What is SaaS Industry?
SaaS Industry – a software distribution model- is an acronym for software as a service business. It aims to deliver on-demand computing services to customers through applications over the internet. Cloud computing has three main categories, including SaaS, infrastructure as a service (IaaS), and platform as a service (PaaS).
How does SaaS work?
SaaS provides improved accessibility, scalability, and reliability while minimizes overhead and maintenance costs. It also permits easy and quick integration with other platforms without purchasing costly hardware and infrastructure.
Organizations integrate SaaS applications with other Software through APIs (Application Programming Interfaces. It means that a company can write its software tools and use the SaaS provider’s APIs to integrate them with the SaaS offering.
Many business owners, IT personnel, and C-Level executive (CEOs, CFOs) use SaaS applications. Many SaaS applications provide necessary business facilities, including human resource management (HRM), customer relationship management (CRM), financial management, sales management, and many others. Among the leading SaaS providers include Microsoft, Oracle, and SAP.
Why should companies use SaaS applications?
SaaS facilitates by removing the need for organizations to install and run applications on their computers. This way, it eliminates the expenditure on hardware acquisition, provisioning, and maintenance, software licensing installation, and support.
Customers subscribe to a SaaS offering rather than purchasing software to install or installing additional hardware to support it. So the customers pay for the monthly service basis. It also allows businesses to carry out more predictable budgeting with SaaS offerings at any time to stop those recurring costs. Cloud services like SaaS provide users with higher vertical flexibility. It allows them the opportunity to access more, or fewer, services or features on-demand.
Moreover, a business depends on the SaaS provider to automatically perform updates instead of purchasing a new software. It takes off the burden from the IT staff of the company. Lastly, customers can access SaaS applications from any Internet-enabled device and location.