"SaaS"

Software as a Service (SaaS) is application software that is hosted on the cloud and accessed over the internet using a web browser, mobile app, or thin client.

The SaaS provider is responsible for running, managing, and maintaining the software and the infrastructure it runs on. Customers can simply create an account, pay a fee, and start using the software.

Some people believe that the origins of SaaS can be traced back to the 1950s when applications running on mainframes were delivered to remote terminals. However, SaaS as we know it today began in 1999 when Salesforce launched its customer relationship management (CRM) system as cloud-hosted software accessed through web browsers.

SaaS leverages cloud computing infrastructure and the benefits of scale to offer customers a more efficient way to adopt, utilize, and pay for software. All SaaS applications possess these attributes:

• SaaS applications are designed to be deployed on the cloud.?

The SaaS software provider may choose to host the application using its cloud infrastructure or with a cloud services provider like Amazon Web Services (AWS), Google Cloud, or Microsoft Azure. Utilizing an established cloud service provider allows the SaaS provider to deliver the scalability and worldwide reach that certain customers may need.

• SaaS apps can be used by any customer with an internet connection and a device like a computer, phone, or tablet.

They usually work in any web browser and, on mobile devices, SaaS apps can work better with a mobile or tablet app. Some SaaS apps, such as Adobe Acrobat, may need a special program that users download and install on their computers.

• SaaS applications use multi-tenant architecture.

In which a single instance of the application serves every customer. For security and data privacy, each customer's application data, user data, system data, and custom configurations are segregated from those of other customers.

Most importantly, SaaS applications require little to 'No Management' and 'Zero Maintenance' from the customer.?The SaaS vendor is responsible for:

• Managing and overseeing all the servers, networking devices, storage hardware, and operating software necessary to operate the application.
• Implementing feature updates and security patches as required.
• Supplying load balancing, redundant infrastructure, data backup, cloud security, and disaster recovery services to avoid downtime and adhere to the performance, availability, and data protection standards outlined in the service level agreement (SLA).

Additionally, many SaaS providers offer an application programming interface (API) that allows their clients to integrate the SaaS application with other SaaS or traditional software applications.

Today SaaS is the most common public cloud computing service and the dominant software delivery model. Many of the software tools used by workforces, such as Slack for messaging and Dropbox for file storage and sharing, as well as important business applications like enterprise resource planning (ERP) and human resources or workforce optimization platforms, are delivered using the SaaS model.

Compared to conventional software installed on company premises, SaaS provides businesses of varying scales—ranging from small startups to large global corporations—with the advantages of quick time-to-value, minimal to no management costs, and predictable expenses.

This popularity continues to surge. Industry analyst Gartner forecasts worldwide SaaS software revenues to exceed USD 145 billion by the end of 2022 another analyst, International Data Corporation (IDC), projects the worldwide market for SaaS will grow to USD 302.1 billion by 2025 EbookGenerative AI and the value of hybrid cloud.

• Software as a Service (SaaS) applications come with a wide range of subscription pricing models that differ from traditional software licensing. These subscription models provided access to the software and related services for a specified period at a fixed price or a menu of fixed prices.?
• Free or 'freemium' pricing Many SaaS vendors provide a free trial version of the software that customers can use for a short period, typically a week or a month. These free trials usually give access to all the software's features but may limit the frequency or extent of use. Some do not even require a credit card.?
• Some SaaS companies offer 'freemium' versions of their applications. These versions are always free and offer a limited but useful subset of the full product's features. Others are not limited but periodically require users to click on displayed advertisements before continuing to work. SaaS providers hope that freemium users will eventually upgrade to a paid version of the software.?
• Monthly or annual tiered subscription pricing for small and mid-sized businesses, SaaS products typically offer pricing 'tiers' based on feature set or usage level. For example, a SaaS email marketing solution might offer a 'standard' tier for up to 5,000 contacts at a certain price per month, a 'pro' tier for up to 20,000 contacts at another price per month, and a 'business' tier for 100,000 contacts plus landing page design and hosting at a different price per month.
• ?For large companies, SaaS vendors can offer an 'enterprise' tier that allows a more granular selection of features, priority support, special SLA terms, and even negotiable pricing. Tiered pricing allows customers to select the best plan based on their functional needs and budget and facilitates scalability by moving up to the next tier easily.?
• Most tiered subscription pricing offers discounts to customers who pay for a whole year upfront and a pro-rated price adjustment for customers who switch tiers mid-subscription.

