SaaS is a software licensing and delivery model on a subscription basis and is centrally hosted. SaaS is also known as "on-demand software" and web-based/hosted software. SaaS is one of three main categories of cloud computing, alongside infrastructure as a service (IaaS) and platform as a service (PaaS). A range of users use SaaS applications. Products range from personal entertainment to advanced IT tools. Unlike IaaS and PaaS, SaaS products are frequently marketed to both B2B and B2C users. According to a recent McKinsey & Company report, technology industry analysts predict further growth in the SaaS industry and expect to see the market capitalisation of $200 billion by 2024.
How does SaaS work?
SaaS is a way of delivering software through the internet. Instead of installing the software on your own computer or server, you use it over the internet, like using a website. The company that provides the software takes care of hosting and managing the application and data on their servers, which you can access from any device with an internet connection. To use a SaaS application, you usually just need to open a web browser and log in. Organisations using SaaS applications are not tasked with the setup and maintenance of the software. They simply pay a subscription fee to gain access to the software, which is a ready-made solution. SaaS is closely related to the application service provider (ASP) and on-demand computing software delivery models where the provider hosts the customer's software and delivers it to approved end users over the internet.
The software-on-demand SaaS model offers customers an unparalleled level of accessibility to an application that is specifically designed for cloud-based distribution. The provider gives customers network-based access to a single copy of the application, ensuring that all customers have the same source code. This means that when new features or functionalities are released, they are made available to all customers, ensuring that everyone benefits from the latest improvements. Customers can choose to store their data locally, in the cloud or both depending on their service-level agreement (SLA). With SaaS, you can enjoy hassle-free software access, constant feature updates, and data storage flexibility.
Organizations can easily integrate SaaS applications with other software using application programming interfaces (APIs).
1. SaaS vs on-premises: How do I choose? The first step to answering this question is to determine the complexity of your business. Answer a few questions about your business to help you determine if SaaS is the best choice: How specialized is your business compared to others in your industry? Do off-the-shelf products offer the functionality you need? What level of software customisation do you anticipate needing? What is your budget? As mentioned above, SaaS subscription payment models help companies with smaller budgets spread the total cost of ownership over time, so even small businesses can adopt robust, modern software.
2. What are the steps involved in implementing a SaaS solution? The steps involved in implementing a SaaS solution typically include defining your requirements, selecting a provider, configuring the application to meet your needs, testing the application, training your staff, and migrating your data to the new system. Depending on the complexity of the application and the size of your organization, the implementation process may take several weeks or months.
3. How do I ensure data security with a SaaS solution? To ensure data security with a SaaS solution, you should select a provider that offers robust security measures, such as data encryption, multi-factor authentication, and regular security audits. You should also ensure that your staff are trained in data security best practices and that you have a plan in place to handle data breaches or other security incidents. For most companies, data is at more risk in-house, where there’s less budget dedicated to IT security and where employees or others could unintentionally leak data or introduce gaps in security.
4. How do I integrate a SaaS solution with other systems? To integrate a SaaS solution with other systems, you should work with your provider to identify the best integration options. Many SaaS providers offer pre-built integrations with popular systems such as CRMs and ERPs. Alternatively, you can use an integration platform as a service (iPaaS) to connect your SaaS solution with other systems.
5. How do I ensure user adoption of a new SaaS solution? To ensure user adoption of a new SaaS solution, you should involve your staff in the selection and implementation process, provide thorough training, and offer ongoing support. You should also communicate the benefits of the new system to your staff and encourage them to provide feedback on their experience using the application.