Since the beginning of the Internet, business models based on this technology have been created and as the digital transformation has evolved, the increase has been exponential and one of those models is software as a service (Saas), in this post I will explain what it is, its features and advantages.
Cloud-based vs Native Application Development in the Cloud
SaaS What is it?
It is a software that you pay to use but it is not yours, it is like paying rent and in exchange the SaaS service provider is responsible for hosting all this information on external servers so that it is always available in the cloud and is responsible for technical support and maintenance of the software.
SaaS stands for “Software as a Service” in English. It is a model of data storage and distribution associated with cloud computing in which both the stored data and the software used by a company are not hosted on the company’s servers.
Being software as a service, SaaS has these characteristics:
- SaaS providers provide users with the software platform and applications to access the data through a subscription model, either monthly or annually.
- The management of the software is left to the SaaS provider.
- The data is secured in the cloud, so that if there is damage to the equipment it is backed up in the virtual world.
SaaS is now part of the range of cloud computing solutions to reduce business problems. In addition to Software as a Service, we also have:
Infrastructure as a Service (IaaS)
This is a cloud services offering in which the provider gives users access to tools such as servers, networks and data storage, as well as backups and virtual machines. This saves companies the cost of acquiring and supporting their own hardware for these operations.
Platform as a Service (PaaS)
Creates for users a cloud environment in which they can develop applications. In addition to the features already mentioned in IaaS such as storage and data processing capacity, it offers pre-built tools for users to customize and create their own applications. Read more about PaaS.
When do you use SaaS?
Do you use email a lot, or do you work from your web browser with certain applications? If so, you use any type of SaaS on a day-to-day basis without realizing it.
You don’t need to download an additional application to use it, just use your browser to access all your information and tools.
SaaS for small businesses
For small businesses, SaaS cloud services have changed the way they work, giving them access to technology that was once unimaginable because of the cost of maintaining their own server.
In addition, now that mobile devices have become the way we communicate over the last decade, where can a small business host its application to coordinate and manage services? On an external server, in a SaaS service.
SaaS for large enterprises
Software as a service for large companies has facilitated the spread of companies that are able to position themselves abruptly and change the way things are done in the market niche or need they satisfy.
Today Netflix, an audiovisual material storage platform has taken off. But why is it so popular, because the service is fast thanks to the software and infrastructure as a service they use to keep that data flow stable and fast even with below average internet connections. Thus, it has become one of the most stable when streaming.
Software as a Service for Business
Advantages of SaaS
Software as a service was born out of the need to create solutions for companies that lacked the infrastructure or resources to expand the reach of their servers or have any at all. That is why SaaS solutions are nowadays as wide as their advantages:
- Cost reduction: With a SaaS service you do not have to acquire an internal server, which is expensive, not only because of the number of processors, machines and maintenance. But also because these towers consume a considerable amount of electricity and generate a lot of heat, so as a rule they go in a large space designed for the same and must have special air conditioning, which is also expensive to install.
- Constant updates: The SaaS service provider is responsible for maintaining the software in its most advanced version and without additional fees.
- Global reach: You can travel anywhere in the world and access to your software, applications and data remains intact. In addition, they are often cross-platform, which means you can use your computer, laptop, tablet or mobile to use it. You can even have an App to access it from your cell phone without using a browser.
- Time saving: You can use the software from the moment you hire it.
- Scalability: This is a service where you only pay for what you consume. If you use a small amount, then the rate will be reduced, and it scales as your data transfer needs increase.
- Security and constant updating: Software patches, security of your data and software improvements are the responsibility of the service provider. This is a relief to be able to invest that time in other aspects of the business.
Characteristics of software as a service (SaaS) versus on-premise package software
What are the differences between software-as-a-service and on-premise software?
On-premises software as a service
- Hardware in the office.
- Services on external servers.
- Software needs to be installed on every computer in the company, tested and updated one computer at a time.
- You do not need to install software and the update is automatic from the cloud server.
- You have to buy operating systems and application licenses such as Office.
- Fixed subscription model that brings built-in tools that compensate the investment.
- Software incompatibility with multiple computers.
- Integrated software compatible with multiple devices.
- Single server: no additional backups.
- Cloud backups: if one server fails, it remains operational on other servers.
- Costly: infrastructure, internal servers, special cooling, space conditioning, when expanding the process is repeated.
- Payment is based on usage; if the company grows, the fee increases exponentially.
- Out of reach for start-ups and small companies.
- Within everyone’s reach.
Digitalization at the heart of Human Resources
The future of SaaS
One thing is for sure, on-premises servers are being displaced by SaaS services, more and more companies are using it, especially small and start-up companies. What is projected soon for this service model?
- AI: Artificial intelligence is advancing and evolving by leaps and bounds. It adapts to any type of code and learns from user behavior to design improvements in applications or software.
- Autonomous management: Autonomous operating systems are projected, capable of evolving on their own and increasingly less dependent on human intervention. In terms of computation and data processing speed, AI is becoming more powerful everyday thanks to hardware improvements.
Are you ready to use SaaS?
Now that you know what SaaS (software as a service) is and the benefits it offers, do you want to get on the cloud?
Remember, if you have a growing business or are just starting one, it is an economical, secure and reliable solution. Without installing operating systems or applications on your computers, without spending time learning to use new software because the tools offered by a SaaS provider are very similar to those you have already used in other models.
Speed, reliability, security and adaptability. If you are looking for that for your business project this is the best option for you.
Tell us if you already use SaaS and what you think about this technology. Contact Enkronos team today.