What is SaaS and why it should be your company's best ally

This model, which changed the software distribution paradigm, offers solid competitive advantages to companies. Why it is key for the digital transformation.

Luciano Fernández
3 min read

Among the solutions brought by using the cloud in business environments, software as a service (SaaS) is perhaps one of the most relevant. Its success and popularity began taking shape in the year 2000, owing to the path taken by firms such as Netflix, Dropbox, Spotify, Google Apps and Kubernetes, true pioneers of the modern digital era.

What is SaaS?

With SaaS, users can connect to cloud-based applications through the Internet. This model has changed the business paradigm: any employee at an organization can, very simply, gain online, remote access to the whole firm's infrastructure. The days are over when the software was purchased to be installed on every device.

 

A subscription to a good cloud service provider guarantees the availability, security, and correct functioning of the different applications and data within a company. Therefore, it is essential to make a smart choice when it comes to cloud providers, as they will need to offer an end-to-end solution to store and control an entire company's infrastructure in their data center.

Benefits of the SaaS model

Say goodbye to licensing fees. The SaaS model has practically done away with the old system where a company needed to allocate a large amount of its budget to purchasing software licenses, which also entailed additional support and update costs. But this is not the only concrete benefit, as there are other multiple advantages.

 

#1 No more hardware costs: the cloud service provider is responsible for the processing power.

 

#2 No more installation costs: applications are ready to be used online just by subscribing.

 

#3 Pay-as-you-go: the service is hired only for the period requested, with the chance to cancel it when it is no longer needed.

 

#4 Scalable use: services can be incorporated as a project may call for them.

 

#5 Automatic updates: they are usually free of charge and installed by the service provider, which is one concern the company won't need to address.

 

#6 Compatibility: applications can be accessed from anywhere and from any device with an Internet connection.

 

#7 Security: every user is covered with equal security parameters. Smaller companies benefit from having the same levels of security as big companies.

 

#8 Integration: adding a new collaborator to the structure is very simple as there is no need to install software on a particular workstation. All that is needed is an online registration.

What are the risks of SaaS?

The model is proving to have fewer cons with each day that goes by. And these are also lessened by the massive commercial competitiveness it provides to companies. Still, there are three aspects to be considered:

 

#1 Privacy: this is always a conflicting issue as an organization's entire data is now shared with the service provider. Even though maximum privacy is guaranteed, there is always the potential risk that the data stored by the provider could be leaked, receive cyberattacks or suffer from any other incidents.

 

#2 Service interruptions: if the service brought by the provider goes down, the software cannot be accessed and data could be lost. Creating security backups to store on external servers is the most reasonable solution.

 

#3 Internet connection: a fast, stable Internet connection is a must-have for the software to work correctly. Some providers reduce this risk by offering an offline service that enables working without an Internet connection.

 

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