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What is a SaaS System and How Can They Benefit You

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What is a SaaS System and How Can They Benefit You

Read time 13 min read
What is a SaaS System and How Can They Benefit You

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SaaS Platform Definition

SaaS or Software as a Service is a type of cloud computing platform that provides you with a cloud application including platforms for users and an underlying IT structure. A SaaS system is an excellent solution for individuals, small businesses and large enterprises. The responsibility of maintaining your software platforms and infrastructure is eliminated. Minimal customization is necessary to solve challenges and software subscription models are favored. 

SaaS software decreases your upfront costs because you no longer need to invest in an IT infrastructure or purchase traditional software. The performance of your network hardware improves because the speed of your internet connection is determined by your service provider. There are numerous examples of SaaS services including:

  • Content management systems
  • Human resource software
  • IDEs or integrated development environments
  • Tools for customer relationship management

How Does the SaaS Model Work?

Your cloud service provider is responsible for managing the cloud environment hosting your software. SaaS based technology uses a multitenant architecture enabling pooled resources. Your SaaS provider handles general app maintenance, bug fixes and software updates. You use the web browser on your mobile devices or computers to interact with your software. You can connect to the other functions of your software with APIs or application programming interfaces such as SOAP or REST. 

SaaS ensures introducing new features to your customers is easier. The majority of SaaS applications are preconfigured. Everything is managed by your SaaS provider behind your apps such as hardware components and software requirements including:

  • Networking
  • Datacenter servers
  • Storage
  • Platforms
  • Middleware runtimes
  • Your app
  • Operating system
  • Data
  • Virtualization

SaaS apps are mostly reliant on subscription models to provision software licenses. This is different from a perpetual license because the software delivery model connects your account to a subscription providing you with SaaS access for a limited time. Your subscription will most likely be on a monthly or annual basis. Your fee provides access to ongoing support and product documentation through your service level agreement. You might be charged extra support fees for customized code changes.

Did you know? SaaS programs make upwards of $141 billion annually. 

What is a SaaS System and How Can They Benefit You

Popular tax software Quickbooks is a SaaS application. (Designmodo)

PaaS vs IaaS vs SaaS

The SaaS platform definition or architecture is in reference to a solution management system provided by someone else. This offers you more free time to focus on your business. Your Saas services can include PaaS or Platform as a service and IaaS or Infrastructure as a service. The management of IaaS services takes place on the actual network and servers for storage and virtualization in the cloud. You use a dashboard or API to access your rented infrastructure.

You manage your operating system, middleware and apps. Your provider provides networking, storage, hardware, servers and hard drives. Your provider handles outages, hardware issues and repairs. PaaS provides you with a software application platform from an outside provider. Since you are responsible for your data and apps, this is a good solution for programmers and developers. PaaS offers you a platform to run, develop and manage your apps and eliminates the need to maintain the infrastructure. 

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Benefits of the SEO SaaS Platform

One of the best benefits of any SEO SaaS platform is running using an internet browser. The operating system you use for access is irrelevant. This means your application is accessible whether you want your application to run on Windows, Linux machines, Mac or smartphones including iOS and Android. This is the reason SaaS applications offer so much versatility in different ways. 

Any potential compatibility issues between your SaaS application, software and operating system are eliminated. You can use this system for desktop or office computers and mobile devices including smartphones and tablets. SaaS applications were created to be mobile-friendly so you can use them for a wide range of circumstances and situations from anywhere. 

What is a SaaS System and How Can They Benefit You

(SEMRush, Designmodo)

Hardware

Another key benefit of SaaS is you can use it with no initial investment. On-premises software means more than compatible hardware and software configurations for your business desktops and PCs. The need to invest in network switches and additional servers for your IT structure services required for software support is eliminated by SaaS. Even if you have a small business, you can afford to access cloud application software tools because they are SaaS based. 

In the past, only large enterprises and corporations could afford this technology. SaaS is also scalable enabling you to increase or decrease the number of users. All you need to do is make the appropriate adjustment to your billing plan. You will not need to place expensive electronics in storage due to a decrease or purchase additional hardware for expansion. 

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Did you know? SaaS software makes up nearly 25% of all software programs available.

Patches and Updates

Since your Saas software runs in the cloud, your software is centrally updated by your vendor with no negative impact on your user’s business operations. This is the opposite of on-premises software, generally mandating endpoint security testing and compatibility before you can install routine patches and updates. The SaaS model effectively eliminates pitfall testing, slowing down your cycle of development. 

