Software as a service (SaaS) allows users to connect to and use cloud-based apps over the Internet. Common examples are email, calendaring, and office tools (such as Microsoft Office 365).
SaaS provides a complete software solution that you purchase on a pay-as-you-go basis from a cloud service provider. You rent the use of an app for your organization, and your users connect to it over the Internet, usually with a web browser. All of the underlying infrastructure, middleware, app software, and app data are located in the service provider’s data center. The service provider manages the hardware and software, and with the appropriate service agreement, will ensure the availability and the security of the app and your data as well. SaaS allows your organization to get quickly up and running with an app at minimal upfront cost.
| Hosted applications/apps | Development tools, database management, business analytics | Operating systems | Servers and storage | Networking firewalls/security | Data center physical plant/building |
Common SaaS scenarios
If you’ve used a web-based email service such as Outlook, Hotmail, or Yahoo! Mail, then you’ve already used a form of SaaS. With these services, you log into your account over the Internet, often from a web browser. The email software is located on the service provider’s network, and your messages are stored there as well. You can access your email and stored messages from a web browser on any computer or Internet-connected device.
The previous examples are free services for personal use. For organizational use, you can rent productivity apps, such as email, collaboration, and calendaring; and sophisticated business applications such as customer relationship management (CRM), enterprise resource planning (ERP), and document management. You pay for the use of these apps by subscription or according to the level of use.
Advantages of SaaS
Gain access to sophisticated applications. To provide SaaS apps to users, you don’t need to purchase, install, update, or maintain any hardware, middleware, or software. SaaS makes even sophisticated enterprise applications, such as ERP and CRM, affordable for organizations that lack the resources to buy, deploy, and manage the required infrastructure and software themselves.
Pay only for what you use. You also save money because the SaaS service automatically scales up and down according to the level of usage.
Use free client software. Users can run most SaaS apps directly from their web browser without needing to download and install any software, although some apps require plugins. This means that you don’t need to purchase and install special software for your users.
Mobilize your workforce easily. SaaS makes it easy to “mobilize” your workforce because users can access SaaS apps and data from any Internet-connected computer or mobile device. You don’t need to worry about developing apps to run on different types of computers and devices because the service provider has already done so. In addition, you don’t need to bring special expertise onboard to manage the security issues inherent in mobile computing. A carefully chosen service provider will ensure the security of your data, regardless of the type of device consuming it.
Access app data from anywhere. With data stored in the cloud, users can access their information from any Internet-connected computer or mobile device. And when app data is stored in the cloud, no data is lost if a user’s computer or device fails.
18 September 2020 2 min read IBM Cloud Team, IBM Cloud SaaS provides an intriguing alternative to standard software
installation in the business environment (traditional model), where you have to build the server, install the application, and configure it. Instead, the applications reside on a remote cloud network accessed through the web or an API, and it works like a rental. You and your organization have the authorization to use it for a period of time and pay for the software that you are using. The following are five of the top advantages of using SaaS: Software as a service (SaaS) differs from the traditional model because the software (application) is already installed and configured. You can simply provision the server for an instance in cloud, and in a couple hours, you'll have the application ready for use. This reduces the time spent on installation and configuration and can reduce the issues that get in the way of the software deployment. SaaS can provide beneficial cost savings since it usually
resides in a shared or multi-tenant environment, where the hardware and software license costs are low compared with the traditional model. Another advantage is that you can rapidly scale your customer base since SaaS allows small and medium businesses to use a software that otherwise they would not use due to the high cost of licensing. Software as a service (SaaS) is a cloud computing offering that provides users with access to a vendor’s cloud-based software. What are the main benefits of using SaaS?
1. Reduced time to benefit
2. Lower costs
Maintenance costs are reduced as well, since the SaaS provider owns the environment and it is split among all customers that use that solution.
3. Scalability and integration
Usually, SaaS solutions reside in cloud environments that are scalable and have integrations with other SaaS offerings. Compared with the traditional model, you don't have to buy another server or software. You only need to enable a new SaaS offering and, in terms of server capacity planning, the SaaS provider will own that. Additionally, you'll have the flexibility to be able to scale your SaaS use up and down based on specific needs.
4. New releases (upgrades)
With SaaS, the provider upgrades the solution and it becomes available for their customers. The costs and effort associated with upgrades and new releases are lower than the traditional model that usually forces you to buy an upgrade package and install it (or pay for specialized services to get the environment upgraded).
5. Easy to use and perform proof-of-concepts
SaaS offerings are easy to use since they already come with baked-in best practices and samples. Users can do proof-of-concepts and test the software functionality or a new release feature in advance. Also, you can have more than one instance with different versions and do a smooth migration. Even for large environments, you can use SaaS offerings to test the software before buying.
Learn more
IBM Cloud has embraced the advantages of software as a service (SaaS) and has built a portfolio of over 100 SaaS applications that solve critical business needs for our clients. Explore IBM's SaaS applications for business and IT.
To further explore the differences between IaaS, PaaS, and SaaS, see "IaaS, PaaS, and SaaS – IBM Cloud service models."
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