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Software As a Service: History, Benefits and Definition



Everything To Know About Software As A Service

As a Service or popularly known as SaaS, the software is a method of rendering software to numerous users simultaneously. SaaS is entirely based on cloud computing services, which makes the software accessible by users worldwide. Any user or customer can access the software anywhere by the digital devices via SaaS software. This tool ensures that the software is easily accessible to thousands of users via the internet. Moreover, it also eliminates the requirement of installing any additional applications on their digital devices. SaaS includes numerous business apps, file sharing, email, customer retention management, human resources, calendars, and more.

Moreover, the software as a service history states that John McCarthy in 1960 thought that there would be a day in the future when computation will be organized as a public utility. Furthermore, McCarthy also said that the cloud computing concept started as a shared resource of computing power.

What is SaaS?

The rise of the demand for various software usage clearly shows how essential SaaS is for us. However, the definition of SaaS for a clear understanding is: SaaS is a software model that provides various software for smooth and easy access to the customers. In return, the customers have to pay a minimum amount of monthly subscription fee for keeping the access for a specific time.

SaaS is the first of its kind commercial platform of cloud computing along the Infrastructure-as-a-service and platform-as-a-service.

Furthermore, the SaaS model enables the users to rely on the vendor to access the internet, maintain it on their servers, and host it. In case a client buys SaaS software, an automatic assumption is that the vendor ensures to host the app and enable access. At the same time, there are also other options available.  The application service providers are also available to host and maintain apps for their customers and earn a profit.

Understanding Software-as-a-Service (SaaS)

Understanding the concept of SaaS as a whole is a bit challenging. However, no need to worry as we are here to make you understand this concept once and for all. For instance, think of it as a bank that functions to protect its customers’ privacy and security. Moreover, they also deliver high-quality services because of which they are highly reliable. Similar Software as a service also works and shares the same vital characteristics as a bank.

The characteristics of SaaS are as follows:

  • Customized

The SaaS tool enables the users to customize the applications as per their own needs and requirements. However, it does not let the users affect or disrupt the necessary infrastructure.

The SaaS software has this unique feature that lets the users modify the application easily in the exact way they want. Moreover, the Software as a service model is a unique design that allows the brands and companies to utilize the unique features of SaaS. This feature also results in more upgrades of the versions of the software. With minimum client risk and way lesser adoption cost SaaS works efficiently and smoothly.

  • Smooth Access

The Software as a service provides smooth and easy accessibility to its customers worldwide via any digital device. The users can access from a smartphone, laptop, computer, tablet, and more. It makes it smooth and easy for the users to use privileges, analyze data usage, and share the same information with multiple people simultaneously.

  • Controls The Consumer Web

Just as similar to or Yahoo SaaS works, the web interface also works quite the same. The SaaS model enables the users to customize the applications in a short period. The traditional way of waiting for months and weeks seems like a waste of time and is hopelessly old fashioned.

  • Trending Software As A Service

Various entities are designing SaaS integration platforms for creating benefits of software as a service in cloud computing. As per the Saugatuck Technology firm, this is the third wave of software adoption. In this wave, the SaaS moves beyond standalone software functionality and is considered the most used platform.

How Does SaaS Work in Cloud Computing?

For having a clear understanding of how SaaS works in cloud computing, Let’s clear some basic things first. The primary and vital key point of SaaS is that the users can access it by paying a simple monthly subscription. Moreover, the users need to keep on renewing the subscription as a scheme of a monthly plan. Instead of paying once and having a forever license of ownership on the product, the monthly paid-up subscription is available.

The server’s responsibility for maintenance, upgrade, and accessibility is on the vendor in a monthly paid subscription scheme. Whereas, when a user pays for buying an app, the responsibility of server maintenance, performance upgrade is on the user.

In a nutshell, the clients and users subscribe to the services of SaaS for having the third party maintain the IT infrastructure. The SaaS tool helps eliminate the price and duration of deploying an additional piece of software, extend the assurance of yearly cost of ownership for software,  eliminate outsourcing tasks, and more that must be performed internally.

What is SaaS

What Are The Advantages And Disadvantages Of Using Saas?


  • Accessibilities: The benefit of any SaaS-based software is that numerous people worldwide can access it through the internet. No company or brand Lis is required to make the extra effort of installing any additional applications. The SaaS software is accessible via web browsers from any digital device of the user. Digital devices such as smartphones, laptops, computers, and rs tablets can access the required software.
  • Storage: The SaaS software model enables the users to save all their files and documents directly in the cloud. Most of the users tend to experience the issue with saving and storing their data from the software. For storing the data, they require to install or attach another storage source in which they can carefully save all their files. However, in SaaS software, people are free from saving and storage issues. Moreover, the SaaS-based software also enables the users to change their device in between the tasks. They can switch the device easily and log in through web browsers directly into their account. After logging in to another device, they can access their files and all the data.


  • Dependency on Service providers Indeed, it is true that the SaaS software comes with various benefits, but it also has a few issues. The SaaS software is incredibly dependent on the service providers for the upgrade, accessibility, and software maintenance. This can sometimes result in accessibility failure and performance issues.
  • Data security risks The SaaS software can also result in data loss, losing control, data breach, and other issues. Numerous companies might experience significant losses because of the poor security of SaaS software.
  • Inconvenient Software IntegrationAnother issue while dealing with SaaS-based software is that sometimes the users might experience inconvenient software integration. The API’s and data structures in-house might not suitably integrate. This can result in inconvenience for the users.

Well known Practical Uses

The SaaS software based on web browsers that can be accessed via the internet can be used for various purposes. Numerous companies are already using SaaS-based software in their offices. The data of such companies are as follows:

  • Google

The company Google is one of the companies that make use of the SaaS-based software the most. The company has nearly 137 products that are based on internet related services. The services offered are a search engine, digital analytics, online promotion, doc creation, and more.

  • Microsoft

The Microsoft company is a renowned owner of nearly more than 100 kinds of cloud-based products. A variety of software runs these cloud-based products.   The company is considered as one of the most famous companies for delivering its software-based services.

  • Hubspot

The HubSpot company is known for its inbound marketing software with primary tools based on CRM, media promotion, web analysis, and more. It also offers tools for SEO, data management, and many other services.

  • Salesforce

The Salesforce company nearly has the ownership of 50 + cloud computing-based products. These Cloud computing-based products ensure to make it easier for the company employees to make better connections with customers around the world. The Salesforce market price is $117.8 billion.

Final Thought

The Software as a service tool offers numerous benefits and features for clients all over the world. It works to gain something for suppliers and customers. Some entities design their cloud management services and utilize orchestration among digital devices and platforms to manage their data for major small businesses. SaaS provides unequaled features that help businesses grow, develop, and deliver more profit to both employees and clients.

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