New features are accessible to your users and security updates are installed as quickly as possible. Your on-premises software remains vulnerable until testing is completed by your staff for IT service management.

CloudStorage

When your data is stored on-premises, you need to make an investment in reliable backups in addition to a disaster recovery plan. This mitigates serious hardware crashes potentially resulting in a significant data loss. SaaS ensures your data is saved on a regular basis in the cloud. Not only does this eliminate any redundancy, but your employees can switch from one device to another without the loss of data or work. No matter which device your employees use, all they need to do is log into a single account. 

What is a SaaS System and How Can They Benefit You

Market Reach

SaaS enables you to supply most of the market with a software service as opposed to a targeted or limited segment of the market. The result is increased accessibility and less expensive pricing for every size business. Your users gain access to services generally unavailable. This will improve and expand your business services, general opportunities and productivity. 

Analytics and Data

Your SaaS platform operates using a centralized system ensuring easy data capture for analytics use. Using SaaS software provides you with visualization tools, intelligence and reporting for critical insights into the operations of your business. Your workflows are efficiently streamlined resulting in savings. You do not have to worry about piracy resulting in damaged pricing models or access because your paid subscription ensures these costs are covered by your supplier. 

What is a SaaS System and How Can They Benefit You

(Google Analytics, Search Engine Roundtable)

Advantages of the SEO SaaS Platform

SaaS eliminates the need for your business to install and run software and applications in your data center and on your computers. You effectively eliminate costs for maintenance, hardware acquisition, provisioning, support, installation and software licensing. 

Flexible Payments

Instead of buying software or the hardware required for support, you can subscribe to a SaaS provider. In most cases, you will pay for your service monthly. When your costs are transitioned to a monthly expense, you have better control over your budget. If necessary, you can stop using your SaaS provider at any time to eliminate your recurring fees. 

Scalability

As a cloud service, SaaS provides you with scalability. This means your customers can access fewer or more features and services on-demand. 

Accessing Sophisticated Applications

You do not have to purchase, update, install or maintain any software, middleware or hardware once you provide your users with SaaS apps. You can even access sophisticated applications including CRM and ERP. This is affordable if you do not have the resources to purchase, manage and deploy the necessary software and infrastructure required. 

Automatic Updates

When you rely on your SaaS provider, you will no longer need to purchase the software. All patch management and updates are performed automatically. This reduces the burden for your IT staff. 

What is a SaaS System and How Can They Benefit You

(Ahrefs, Backlinko)

Pay Only for Usage

You only have to pay for what you have used. You will save money since your SaaS service scales up and down automatically depending on your usage. 

Free Client Software

The majority of your SaaS apps are run directly through your browser. You do not have to download or install software, although plugins are necessary for specific apps. This eliminates the need to buy and install software for your employees. 

Mobilizing your Workforce

Mobilizing your workforce is simple since your users have access to SaaS data and apps from any mobile device or computer with an internet connection. You no longer need to develop apps for different types of devices and computers because this has already been done by your service provider. Specialized experts are no longer necessary for the management of security issues frequently seen for mobile computing. Your service provider will make certain your data is secure regardless of the devices you are using. 

Accessing App Data

Your app data is accessible anywhere because it is stored in the cloud. All that is required is a mobile device or computer with an internet connection. Since all data storage is in the cloud, if the device or computer of a user fails, no data will be lost. 

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Characteristics of SaaS Based Technology

Understanding the characteristics of the SaaS model is simple when compared to a bank. Banks protect customer privacy and offer secure and reliable services on a massive scale. The same technology and financial systems are used by all customers with no concerns personal information will be accessed without authorization. The SaaS model characteristics are similar including the following. 

Multitenant Architecture

Multitenant architecture is when one common code base and infrastructure is used by all applications and users and centrally maintained. All SaaS customers use the same code base and infrastructure to ensure vendors can innovate quickly to save time maintaining several different versions of outdated code. 

Improved Access

Network devices receive better access. Monitoring data use and managing privileges is simple because all of the users receive the same information at the exact same moment. 

Simple Customization

Every user gains the ability to customize applications easily according to their individual business processes. The common infrastructure is not affected. Due to the architecture of SaaS based technology, customizations are unique for every user or business. Your customizations are maintained through upgrades. This allows your SaaS provider to make upgrades more frequently ensuring a lower cost and decreased customer risk. 

