Software as a service (or SaaS) is a way of delivering applications over the Internet—as a service. Instead of installing and maintaining software, you simply access it via the Internet, freeing yourself from complex software and hardware management.
SaaS applications are sometimes called Web-based software, on-demand software, or hosted software. Whatever the name, SaaS applications run on a SaaS provider’s servers. The provider manages access to the application, including security, availability, and performance.
SaaS Characteristics
A good way to understand the SaaS model is by thinking of a bank, which protects the privacy of each customer while providing service that is reliable and secure—on a massive scale. A bank’s customers all use the same financial systems and technology without worrying about anyone accessing their personal information without authorization.
A “bank” meets the key characteristics of the SaaS model:
Multi tenant Architecture
A multi tenant architecture, in which all users and applications share a single, common infrastructure and code base that is centrally maintained. Because SaaS vendor clients are all on the same infrastructure and code base, vendors can innovate more quickly and save the valuable development time previously spent on maintaining numerous versions of outdated code.
Easy Customization
The ability for each user to easily customize applications to fit their business processes without affecting the common infrastructure. Because of the way SaaS is architected, these customization are unique to each company or user and are always preserved through upgrades. That means SaaS providers can make upgrades more often, with less customer risk and much lower adoption cost.
Better Access
Improved access to data from any networked device while making it easier to manage privileges, monitor data use, and ensure everyone sees the same information at the same time.
SaaS Harnesses the Consumer Web
Anyone familiar with Amazon.com or My Yahoo! will be familiar with the Web interface of typical SaaS applications. With the SaaS model, you can customise with point-and-click ease, making the weeks or months it takes to update traditional business software seem hopelessly old fashioned.
SaaS Trends
Organizations are now developing SaaS integration platforms (or SIPs) for building additional SaaS applications. The consulting firm Saugatuck Technology calls this the “third wave” in software adoption: when SaaS moves beyond standalone software functionality to become a platform for mission-critical applications.
Advantages of SaaS
Gain access to sophisticated applications. To provide SaaS apps to users, you don’t need to purchase, install, update or maintain any hardware, middleware or software. SaaS makes even sophisticated enterprise applications, such as ERP and CRM, affordable for organizations that lack the resources to buy, deploy and manage the required infrastructure and software themselves.
Pay only for what you use. You also save money because the SaaS service automatically scales up and down according to the level of usage.
Use free client software. Users can run most SaaS apps directly from their web browser without needing to download and install any software, although some apps require plugins. This means that you don’t need to purchase and install special software for your users.
Mobilize your workforce easily. SaaS makes it easy to “mobilise” your workforce because users can access SaaS apps and data from any Internet-connected computer or mobile device. You don’t need to worry about developing apps to run on different types of computers and devices because the service provider has already done so. In addition, you don’t need to bring special expertise onboard to manage the security issues inherent in mobile computing. A carefully chosen service provider will ensure the security of your data, regardless of the type of device consuming it.
Access app data from anywhere. With data stored in the cloud, users can access their information from any Internet-connected computer or mobile device. And when app data is stored in the cloud, no data is lost if a user’s computer or device fails.
Some examples of SaaS
1.Google Docs
One of the simplest real-world examples of SaaS is Google Docs, Google's free online word processor.
In order to use Google Docs, all you need to do is log in on a web browser for instant access. Google Docs allows you to write, edit, and even collaborate with others wherever you happen to be.
Google Docs was launched in October 2012.
2. Dropbox
Dropbox is another simple example of SaaS in real life. Dropbox is a cloud storage service that lets businesses store, share, and collaborate on files and data. For example, users are able to back up and sync photos, videos, and other files to the cloud and access them from any device, no matter where they are.
Dropbox was founded in 2007.
References:
https://www.investopedia.com/terms/s/software-as-a-service-saas.asp
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