How does SaaS (Software as a Service) work?

SaaS (Software as a Service) reduces users upfront costs by eliminating the need to constantly purchase software or invest in robust on-premise IT infrastructure – as with traditional software. However, SaaS customers must invest in high-speed network equipment, as the performance of the service is determined by the speed of the Internet connection.

Examples of Software as a Service include application service providers (ASP) such as Google Docs and Microsoft Office 365, and business services that provide HR software, e-commerce systems, customer relationship management tools, and integrated development environments (IDEs).

A software vendor generally selects one or both of the two typical deployment models:

  • In their own data center
  • through a public cloud service provider (such as AWS, Azure or IBM Cloud) that manages the cloud environment where    
  • the SaaS solution. is hosted.

Software as a Service applications use a multi-tenant architecture to segregate customer data. Software updates, bug fixes, and other general application maintenance are managed by the Software as a Service provider while users interact with the software through a web browser.

The nature of Software as a Service makes it easy for providers to introduce new features to customers. Most Software as a Service applications are pre-configured plug and play products where the SaaS provider manages everything behind the application, including:

  • hardware components such as network, storage and data center servers
  • Platform features such as virtualizations, operating systems and the middleware
  • The software requirements, such as the runtimes, data, and the applications in themselves

Source : jogjahost

The SaaS model

Software as a Service applications rely heavily on subscription models for software licensing. Unlike a perpetual license, this software delivery model ties each account to a subscription that provides access to the SaaS for a specific period of time – usually annually or monthly.

This subscription fee usually provides access to product documentation and ongoing support governed by a service level agreement (SLA), but some SaaS providers charge additional support services for making custom code changes at the source code level.

Types of Software as a Service applications

Software as a Service many purposes, but Software as a Service applications can be divided into several different subcategories.

  • CRM Software
  • Project Management Software
  • E-Business Applications
  • ERP Software
  • Billing Software
  • SaaS-Based Collaboration Tools
  • Marketing Software
  • HR Management
  • Vertical SaaS Applications

Read More What Is SaaS

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