The Software as a Service (SaaS) is a method of delivering software applications over the internet on a subscription basis. SaaS applications are centrally hosted by the provider and accessed by users via a web browser or mobile app. This eliminates the need for businesses to install and maintain software on individual computers or servers.
Infographic understanding SaaS: a simplified Cloud Service Model for streamlined application use and the benefits
Key Characteristics
Subscription-based: SaaS is delivered on a subscription basis, with users paying a recurring fee to access the software.
Centrally hosted: The software is centrally hosted by the provider, eliminating businesses needing to manage their own IT infrastructure.
Scalability: SaaS applications are easily scalable, allowing businesses to add or remove users as needed.
Accessibility: SaaS applications can be accessed from anywhere with an internet connection on any device.
Cost-effectiveness: SaaS eliminates the upfront costs of purchasing software licenses and reduces ongoing maintenance costs.
Applications and Benefits
Customer Relationship Management (CRM)
Manage customer interactions, sales pipelines, and customer data
Human Resources (HR)
Streamline HR processes with features such as employee onboarding, time tracking, leave management, and performance evaluation
Project Management
Manage and track project tasks, deadlines, and resources
Accounting
Automate accounting tasks such as invoicing, expenses, and financial reporting
SaaS Distribution and Pricing Models
Subscription-based
Pay a recurring fee for software access, typically monthly or annual
Freemium
Offer free basic services with optional paid upgrades for advanced features
Transaction-based
Pay based on the number of transactions or usage volume
Tiered or usage-based
Different pricing tiers based on usage parameters allow businesses to choose the plan that suits their needs and budget
Technical Architecture of SaaS
Multi-Tenant Architecture: A single instance of the software application serves multiple customers, known as tenants. Efficient resource utilization, reduced costs, and improved scalability.
Virtualization: Creating virtual servers, storage, and networking instances enables efficient utilization of hardware resources. Improved resource utilization, scalability, and flexibility.
Customization: The ability to adapt the software to different customer workflows and processes. Enhanced user experience, improved productivity, and better alignment with business needs.
