Cloud computing is surely taking the world by storm and it is catching fire in even those industries, where the use of technological innovation was very rare.
Cloud computing offers numerous advantages and since its application is feasible for even small and medium-sized businesses, there is no surprise in its burgeoning uses. When it comes to different platforms of cloud computing then the discussion can go very long and therefore, in this blog post, we are going to get familiar with only Software as a Service.
If you are running a business and have the vision to take it to the next level then you will need to acculturate to the cloud computing platform and knowing the SaaS platform in a detailed manner will be your first step towards this advancement. By the look of things, it is clear that you will never be able to utilize a technology if you are not familiar with it and the same goes for SaaS. So, let’s enter into the world of SaaS and understand it in a detailed manner.
What is SaaS?
The Software as a Service or SaaS is a computing platform or software distributed model in which a third party provides application and makes it available on the internet. SaaS is one of the three categories of cloud computing platform; Infrastructure as a Service and Platform as a Service. SaaS has become a defining force of the modern economy and a part of mainstream technological solution because of the strong showing of companies like Salesforce.
In the SaaS model, data and application can be accessed from anywhere over the internet and this gives the power of global accessibility. One of the key advantages of using SaaS is ease of use. Even after shifting to the cloud platform, the user gets the opportunity to work on the same interface. So, there is no steep learning curve.
How SaaS works
By using multitenant architecture, third party cloud vendors are able to deliver cloud hosting services to thousands of businesses through SaaS. You should know that the cloud component simply implies an active connection to the internet and those devices and browsers that make access possible. All the parts that complete software, codes, algorithms, physical hardware in the form of servers are managed by the third-party cloud providers. So, a user of the SaaS model will not have to invest even a single dime in server or software licensing owing to cloud vendors.
So you can simply say that in the SaaS model, the cloud vendors host and maintain the server, database, and code that defines the application. Even the pricing model of SaaS is completely different and it acts as an advantage for the user. As a business owner, you must be aware of the fact that on-premise applications are purchases through a license and this means the user of the software owns the license. The user has to pay almost 20% per year in both support and maintenance fees. But in the SaaS model, buyers pay on annual or monthly basis which includes all different types of fee. So by using the SaaS model, users are able to spread the expense over time.
What are the characteristics of SaaS?
· Accessed over the internet
· Basically managed from a single location
· The users don’t have to deal with hardware and software maintenance and updates
· Hosted over a remote server
What are the benefits of SaaS?
Reduced management and increased productivity
One of the best advantages of the SaaS model is that the headache of maintenance is less and you are able to increase your productivity. Small businesses, government organization and all other firms using the SaaS model don’t need all the parts of software like licensing, hardware, future demands, and workforce for consuming services. A major part of software maintenance is automatic in the case of SaaS model and this is why it is so popular. The team members of a firm can access the advanced and latest feature of the software without getting bogged down with software maintenance. In the end, productivity will always be higher at those places where the SaaS model will be used.
You will be dumbfounded to know that the SaaS-based model increases the profit by 100 percent for IT and software-based companies. SaaS model simply means that you will be paying rent for using the software and computer instead of paying upfront for everything. This will surely help the IT and software-based companies to reduce their overall expenses without compromising on their productivity and business solution. The cost-effectiveness of the SaaS model allows businesses to increase their productivity and this is how most of the IT and software-based firms are able to increase their profit.
Scalability and Integration
The cloud computing platform is known for its scalability and the same applies to the SaaS model. This proves to be the order of the day for small and medium-sized businesses owing to their chances of growth. In addition to this, the integration with other SaaS offering further makes the SaaS platform more advantageous. In comparison to the traditional model, users will never need to buy another server or software while using the SaaS model. They only need to enable a new SaaS offering and in terms of server capacity planning, the SaaS provider will own that. So, with the power of scalability, small and medium-sized businesses are able to shape their growth in a much better way.