Software as a Service, commonly called SaaS, is a software delivery model in which users access an application as an online service rather than purchasing and installing a traditional software package on every device.
SaaS has become common across organizations of many sizes because it can simplify access to business applications and reduce some of the infrastructure work associated with traditional software deployment.
What is SaaS?
In a typical SaaS arrangement, the software provider manages the application and supporting infrastructure, while customers access the service through a browser or application.
Common SaaS categories include communication, customer relationship management, project management, accounting, document collaboration and analytics.
How a SaaS model works
A simplified SaaS model can be represented like this:
User
The customer accesses the application through an approved browser or application.
Service Provider
The provider operates the software, infrastructure and supporting services.
Online Access
Data and application functionality are made available through an internet-connected service.
Why businesses use SaaS
SaaS can make it easier for organizations to provide employees with access to software without deploying and maintaining every application locally.
Businesses may also use SaaS because services can support distributed teams, recurring software updates and centralized administration.
Common advantages
Depending on the product and implementation, SaaS can provide several practical benefits.
- Access from multiple locations and devices.
- Centralized service management.
- Reduced need for local software deployment.
- Potentially faster access to new product features.
- Easier collaboration across distributed teams.
SaaS does not remove every responsibility
Using a hosted application does not mean the customer has no security or data-management responsibilities. Organizations still need to manage accounts, permissions, integrations and the information they place in the service.
Businesses should understand the provider's security controls and the customer's own responsibilities before moving important data into a SaaS platform.
Security considerations
Before adopting a SaaS product, organizations should review relevant security capabilities and practices. Important areas may include authentication, access controls, data protection, audit logging and account management.
Multi-factor authentication should be enabled when available for important accounts.
Integration with other systems
Many businesses use several cloud services at the same time. APIs and other integration mechanisms can allow those services to exchange information.
Integrations can improve workflow efficiency, but they should be secured carefully because each connection can introduce additional access and data-flow requirements.
Consider the total cost
SaaS pricing is often subscription-based, but the advertised subscription is not always the complete business cost.
Organizations should consider user counts, premium features, storage, integrations, implementation, training and future growth when evaluating a service.
How to evaluate a SaaS platform
A practical evaluation can begin with the business problem rather than the software's feature list.
Business Need
Define the problem the organization is trying to solve.
Requirements
Identify essential features, integrations and security requirements.
Testing
Test the service with the people who will actually use it.
Review
Compare cost, usability, security and long-term fit.
Final thoughts
SaaS has become an important part of modern business technology because it can make software easier to access and manage across distributed environments.
The best approach is not to adopt software simply because it is popular. Businesses should start with a clear requirement, review security and data responsibilities, evaluate total cost and confirm that the service fits the organization's real workflow.