SaaS, or software-as-a-service, is application software hosted on the cloud and used over an internet connection via a web browser, mobile app or thin client. The SaaS provider is responsible for operating, managing and maintaining the software and the infrastructure on which it runs. The customer simply creates an account, pays a fee, and gets to work.
SaaS applications are sometimes called on-demand software, or hosted software. Whatever the name, SaaS applications run on a SaaS provider’s infrastructure. The provider manages access to the application, including security, availability, and performance.
SaaS Characteristics
A good way to understand the SaaS model is by thinking of a bank, which protects the privacy of each customer while providing service that is reliable and secure—on a massive scale. A bank’s customers all use the same financial systems and technology without worrying about anyone accessing their personal information without authorisation.
Multitenant Architecture
A multitenant architecture, in which all users and applications share a single, common infrastructure and code base that is centrally maintained. Because SaaS vendor clients are all on the same infrastructure and code base, vendors can innovate more quickly and save the valuable development time previously spent on maintaining numerous versions of outdated code.
Easy Customisation
The ability for each user to easily customise applications to fit their business processes without affecting the common infrastructure. Because of the way SaaS is architected, these customisations are unique to each company or user and are always preserved through upgrades. That means SaaS providers can make upgrades more often, with less customer risk and much lower adoption cost.
Better Access
Improved access to data from any networked device while making it easier to manage privileges, monitor data use, and ensure everyone sees the same information at the same time.
SaaS Harnesses the Consumer Web
Anyone familiar wit Office 365 will be familiar with the Web interface of typical SaaS applications. With the SaaS model, you can customise with point-and-click ease, making the weeks or months it takes to update traditional business software seem hopelessly old fashioned.
SaaS takes advantage of cloud computing infrastructure and economies of scale to provide customers a more streamlined approach to adopting, using and paying for software.