom

Disadvantages

Dependency on Internet

SaaS applications require internet connection to function properly. They may not be accessible during network outages. Some SasS applications may work offline, but with limited functionality

Subscription Costs

Usually SaaS applications can be more cost-effective than traditional software. Take into account that subscription costs can be changed over time. Subscription plans may be more expensive with more intensive usage. It's important to carefully analyze the total cost of the subscription. At some point self hosted solutions may be less expensive

Security Concerns

SaaS applications are hosted and maintained by SaaS providers, usually in the cloud. Businesses/customers have to trust the SaaS provider that their data is secure. Security reputation of a SaaS provider is very important for end customers

Limited Customization

SaaS applications are typically designed for most demanded features and functionality, but there may be limitations on customizing the software for specific needs. This can be a problem for some businesses with highly specialized needs, like integrating with legacy systems or proprietary software

Potential Vendor Lock-In

SaaS applications are often highly integrated with other software and services. Switching to a new provider can be difficult and time-consuming. This can be a vendor lock-in, where businesses have to continue using SaaS solution even if they are not satisfied with the service

Conclusions

SaaS software distribution model is a good and modern option which may save a lot of time and money. There are a lot of Advantages in such a model even with all its Disadvantages. Nowadays it’s difficult to find a place without the internet. Network outages happen, but usually they do not take a long time.

Be careful by analyzing subscription plans, always think about growth. Will it work for you?

Think about potential change of SaaS provider at the beginning. Will you be able to export all your data from SaaS in case of moving?