What is SaaS Software & Why are They Essential?

| March 3, 2017

updated on February 12, 2020 at 1:07 pm

SaaS Software


Textbook definition of SaaS is that ‘Software as a Service (or SaaS) is a way of delivering applications over the Internet—as a service’. To put it in simple words, software based over the web. Instead of manual installation of software, one can use it via the internet. It reduces the time consumed in actual installation and then management.

Also known as web-based software applications, run on a SaaS provider’s server where the provider manages access to applications including security and performance. Besides reducing the effort and time consumption, SaaS offer other benefits as well.

Benefits of Using SaaS Services

  • Cost Benefits

One differentiator between SaaS and traditional model is of the cost. Price usually exists in a shared manner where the hardware and software license costs are low compared. Besides this, it also reduces the cost of investment for SMBs. All SaaS applications are subscription based, and there is no license fee implying a lower initial cost. Having these manages the IT infrastructure which means lower IT costs for hardware, software, and the resources needed to achieve it.

  • Scalability

Since the software is cloud-based, the chances of scalability and integration with other SaaS offering increase. No additional server or software is required in a SaaS integration.

  • Easy Upgrades

A key benefit of the cloud-based software is that there is no need to install or update a particular tool manually. Once connected to the Internet, this job is taken care of by the service provider. SaaS software manages all updates and upgrades and cancels out the customer involvement to the maximum extent. It’s easier when the customer base is growing.

  • Customization

SaaS system allows the user to customise the application as per the needs and requirements of their particular business. It doesn’t involve affecting the common infrastructure because of the way SaaS has been architected. Customizations are unique to each company or user and are always preserved through upgrades.

  • Ease of Use

This online software comes along with a guide along with samples. The user can test the software functionality and features in advance. Users can also test software before actually purchasing it.

For a business, the ability to deploy the best software applications which deliver the latest functionality and are capable of multi-functionality at a lower investment are always the best options. The popularity of SaaS is increasing with time as it simplifies the deployment and reduces customer acquisition costs.


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