What is Software as a Service? SaaS

This is the final part of my series on ‘types of cloud service’, this time focusing on Software as a Service, often abbreviated as SaaS.

Look back through my list of published articles to learn more about the other common types of cloud service, Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). 

Basically, as a high-level summary and as the name suggests, with SaaS, you are effectively using a software application hosted using a cloud service accessed over the public internet, usually via a web browser, mobile app or suite of applications installed on your personal computer. 

You’re likely using one already. Applications like Microsoft 365 and Google G-Suite are considered SaaS services, where the vendor manages the underlying application and the infrastructure it runs on, and you configure and use its features as needed. 

What do Software as a Service (SaaS) services typically have in common? 

• Subscription-based pricing.  Rather than buying a permanent license, SaaS-based services are licensed on a subscription basis, usually at a monthly or annual recurring fee.   

• Accessibility.  SaaS applications are accessed over the Internet, meaning users can typically access them from any device with an internet connection. 
  

• Centralised Management.  SaaS applications are centrally hosted and managed by the service provider. This means that common tasks, such as user management, are performed from a management console. The vendor also applies application updates and software patches. 
  

• Multi-Tenancy  In simple terms, this means multiple customers share a single instance of the Software. This allows the vendor to achieve lower costs. 
  

• Integration.  SaaS applications are usually designed to integrate with other Software and systems. This is often important for businesses that rely on different software products and applications that need to be interconnected. 

When using a SaaS application, there is no need to worry about managing the application's life cycle, its performance, applying any software patches or the underlying infrastructure it runs on, including any operating systems, which the cloud service provider instead maintains.  

SaaS is, therefore, often used in businesses to reduce management overhead and shift the focus to IT, allowing staff to concentrate on other activities that drive value and innovation. 

What should I consider when thinking about SaaS services? 

Here are a few key areas of consideration that I consider when considering a SaaS-based service in the cloud.

• Data Security and Privacy 

This is a very important consideration, as using a SaaS application means you are entrusting your business data to a third party. Be sure to check the provider has strong security measures in place, including encryption and compliance with relevant industry standards. You don’t want to find out the provider has a dodgy reputation and your business data ends up for sale on the black markets. 

• Data Ownership and Control 

You will relinquish some control of your data, so it’s essential to clarify ownership rights and understand how data will be handled, including any data backup, retention, and deletion policies. 

• Reliability and Availability 

It’s all well and good moving to a SaaS product, but you need to know and understand any Service Level Agreements. As SaaS applications are accessed over the internet, downtime or service disruption can severely break your business operations, so check out the vendor’s track record for reliability as well as their planned maintenance windows. Things do break in IT, and that’s the same with a SaaS-based application, so expect the worst and plan for it. 

• Cost Management 

SaaS-based applications often have lower upfront costs, but subscription fees add up over time. You should review the overall cost of ownership, including the fees, integration costs and any hidden charges such as cancellation or exit fees. 

• Customisation 

From my experience, this is something that doesn’t get enough attention.

Many businesses are well used to having Software installed on-premises, such as in a data centre or server room, meaning they can make changes to the application easily. Such modifications may be impossible when using a SaaS service. Also, integration with other applications that are installed on-premises can be difficult when using a cloud-based SaaS application because of network access and controls. Businesses need to review and carefully assess whether the SaaS application meets their needs and requirements. 

Overall, SaaS enables businesses to use applications provided by a vendor over the internet. The key advantage is that you don’t have to concern yourself with the maintenance of the application itself. It is also frequently used to reduce IT management costs, as you hand over management of the application to the cloud providers instead, allowing your teams to focus on other, more important tasks. 

I hope my articles on IaaS, PaaS, and SaaS clarify the core types of cloud services available and some of the key considerations when deciding to use them.

As always, reach out if you need more information or guidance.