What is Software as a Services (SaaS)?

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Technology advocate and mobile application developer Hammad Akbar discusses SaaS.

Over the past few years, Software as a Service, or SaaS as it’s more commonly known, has grown to become a part of mainstream business. Global SaaS is an ever increasing, multi-billion dollar industry – and one that more and more people are getting interested in.

But, before you throw yourself in head first to the often complicated world of SaaS, it’s important to know a few of the basics first. Like, what actually is SaaS?

To help out all you newcomers, I’ve put together a simple guide to SaaS – full of facts about one of the modern world’s most interesting industries.

What is SaaS?

So, first up. What actually is SaaS? Well, as you might know already, SaaS stands for Software as a Service.

SaaS is an industry and business model for deploying business services in which a vendor or provider (the SaaS business) licenses software to a client. This is normally on a subscription basis and is centrally hosted by the vendor.

SaaS typically describes a cloud service, where consumers and customers are able to access software applications over the internet. These software packages could be anything from accounting tools to applications for planning and performance monitoring.

SaaS was named as such as the type of services that are deployed are normally rented rather than purchased up front. Clients will pay a monthly fee for continued support or will buy into a freemium business model.

SaaS is often seen as the evolution of the Application Service Provider (ASP) model.

Why SaaS?

Because of its accessibility and flexibility, SaaS is beneficial to companies and individuals for a large number of reasons.

Whilst SaaS companies often charge monthly rates to clients, they can be very cost effective, without any additional hardware or set up costs. Usage is normally controllable with scalable usage and pay-what-you-use services. A lot of other costs and add-ons are also picked up by the supplier.

Another plus of SaaS is accessibility. Cross device compatibility and real-time usage make SaaS an incredible versatile and desirable business model.

Business

Office software is the best example of businesses utilising SaaS. Businesses tend to look for one piece of software for a number of tasks, such as invoicing, accounting, sales, performance, marketing and more. But SaaS isn’t just limited to the office.

SaaS is also preferable to businesses as many pieces of software can be used company-wide – letting multiple departments and individuals have access at the same time. Although, the more users, the higher the cost normally.

2 Responses

  • How To Reduce SaaS Churn With A Well-Designed User Onboarding Process - Hammad Akbar May 2, 2016 at 1:16 pm

    […] churn is to be expected in the SaaS business, but what you may not know […]

    Reply
  • How To Reduce SaaS Churn With A Well-Designed User Onboarding Process - Hiring | Upwork December 14, 2017 at 5:02 pm

    […] churn is to be expected in the SaaS business, but what you may not know […]

    Reply
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