What is a SaaS System and How Can They Benefit You

(Gmail interface, Techcrunch)

Harnessing the Web

If you have ever used My Yahoo! or Amazon.com, you have used the same web interface as a traditional SaaS application. You can easily customize your point-and-click as opposed to requiring months for updating typical business software. 

SaaS Trends

SIPs or SaaS integration platforms are currently under development to create additional SaaS applications. This is often referred to as the third wave regarding software adoption. Once SaaS goes beyond software functionality for standalone software, mission-critical applications can be performed using this platform.

Can SaaS Based Services be Customized?

Current web-based software has the flexibility of customization for both individual users and specific businesses. You have the ability to customize your UI or user interface in accordance with the feel and appearance of the program. Specific areas can be modified including data fields. This will change the data appearing. There are numerous process features you can turn on and off any time you choose. 

Users can make changes to their workspaces including task lists or dashboards. Only the necessary information will be displayed for the optimization of individual work styles and preferences. Both SaaS systems and on-premises systems are completely customizable for every client. Software based in the cloud such as SaaS provides you with more flexibility and agility for your business. 

Who Owns the SaaS System Data?

In most instances, you will maintain ownership of your data in a SaaS system. The majority of SLAs or service level agreements confirm data ownership for your business on the servers of the vendor. You are able to retrieve your data. Most contracts have prepaid contingencies built-in ensuring you will receive data access even if the SaaS vendor is no longer in business. You receive an ownership guarantee for your data. Most vendors allow the exportation of your data with local backups at any time. 

SaaS vendors insisting on data ownership are extremely rare. If you see this noted in your SLA, do not sign because you need to use a different vendor. An SLA is a fairly complicated and important document. You need to thoroughly examine the SLA before you commit to the SaaS provider. Your SaaS provider is responsible for providing your business with security, software updates and support. 

As a client, your responsibilities include notifying your provider in a timely fashion if you experience any issues. You should receive a service guarantee for the ways you can respond if you receive poor service and your level of uptime. 

Are SaaS Based Services Safe in the Cloud?

Your SaaS provider is already aware you are most likely uncertain of cloud security. This means they will work hard to prove your data will remain safe in their servers. A lot of SaaS providers use extremely secure cloud services for deploying and storing data and software. In most cases, your data is at a higher risk when stored in-house because your IT security budget is most likely less. Data can unintentionally be leaked by your employees or gaps in security inadvertently introduced. 

The prediction is until at least the year 2022, a minimum of 95 percent of failures in cloud security will be the fault of the business. There is a consistent debate regarding ERP system cloud security. This is a representation of one of the only remaining software segments resulting in security failures. One of the key problems is weak passwords resulting in more security issues than hackers. 

History of Software as a Service (SaaS) Model

A speech was made by John McCarthy in 1961 to MIT students. This renowned computer scientist was honored with the Turing award for AI or artificial intelligence work. He said cloud computing evolved as a means to share computing power. Although this idea is far from recent, the technology necessary for SaaS was not available until the late 1990s. This is when companies were founded for the creation of cloud software. Traditional enterprise solutions became available using a SaaS model. 

In the beginning, SaaS enterprise software was not taken seriously. During the last 10 years, the rapid adoption of SaaS has resulted in numerous businesses using SaaS for the first time. The adoption of cloud software is increasing more than all cloud technology segments including IaaS and PaaS products. SaaS has become the way of the future. 

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FAQ’s

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A software allowing applications to be delivered through an internet connection.
SaaS platforms are accessed through the internet, rather than installed on your device.

The implementation of inputs that need to be considered and installed prior to adaptation of a SaaS application.

SaaS and a cloud are slightly different. SaaS is related to cloud computing, however, not all SaaS systems are in the cloud.

Yes, Gmail is accessed through the web.

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Daniel Urmann

Author Bio:

Daniel Urmann is the co-founder of Diib.com. Over the past 17 years Daniel has helped thousands of business grow online through SEO, social media, and paid advertising. Today, Diib helps over 150,000 business globally grow online with their SaaS offerings. Daniel’s interest include SMB analytics, big data, predictive analytics, enterprise and SMB search engine optimization (SEO), CRO optimization, social media advertising, A/B testing, programatic and geo-targeting, PPC, and e-commerce. He holds a Master of Business Administration (MBA) focused in Finance and E-commerce from Cornell University – S.C. Johnson Graduate School of Management.

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One thought on “What is a SaaS System and How Can They Benefit You

  • This article is fantastic and I got some good information by reading this. It is very helpful. Thank you and good luck with the upcoming Blog. We are also providing Managed IT service.

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