Saas is an ever-growing technology that is gaining popularity for a growing number of businesses. Saas solutions are offering more viable software options for a wide range of companies globally.
To put things in perspective, 51% of organizations today use Saas applications while 38% of companies work solely on SaaS. This figure is expected to rise to 73%, reaching a SaaS market total of $76 billion.
So what is SaaS, and how does it differ from the traditional software model? What are the pros and cons?
Below is a guide of SaaS discussing the benefits and drawbacks of the service being offered.
What is Saas?
SaaS stands for Software as a Service; it is a cloud computing software distributed online to users usually via a subscription.
While traditionally users would download software to run on their PC, Saas is hosted by a third-party provider and is available to whoever has access to the internet.
Examples of SaaS provided today (which you’ve probably heard off) are Google Apps, Dropbox and Hubspot.
SaaS, Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) are the three main categories of cloud computing.
IaaS and PasS is the Infrastructure of which SaaS applications are built.
Advantages of SaaS
Accessibility
SaaS can run on any OS (Operating system) regardless if its a Mac OS, Windows OS or Blackberry Tablet OS.
It is highly accessible as a user only needs an internet browser to begin their business operations.
SaaS also runs its servers in the cloud, meaning customers are not required to install specialized software and hardware to run. With no special software or hardware installed businesses don’t need to hire their own IT support. Saas have their own IT support specialists to help SaaS users.
Updates
SaaS providers update software and hardware saving time and workload for the consumer.
As their software is housed centrally on the server, new functions and updates are implemented efficiently and frequently. Traditional software, in comparison, would need to be upgraded independently.
Since the vendor upgrades software and has complete control, consumers have the benefit of using the newest version of the service available.
Cost Reduction and Quick Commissioning
One of the benefits of using SaaS for a business is the amount of money that potentially could be saved. Since it is a subscription-based service, there will be no initial licensing fees.
Additional expenses such as buying software to install and an in house IT infrastructure wouldn’t be necessary as it is already provided by a third-party. There would also be a reduction in maintenance costs for software and hardware.
The cost of this service would be offered via a subscription.
Commissioning of service is also faster as users can quickly start operations with just a web browser on their OS. Since the SaaS application is already installed and configured in the cloud and not on individual machines, its deployment is immediate.
Scalability
As a business grows, so do the number of users accessing the service. With SaaS, it is not necessary to buy more service space or additional software licenses to accommodate these new users. SaaS offers flexibility for businesses where they can change their current business plan or subscription.”
Disadvantages of SaaS
Data Security Risks
Businesses need to implement some user access review best practices to ensure that the privacy of sensitive information is absolute. As the provider is the one storing the company’s data, the security risks are as follows:
- Unauthorized access/disclosure or Loss of Data
- The failure to update online security, enabling access to malware and hackers
- Poor security practices resulting in unsecured data
Data Identity and access management need to be recognized and discussed with the SaaS provider, regardless of what assurances exist in the contract.
Termination of service
Businesses using SaaS can potentially lose data and files if their provider has to terminate their service. Providers ending service can be for several reasons such as bankruptcy, lawsuits that could compromise operations and other legal issues.
Fortunately, businesses have the opportunity to back up these files on other servers and data carriers.
Performance Issues
Software on local machines may run at faster speeds compared to a SaaS being hosted on a remote data centre.
It is paramount, therefore for a business to have a reliable internet connection with optimal speed. Monitoring the performance of SaaS applications using software tools would also be advised as performance standards should remain high.
Limited applications
While the number of businesses who use SaaS grows daily, there are still software applications that don’t offer a hosted platform. Without a hosted platform, company applications will have to be hosted on-site, primarily if it relies on multiple software solutions.
