What is SaaS?

zeg solutions
4 min readNov 4, 2020

SaaS or Software-as-a-Service is one way to provide software based on a web server. In this way, the user no longer needs to install software on his personal system and can only use it with Internet access and a web browser. The cost model of these programs is usually in the form of subscription fees.

Many software companies today offer their products on such platforms due to the pervasive access to the Internet and easier management and updating. These include well-known applications such as Salesforce, Microsoft Office 365, Box, Dropbox, Slack, and the Google Apps service. SaaS, along with IaaS and PaaS, is one of the three main components of cloud-based services.

SaaS performance

The introduction of SaaS-based software can be traced back to the era of cloud-based computing. The approach of cloud computing is to provide services over the Internet and remotely. That’s why a way to present software on a cloud computing platform called SaaS was developed.

In SaaS, the software is hosted on an external server instead of on the user’s device. Access to SaaS-based applications is usually possible through a web browser using a username and password.

One of the major differences between this software release method and the software model installed on the user’s system is that in SaaS, there is no need for strong hardware from the user, because all the main and heavy processing is done on the server side. It also makes it much easier to upgrade and debug software systems because all components of the running software are available to the developer.

But there is another major difference between the payment method and the access fee. In SaaS mode, subscription fees are typically defined in terms of access time and a set of features and facilities available. While in the cost model, the software installed on the user’s device, the entire cost of the program along with its support services, may be received from him at once.

Benefits of SaaS

  • Overall reduction in the cost of using software due to the need for no maintenance as well as the purchase of additional hardware for organizations. Usually the initial cost of installing and training such programs is much lower than other solutions.
  • The co-payment model and the use of the pay as you go strategy (meaning you only pay as much as you spend) lead companies and organizations to be able to direct their costs at any given time to ongoing operations. So at any time they decide, they can upgrade a service or even take it out of the circuit.
  • Because SaaS-based applications are available over the Internet, users can use the software wherever the Internet is accessible and with any device.
  • Because these softwares are available through the Internet and browsers, they are no longer limited to specific operating systems and platforms. This feature not only allows software to be used on any device and platform, but also saves significant cost and time for software developers. Because there is no need to develop and maintain separate software, suitable for each platform.
  • Receive updates automatically and faster. As a result, users will not have to worry about how to do their software and security updates.

Disadvantages of SaaS

  • Like all cloud services, users’ access to the software depends on the service provider 24 hours a day, seven days a week. The optimal performance of user programs also depends on the actions of the service provider when they have applied security updates and patches. In this case, the user does not have the option to update their application.
  • SaaS-based services may become unavailable in some cases due to reliance on the Internet. For this reason, organizations and companies must be prepared for cases of lack of access to services.
  • Lack of program control, on the other hand, can cost organizations money. For example, imagine an organization that does not want to migrate to a new version of the program or incur the cost of training a new version to its employees.
  • Using SaaS services, like any cloud-based service, can be problematic. For example, organizations’ information and data may be leaked, which could jeopardize the security and safety of the organization and its users.
  • With all the ease of use and cost savings that these services come with, the end user may not experience the desired user experience and software quality due to the lack of access to a high quality Internet network and the remote location of the software.
  • But there is an important security point about such software that users need to be careful in addition to reviewing their agreement with the server. In SaaS-based software, user data is on the server side of the service provider. While in the program installed on the user’s system, such data is under the control of the user. This is one of the serious criticisms that free software promoters make of this way of presenting software, and even Richard Stallman has called it SaaSS or Service as a Software Substitute, meaning software as a substitute for software . Because he believes that in this case, the user does not have access to the executable file of his program. The location of the program is also the server of another person (company). Therefore, users will not be able to monitor or even change their program (referring to the four freedoms in the definition of free software).

In addition to the above, users should note in the contract text of such software the service provider’s obligations regarding data, user responsibility and quality assurance of the service, such as the amount of uptime and what arrangements for customers in case of receiving low quality service (SLA) Taken.

I suggest to read this powerful article about SaaS too :

How I made a SaaS webservice earning $1000 monthly profit

How to build a SaaS with $0

11 SaaS Pricing Hacks backed by Psychology

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