SaaS products or services: what is it

Features of software as a service

An excellent feature of the model – the client does not buy an application for a computer or smartphone. Instead, he rents software. The client regularly gets access to the clouds, i.e. through the Internet.

This service option is characterized by the following features:

Work through browsers or API.

Payment is reproduced for access to the application.

The supported product is the service provider, not the user.

SaaS users are both individuals and small and medium businesses.

Advantages and disadvantages of SaaS

SaaS Pros

For customers:

No overpayments. According to Computer World, companies using Software As A Service spend 15% less money than with the standard approach to installing and maintaining programs. This is beneficial for small businesses. Instead of paying for licenses and upgrades, enterprises make a fixed subscription to the required functionality. In case of irrelevance of the software, the company stops the payments.

High security. The model is much safer than using classic software. There is less chance you will lose data or be stolen. Provider automatically backs up. Freeform Dynamics conducted a study, the results of which revealed that 75% of companies consider a cloud-based solution safe for critical information.

Does not require installation. Developers offer a cloud solution, access is provided remotely. Updates are installed quickly and transparently.

Quick implementation.

Reduces the amount of work of IT staff. Local hardware maintenance is not required.

Technical support is included in the price.

Multiple people can work in the same application at the same time.

Multiplatform and sync – access on all devices.

Higher level of software maintenance.

Low technical requirements for devices.

The ability to work with people regardless of their geographical location, time zone, device.

For developers:

No problem with pirated software distribution.

Saas platform is a developer’s investment protection. The client is tied to the developer, he can not refuse services and continue to use the software simultaneously. That is predictable periodic income.

Quick update.

Low cost of working with an individual user.

Income from subscriptions in the future will be more than from licenses.

Some products cannot be implemented as classic software. You can work with them only with the help of cloud technologies, for example, the Datanyze service.

Technical and economic efficiency.

Competition in global markets.

Increase in popularity. According to Computer Economics statistics, 60% of companies have implemented at least one SaaS solution in their business, and another 36% are going to invest in software in the future.

Cons of SaaS

You need an uninterrupted connection to the Internet. Some developers smooth the inconvenience and provide offline access to the platform.

Low access speed. The question becomes especially relevant when transferring large volumes of materials.

And again about security. Pay attention to whom you trust the data. If the service has not yet proven itself, do not rush to trust it with important information.

Small functionality is not adapted for deep development for each user, including for innovative solutions. In classical software, the range of functions is much broader, since the basis of competition among classical applications is to help develop the individual characteristics of a business. In cloud services this is hardly possible, since the limited functionality is built on typical needs and does not adapt to the specific needs of each business idea.

In addition, the functionality can not yet be expanded due to the technical features of browsers.

For developers, there are no separate networks for selling software as a service, you need to promote yourself via the Internet.

How SaaS works

The developer provides a single field of work for all customers, but each configuration file is stored separately from each other. In simple words, this is a program that has many users, in contrast to the classic licensed software, where each copy serves a specific client. SaaS solution facilitates the planning of computational loads and reduces the cost of use.

Software As A Service Examples


CRM systems (Customer Relationship Management or Customer Relationship Management) are software for optimizing customer relations. They are easier to implement as a program as a service, since the functionality and interface is not required to be tailored to each specific user. Here are all the benefits of a cloud solution. Among the shortcomings can be identified:

providing information about the database of third-party customers;

few functions for settings;

possible problems with integration with internal software.

An example is the platform. It is the world leader in the SaaS and CRM market. IDC Worldwide Semiannual Software Tracker conducted a study in 2017, the results of which indicate the advantages of this system over monsters such as Oracle and SAP.


Recall that HRM (Human Resources Management, Human Resource Management, HR-management) – a set of actions aimed at the selection of personnel. HRM systems are harder to develop using SaaS than CRM, because more flexible settings are required according to the legislation of different countries. Examples: SuccessFactors HCM, SuccessFactors, and others.

Other SaaS products that everyone has come across include Microsoft Office 365, Google Apps, Amazon services, online games, website hosting services, online organizers such as calendars, to-do lists, project management, etc.

Software As A Service Development Criteria

Increase the speed of Internet access.

Large legal base.

Effective marketing approaches.

Software As A Service Alternatives

SaaS alternatives are a cross between a classic software installation and a cloud solution.

S + S – operates according to a similar scheme, only a special client is used instead of a browser.

IaaS – infrastructure as a service. Provides access to servers, networks, storage, and companies use their tools to work with them – platforms and applications.

Rental applications. From the user’s point of view, there is no difference, but each is provided with a separate copy of the software, unlike Software As A Service, where everyone works in one program. More difficult to administer and configure.

PaaS – platform as a service. Developers use to develop and manage their applications.