Software as a service (SaaS)

If you’re new to the concept of software as a service (SaaS), you’ve come to the right place. We’re going to delve into what SaaS is, what it can do for your business and more.

We’re also going to cover the most common use cases for SaaS, how it works, the main benefits of SaaS-based services, as well as the price.

It completely frees the user from complex hardware and software management. SaaS software applications are also referred to as proprietary, on-demand, or hosted software, as well as web-based applications.

Similar to platform service solutions (PaaS), SaaS applications require nothing more than a SaaS provider’s server to run. The provider is also in charge of managing access to the application, including performance, availability, and security. Some of the most common SaaS characteristics include:

• multitenant architecture
• easy customization
• better access
• customizing with a point-and-click interface

What is SaaS used for?

SaaS can benefit customers especially if it comes to modern, e-commerce businesses that do most of their work via the Internet.

The main purpose of SaaS applications is to offer out-of-the-ordinary, ready-to-use solutions that can easily meet a wide range of business needs such as analysis, calculation, storage, and communication.

SaaS offers multiple benefits and advantages:

• SaaS applications are quick to deploy
• the concept is quite affordable
• minimum infrastructure
• SaaS can work anywhere, as long as there’s an Internet connection
• security and backup
• high adoption rate
• accessibility and scalability
• compatibility

Since the user doesn’t have to install and run SaaS applications on their own devices or data centers, they are free to make other investments. Because of that, SaaS is perfect for businesses that need to improve:

• customer relationship management (CRM)
• content management
• sales management
• access management
• database management
• financial management
• human resource management (HRM)
• patch management
• project management

How does software as a service work?

SaaS services work through cloud delivery. A cloud service provider will host the application and related data using its own resources, networking, databases, servers, and infrastructure services. The independent software vendor (ISV) may also use a cloud application service provider to host the application in its own data center.

One of the biggest benefits of SaaS is that users don’t have to deal with software setup and maintenance, and software licenses are not required.

It provides customers with network-based access to the application. When new functionalities and features are deployed, users get access to them. That is the main reason they are often regarded as the best IT ticketing system solutions out there.

Examples of software as a service

The SaaS market is growing and expanding into new territories. It gathers a huge variety of software products and vendors. From small providers with a single product to dominant forces in the cloud landscape such as Google and AWS. One of the best things about SaaS products is that they are so diverse.

They range from IT business analytics tools and helpdesk software solutions to video streaming services. There are also SaaS solutions for monumental business applications such as billing, customer relationship management, sales management, email, etc.

Some of the most notable examples of SaaS products include:

• Salesforce
• LiveAgent
• Google Workspace apps
• Microsoft 365
• HubSpot
• Trello
• Netflix
• Zoom
• Zendesk
• DocuSign
• Slack
• Adobe Creative Cloud
• Shopify
• Mailchimp

What are the main benefits of SaaS-based services?

SaaS has many benefits, but we’ll highlight the most important ones.

• SaaS allows you to access sophisticated applications – it doesn’t require the user to buy, install, maintain, or update any software, middleware, or hardware. Businesses with limited resources can afford even the most sophisticated enterprise software, such as CRM and ERP.
• Users can pay only for the features they use – Saas allows users to save resources by automatically scaling according to the level of usage.
• Access to free client software – users only need a web browser to run most SaaS apps.
• Easy workforce mobilization – SaaS apps only require an Internet connection and a device to run. Therefore, they are a perfect solution for companies that need to mobilize their workforce frequently without worrying about security issues.
• App data access anywhere – since SaaS apps store data in the cloud, you can access them from anywhere, any time.

What makes software SaaS?

Among the characteristics of a SaaS are:

• multi-tenancy model
• automated provisioning
• single sign-on
• subscription-based billing
• high availability
• elastic infrastructure
• data security
• application security
• rate limiting/QoS
• audit

How much does SaaS cost?

Many pricing models work on a subscription basis. Users pay a subscription price or a monthly fee. Here are some pricing models that are based on the subscription model:

• free or ad-based – free service
• flat rate – annual or monthly subscription fee
• per-user – a fixed subscription price for every user
• per-user tiers – a single subscription model for multiple users
• usage-based or pay-as-you-go
• feature-based tiers
• freemium

Can I create and customize software as a service?

Saas is needed for achieving steady business growth, here is how to create your own SaaS in 4 steps.

1. Research the market

The global SaaS market is swarming with solution providers, which only increases your need to develop out-of-the-box solutions. Start by researching the market to understand your target audience, their main requests, the essential features, as well as your competitors. Understand the business models they adopt, and also don’t forget to check your options for distribution channels.

2. Create a plan for your product

Planning your product should include the functionalities and features of your SaaS solution and the customer base that will use it. In addition, you need to understand the recurring need for such a solution.

If you can understand what motivates your target audience to use your product, you’ll be able to create a solution that will address their specific pain points. You also need to plan the pricing strategy and the marketing campaign to properly advertise your product.

3. Determine your SaaS requirements

These are the features your SaaS product must have:

• multi-tenant architecture
• application and data security
• frontend UI/UX design
• backend data management
• third-party integrations
• user analytics and monitoring

4. Choose a technology stack

Every SaaS solution has two vital aspects – frontend (client-facing) and backend (server-side). For the frontend, you’ll need tools such as CSS, HTML, as well as JavaScript (Vue.js, Angular, and React).

For the backend, you need secure, scalable, and fast frameworks such as Ruby on Rails, .Net, Laravel, or Python. You should also think about the servers. Choose from:

• external servers
• physical servers
• remote servers

Watch a video about SaaS

LiveAgent helpdesk software is a great example of how SaaS (Software as a Service) can help businesses manage their customer service operations. The LiveAgent platform offers a powerful, cloud-based helpdesk solution that makes it easy to connect with customers and provide best-in-class customer service. Whether it be through a live chat system, ticketing system, or a knowledge base, SaaS gives you the power to create an optimal customer experience and always be up-to-date with the latest technology.

What is SaaS (Software as a Service)? | Eye on Tech02:14

Eye on TechMarch 15, 2020

Topics

• Software as a Service (SaaS)
• Cloud computing
• Benefits and drawbacks of using SaaS

Video summary

This video explains what Software as a Service (SaaS) is and how it is one of the three main categories of cloud computing. SaaS is a third-party application available over the internet with no physical connection to any one device. It provides productivity apps over the internet for businesses such as sales management, customer relationship management, financial management, human resource management, billing, and collaboration. SaaS eliminates the expense of hardware maintenance, licensing, and installation. It operates on a pay-as-you-go model that offers businesses flexibility and high scalability for any range of projects and needs. However, a notable disadvantage is that organizations must rely on outside vendors for the software and have little control for instance providers might experience service disruptions impose unwanted service changes or fall victim to a security breach.

Expert’s note

SaaS is a cost-effective, scalable and accessible solution, perfect for modern, e-commerce businesses. With a variety of use cases, it's revolutionizing the software industry.

Andrej Saxon Sales manager

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