SaaS Explained In Simple Terms

Software as a Service is a new method for delivering software applications through the Internet.

Fun fact: It is not SAAS, saas or sAAs. It is SaaS.

Software as a service (SaaS) applications is also called on-demand software, hosted software, or web-based software.

How do they work?

These applications are run on servers of SaaS service providers. 

Be it performance, security, or availability — everything is managed by service providers.

No more complex hardware or software management. Phew!

These days, we got tools on our PCs or phone.

Years ago, people used tools installed on local servers or probably client-server windows to get access.

Now, the delivery method has changed a lot.

The Internet is being used to get access to those software applications. Clear?

A common misconception about SaaS you need to know

Many people think of SaaS as a subscription service. 

In fact, SaaS is actually Software as a Service.

How is SaaS-delivered?

Often, through a web interface or mobile app.

Now SaaS is using the internet now instead of the local network.

Why SaaS is making waves in the tech industry?

Before, your business had to buy the hardware or worry about servers.

Then buy the software from the software creators.

Wait, it’s not over yet. Haha!

This followed by installation in the server room and set up the terminals.

Besides, people also need access to server rooms to do some accounting or business-related work.

Thus, businesses can’t get enough of SaaS, and here are 4 reasons your business needs SaaS too.

Now(just before SaaS became a thing), ASPs took over.

Investing massive money in software licenses, servers were risky for businesses.

So they started paying other companies to do the hosting work on their behalf.

In return, they charged companies for the subscription.

They took care of heavy upfront investment while businesses paid money as per the usage.

What went wrong with Application Service Providers (ASPs)? 

The challenge with ASPs was the different versions of software and systems across all these different servers.

While some businesses preferred upgrades, others wanted to configure.

Things went messy as there was no efficiency.

Instead of having a company that manages all these different software.

Software companies said "We will host it for you. We will put it up on the internet. 

You can add your team or security. You just have to pay for a monthly subscription."

Let me put it in simple terms with an example.

You got some repair work to do at home and need a ladder.

Will you buy spending a good amount of money?

Or just rent it out for the hour you need?

Obviously, paying as per the time you use sounds smart

This will save extra money spent on the initial investment.

Another example?

Let's say you need to go somewhere but don't have a vehicle.

You just call a cab or an auto.

Now you don't worry about buying it.

Or anything about its maintenance or repair.

Instead, you are just paying for the service (helping you reach your destination).

Also published on Medium's gururajswamy