What is SaaS

What is Software as a Service?

Software as a Service (SaaS) has become one of the most popular delivery models for software in use today. Many software development teams, product development groups, and software service providers have chosen this delivery model for their clients. What is Software as a Service? SaaS is the combining of three elements into one delivery model: Software, hardware, and services.

On Demand Software Service

Software as a Service is a licensing and provisioning software model that enables it to be provisioned and maintained remotely through the Internet. It can be called “on Demand software,” which used to be known as “off-demand software” by Microsoft. The difference between this delivery model and traditional on-site computer hardware-based software installations is that the latter is sold on a monthly, quarterly, or annual billing cycle and requires upfront payments to use the software.

Unlimited. Scalable. Available.

With SaaS, on-demand use is unlimited – your business applications are always available, as long as there is an Internet connection. Software purchase is similar in that you can pay for only the features you want when you need them. The difference is that SaaS delivers the application and related resources to you, so there is no need to purchase storage, network, or hardware to run your software applications.

Software as a Service

SaaS is a Highly Versatile Toolset

In contrast to on-premises software usage, which is often costly and time-consuming, SaaS delivers a cost-effective, easy-to-use, and highly versatile set of tools, applications, and data applications from a remote vendor. Instead of purchasing, maintaining, and supporting expensive software on-premises and hiring IT professionals to maintain its availability, a SaaS service provider provides the entire infrastructure, including software, hardware, and network, at a meager cost.

Inexpensive Adaptability

SaaS offers the same scalability, reliability, and flexibility as traditional computing models – meaning that businesses can quickly adapt their software to new needs without investing a lot of money into the process. Moreover, companies will partner with other organizations and use one set of tools for internal operations and another set of tools for external operations. Consequently, they can scale up and down quickly, making the most of their available resources.

No Extra Purchases Required with SaaS

Many customers prefer SaaS because they do not have to purchase storage, hardware, or network equipment. Another advantage is that they don’t require maintenance or upgrades on the front-end, so they save time and money in these instances. Furthermore, the use of SaaS reduces inventory requirements and eliminates the need for storing inventory on-premises. What is Software as a Service, then, if not a perfect choice for many businesses? Well, there are a few cons as well.


To use SaaS, you will need a gateway web application that connects a customer’s website with a SaaS offering. A number of these applications are available, such as:

  • Joomla
  • Drupal
  • ZenCart
  • PayPal

While these are all intelligent choices, they all share some similarities. A few other companies have applied SaaS solutions, including:

Still, these choices are somewhat limited and not always an excellent choice for a proper SaaS solution or enterprise software license.
Before determining what enterprise software is, it is essential to understand SaaS. You should thoroughly research both terms to determine what works best based on your business application.

Software as a Service Helps Businesses Move Quickly

It would be best if you also understood that no matter which vendor you purchase your application from, whether you use a SaaS model or an on-premise model, you will be taking on some risk. Not necessarily bad, especially if you are the owner of a business that changes focus frequently or pivots according to your customers’ desires.