SaaS is a software development model in which a third-party provider builds applications using a cloud infrastructure and makes those applications available to the client over the Internet. Unlike an application installed locally on the device, to access the SaaS application the user only needs an Internet connection and a web browser. The application provider is the one responsible for ensuring maintenance, solving bugs and bringing new functionalities to the software. These operations translate into important savings for the business.
Software as a Service (SaaS) is a cloud-based software delivery model where the cloud service provider develops and maintains software for cloud applications, provides automatic software updates, and makes the software available to customers via the Internet, with pay-as-you-go. The public cloud provider manages all traditional hardware and software, including middleware, application software, and security. Thus, SaaS customers can dramatically reduce costs; can deploy, scale and modernize business solutions faster than if they were maintaining systems and software on-premises; and can predict total cost of ownership with greater accuracy.
In the early 2000s, the first generation of SaaS solutions were available in silos, inflexible and designed to solve a single business problem. Since then, SaaS has evolved dramatically. Today, modern cloud applications can encompass - and connect - everything from finance, HR, procurement and supply chain processes to commerce, marketing, sales and service solutions.
The first SaaS solutions appeared in the late 90s, when the term SaaS was initially coined. This new model gave much more efficient results than the ASP model. A single application instance can serve multiple users or clients due to the multi-tenant architecture. Local software installation was no longer required. In addition, it provided a way to collect, aggregate and centralize valuable application data.
For several years, software vendors have been sending IT professionals and business executives a veritable flood of messages about the benefits of cloud computing in its various forms. Some of these messages also targeted accountants, highlighting the advantages of operating expenses (OpEx) compared to capital expenses (CapEx). Others targeted the IT community, with references to scalability, on-demand capacity and the cloud's ability to take the mundane tasks out of infrastructure management, allowing IT staff to focus on business issues.
SaaS is not a new concept. In fact, web-based applications offered by Application Service Providers (ASPs) actually predate the concept of "cloud computing" as we know it today. Early applications offered using the SaaS model often focus on sales force automation (SFA) , customer relationship management (CRM), and web content management. Nura Software offers a full suite of SAAS applications for businesses, teams, e-commerce and personal projects.
From its inception, the SaaS model was designed to offer a set of important advantages over on-premises applications:
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Lower initial costs |
Eliminate the need for additional hardware and middleware.
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Predictable ongoing costs |
Eliminate the unpredictable costs of managing, patching, and updating software and hardware components.
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Fast implementation |
Get up and running quickly, in hours instead of months.
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Scalability on demand |
Scale instantly to meet the demands associated with a growing volume of data or transactions.
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Accessibility |
The information is available 24/7 from any location, from any device. |
The SAAS market is expected to continue to grow in the future as more businesses recognize the benefits of using the SAAS model for software applications. Many companies are moving away from traditional software distribution models and turning to SAAS because of the advantages it offers. Therefore, SAAS is likely to dominate the software distribution market in the near future.
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