If a person needs to travel around a lot in comfort, it is logical to buy a car. But if travel is rare, it is easier to pay for a taxi or carsharing service. In this case, the costs are limited to the service – getting from point A, to point B. In this case, the need for repairs, insurance and petrol prices are not part of the concern.

Similarly with software. SaaS in an IT environment can be compared to taxi or carsharing: you need the service, pay for the subscription and use it. If there is no more need for the service, the payments can be discontinued.

What is SaaS?

SaaS (software as a service) is a service model in which the subscriber receives online access to the software needed, but is not responsible for its installation, updating and maintenance.

As a rule, SaaS is a cloud solution. In other words: computing facilities (software) are located on remote servers in the service provider’s area of responsibility, and the customer receives access to the service after payment through a browser, mobile application, or API.

Key features of the SaaS model:

• is used remotely;
• there is an opportunity for collaborative work of multiple users within the system;
• Various payment schemes for access – freemium model, the subscription fee for a selected period, lifetime licence;
• Serviceability, upgrade and maintenance activities are the sole responsibility of the service provider.

SaaS services are a common phenomenon that many people encounter daily. The low financial entry threshold and versatility of the subscription model make them in demand in any market niche: from corporate accounting to personal photo processing.

Examples of SaaS services: cloud file storage Dropbox, visual editor Canva, customer management system amoCRM.

Advantages of SaaS platforms

Like any IT product, SaaS solutions have advantages and disadvantages. Let’s talk about the pros.

Low financial costs

The primary billing scheme for most SaaS services is subscription fees. This means that the customer does not need to buy a product license or sponsor a data management system (DBMS). Servers, communication engineering and telecommunication infrastructure are the responsibility of the service provider.

Rapid deployment

Enterprise deployment of multi-purpose software is a lengthy process of several months. Using SaaS solutions eliminates the need to prepare the hardware, and the configuration of cloud software takes days. Everything a service purchaser needs is already installed, tested and working, and all they need is a device connected to the network.

Easy scalability

With SaaS, business growth does not require complex schemes with the purchase of additional hardware and software configuration. New workstations, branches and subscriber bases can be easily connected to the existing system. Just as easily, the existing configuration can be expanded as needed by plugging in a new module to solve specific tasks.

Protection from physical damage

User data in SaaS systems is encrypted and stored in special warehouses – data centres. By paying for cloud software, the client can be relaxed about the threats and consequences of physical damage to information.

Also, almost every saas development company by default offer an automatic backup option. Data lost in case of failure, error or deliberate attack will be recovered. Important: Tier I-IV compliance (data centre reliability level) is a prerequisite for any data center certification.

Automatic update

Product version upgrades are notified by the user via system messages, software operations are the vendor’s responsibility. Updates are seamless and secure: there is no risk of losing important data during an unattended installation. The client uses the most up-to-date version of the software.

Ubiquitous availability

All one needs to use the SaaS model is a web browser and a device connected to the network. No matter whether the company uses PCs, tablets or smartphones. It doesn’t matter if employees are in the office or telecommuting. In any case, each of them will get full access to the corporate network and the required service.

The advantages of the SaaS model are obvious. In addition, this approach has another important advantage – it allows medium and small businesses to benefit from high-level IT products without going over budget.