Software as a service
Software as a service (SaaS) allows users to connect to and use cloud-based apps over the internet. Common examples are email, calendaring, and office tools like Microsoft 365. SaaS provides a complete software solution that you purchase on a pay-as-you-go basis from a cloud service provider. You can rent the use of an application for your organization. Your users connect to the service over the internet, usually with a web browser.
All of the underlying infrastructure, middleware, app software, and app data are located in the service provider’s data center. The service provider manages the hardware and software, and with the appropriate service agreement, ensures the availability and the security of the app and your data as well. SaaS allows your organization to get quickly up and running with an app at minimal upfront cost.
If you’ve used a web-based email service such as Outlook, Hotmail, or Yahoo! Mail, then you’ve already used a form of SaaS. With these services, you log into your account over the internet, often from a web browser. The email software is located on the service provider’s network, and your messages are stored there too. You can access your email and stored messages from a web browser on any computer or internet-connected device.
Common scenarios
Let's imagine your healthcare company requires a customer relationship management (CRM) solution for its sales team. The team is global. You can use a SaaS CRM provider to quickly implement a solution for your organization's sales team.
For organizational use, you can rent productivity apps, such as email, collaboration, and calendaring, and sophisticated business applications such as CRM, enterprise resource planning (ERP), and document management. You pay for the use of these apps by subscription or according to the level of use.
Advantages
Gain access to sophisticated applications: To provide SaaS apps to users, you don’t need to purchase, install, update, or maintain any hardware, middleware, or software. SaaS makes even sophisticated enterprise applications, such as ERP and CRM, affordable for organizations that lack the resources to buy, deploy, and manage the required infrastructure and software themselves. You pay only for what you use. You also save money, because the SaaS service automatically scales up and down according to the level of usage.
Use free client software: Users can run most SaaS apps directly from their web browser without needing to download and install any software. You don't need to purchase or deploy client software for your users.
Access app data from anywhere: With data stored in the cloud, users can access their information from any internet-connected computer or mobile device. Since app data is stored in the cloud, no data is lost if a user’s computer or device fails.