Software-as-a-service (SaaS)

Trung Pham Duy - Feb 2024

Overview

  • Software-as-a-service (SaaS) is a form of cloud computing that delivers a cloud application—and all its underlying IT infrastructure and platforms—to end users through an internet browser.
  • It can be an ideal solution for large enterprises, small businesses or individuals that:
    • Do not want the responsibility of buying or maintaining infrastructure, platforms, and on-premises software.
    • Prefers simpler cost management through operational expenses (OPEX), rather than capital expense investments (CAPEX).
    • Have challenges that require minimal customization to solve.
    • Favor software subscription models.

The SaaS Model

Subscription model

  • SaaS apps largely rely on subscription models for provisioning software licenses.
    • Unlike a perpetual license, this software delivery model ties each account to a subscription that grants SaaS access for a period of time — usually on an annual or monthly basis.

X-as-a-Service

PaaS vs IaaS vs SaaS

  • The term as-a-Service generally refers to a solution that is managed by someone else so you can focus on what’s important

Examples of SaaS vendors

Software vendors provide SaaS-style software applications to meet any number of business needs from basic business applications to complex enterprise resource planning (ERP) suites.

  • SAP’s enterprise resource planning (ERP) software
  • Paychex’s human resource software
  • CA Technology’s enterprise software
  • Atos messaging SaaS solution
  • Salesforce’s customer relationship management (CRM) software
  • Slack’s messaging service
  • Microsoft Office 365
  • Dropbox’s file storage service

References