The advantages of SaaS are best understood when compared to traditional software, which is installed and managed on on-premises infrastructure.?

• SaaS provides faster adoption and time-to-benefit. Customers can purchase and start using SaaS applications immediately, sometimes in minutes. This is for a minimal upfront cost, essentially the first month's subscription cost. In comparison, traditional software might require purchasing and provisioning servers, installing software on every user's device, and budgeting for and purchasing a full license for every user.?
• It provides access to new features and versions as soon as they're available and it often updates features and adds functionality several times a week without customers even noticing and by upgrading the interface and user experience without disrupting the customers' work.?
• This is in contrast to traditional on-premises software, where periodic upgrades can be costly and disruptive, causing customers to wait months for the functionality in a new version or even skip some upgrades altogether.?
• SaaS enables cost-effective, on-demand scalability. Customers can scale SaaS applications up and down as needed by simply upgrading or downgrading tiers or purchasing more capacity.?
• In comparison to traditional software, which forces customers to purchase excess capacity in anticipation of usage spikes—a capacity that sits idle until needed.
• SaaS offers predictable costs and significantly lower overhead and there's no need to budget for infrastructure to run the software, for periodic software upgrades and the infrastructure to support them, and—most importantly—for in-house IT staff to install, upgrade, and maintain the software. Almost all the expenses go directly in using the software.

Despite the benefits it offers, SaaS comes with potential risks and challenges that customers, especially enterprise customers, should be mindful of, and due to the ease with which users can start using SaaS apps, they may spread throughout an organization without the knowledge of the IT staff, a situation referred to as 'shadow IT,' which can present security risks. Essentially, if IT staff are unaware of the software being used by users, they cannot ensure its security.

Consequently, shadow IT can compound existing poor security practices, such as using the same password for multiple applications, and increase the organization's overall susceptibility to attacks.

Another possible risk is vendor lock-in, which refers to the difficulty of moving to another SaaS vendor when the current vendor's application no longer meets the customer's performance, functionality, or business requirements.

For instance, if a SaaS application relies on proprietary business logic or a proprietary technology stack, transitioning to another SaaS application without significant tradeoffs may be challenging or impossible.

SaaS, PaaS, and IaaS represent the three primary 'as a service' computing models provided by cloud service providers. Each model caters to a different type of cloud computing customer and offloads varying levels of IT management to the cloud service provider.

• SaaS, as mentioned in detail earlier, is suitable for customers who wish to purchase and use a pre-built, cloud-hosted software application via an internet connection. SaaS offloads all software development and infrastructure management responsibilities to the cloud service provider.
• PaaS, or platform-as-a-service, offers a complete, fully managed cloud-hosted platform—hardware, software, development tools, and infrastructure—via an internet connection for customers aiming to develop their own applications. PaaS enables software development teams to rapidly and affordably build, test, deploy, manage, update, and scale applications compared to the work involved in building and managing their own platform on-premises.
• IaaS, or infrastructure-as-a-service, provides on-demand access to cloud-hosted compute, network, and storage resources on a pay-as-you-go basis. IaaS is suitable for customers who desire in-house control over their applications and platform but want the flexibility to scale and downsize infrastructure resources as needed, without the high cost of building and managing an on-premises data center suitable for highly variable or 'spiky' workloads.

This information forms the basics of SAAS, and although it's a vast field, we cover the major aspects of that. Tech Superior Consulting offers SaaS applications that meet client requirements related to solution services to safeguard your digital assets. Let us guide you through the challenges of SAAS. Contact us to explore how we can address your specific IT needs.