An explanation of software-as-a-service (SaaS)
In this video, Informa TechTarget editor Sabrina Polin explains what software as a software (SaaS) is, how it works and why an enterprise may or may not want to use it.
Why own when you can rent? We're not talking about homes.
Software-as-a-service, or SaaS, is one of three main categories of cloud computing, alongside infrastructure-as-a-service and platform-as-a-service. And it's the most common among consumer-level products. So this explanation might be simpler: Watching a movie on Netflix is SaaS in action, as opposed to owning it on DVD.
Simply put, the "as-a-service" translates to "over the internet." So, SaaS is access to a third-party application over the internet instead of installing it on a physical, local device. Here, we'll go over the basics of SaaS and how it's used in business environments.
Your email client is likely SaaS, whether that's Outlook, Gmail, Hotmail, Yahoo! or AOL. Google Docs and Microsoft Office 365 are SaaS. Zoom, Teams, Slack, Dropbox -- they're all SaaS. It honestly might be harder for the average person to think of something that's NOT SaaS.
And while SaaS is prevalent in the mainstream, it's also widespread at the enterprise level. There's SaaS for sales management, customer relationship management, financial management, human resource management, billing, collaboration -- really anything.
Let's dig a little deeper into how SaaS works. A SaaS vendor -- like Salesforce, Oracle, SAP, Intuit or Microsoft -- owns servers, databases, networks and computing resources that they essentially "rent out" to clients. So, a client's application and all its data lives in the vendor's data center.
SaaS can either be multi-tenant, where one instance of a vendor's application serves multiple clients; or single-tenant, where one instance serves only one client. Think of it like living in an apartment building, where tenants share resources like electricity, the gym and the lobby, versus renting a single-family home where nothing is shared.
SaaS eliminates the expense of hardware, maintenance, licensing and installation, so it can be cost-effective. And SaaS offerings generally operate on a pay-as-you-go model, offering even more flexibility.
SaaS also offers the following:
- High scalability for any range of projects and needs.
- Automatic updates, which not only reduces the burden on IT, but also gives users instant feature updates.
- Accessibility and persistence, since users can access SaaS content from any internet-connected device and location.
But a notable disadvantage is the fact that organizations must rely on outside vendors for the software and have little control. For instance, providers might experience service disruptions that impact the end user or impose unwanted service changes.
SaaS also introduces cybersecurity challenges that aren't necessarily a concern with traditional software. If a provider falls victim to a cyberattack or data breach, all client and user info will be impacted as well. This is important to keep in mind, especially as AI advancements are increasing SaaS adoption in every industry.
What was the first SaaS your company embraced? Salesforce? Office 365? Let us know in the comments below and remember to like and subscribe.
Sabrina Polin is a managing editor of video content for the Learning Content team. She plans and develops video content for TechTarget's editorial YouTube channel, Eye on Tech. Previously, Sabrina was a reporter for the Products Content team.