software as a service (SaaS)

What is Software as a Service (SaaS)?

SaaS, or Software as a Service, is a model for distributing cloud-based software. In this model, cloud service providers offer licenses for application software on a subscription or pay-per-use basis, enabling customers to access it via the Internet. SaaS allows customers to swiftly deploy applications, often on-demand, hastening their time to value.

Customers effectively lease the software on a pay-as-you-go basis, reducing the initial cost of software deployment. Costs for accessing SaaS may vary depending on factors such as the number of users covered by a subscription, specific application features, usage levels, and other variables.

Maintenance of the software is handled transparently for customers, as the cloud provider assumes responsibility for maintaining and updating the application, as well as managing the necessary IT infrastructure to support it.

SaaS in Networking

In networking, SaaS (Software as a Service) entails utilizing the cloud-based software delivery model to distribute networking software applications. The majority of SaaS implementations in networking thus far have revolved around cloud-hosted applications that business customers utilize for planning, monitoring, and managing their networking environments.

Key SaaS Features

SaaS offerings encompass the following services and functionalities, all managed by the cloud provider:

• 1. Setting up, accessing, and maintaining applications.

• 2. Implementing technology updates, including version upgrades and bug fixes.

• 3. Providing IT support for the SaaS application.

• 4. Managing back-end infrastructure and programming.

• 5. Handling data storage and management.

• 6. Ensuring infrastructure and facility security.

Main Benefits of SaaS

There are five primary benefits to using SaaS:

• 1. Accelerated time to value—The cloud provider has pre-installed and configured the software application within its infrastructure. Upon a new customer sign-up, the cloud provider can swiftly provision a virtual server instance, making the application readily available for immediate use.

• 2. Lower costs— As the SaaS application operates within a shared or multi-tenant environment, maintenance and support costs are distributed across all users, resulting in reduced expenses for each individual user.

• 3. Flexibility and scalability—SaaS solutions typically operate within hyperscale cloud environments managed by providers with extensive global infrastructure. These environments offer nearly limitless scalability, allowing resources to be dynamically adjusted to meet changing requirements. Pay-as-you-go pricing models automatically adapt to these changes.

• 4. Automatic tech refresh/upgrades—When the SaaS provider performs upgrades to the application, the new features and enhancements are instantly accessible to all customers.

• 5. Simplicity—SaaS offerings are user-friendly, facilitating easy testing and deployment for proof of concept. Additionally, customers can support multiple instances of the SaaS application to test and implement different versions, ensuring a smooth migration process.

The Primary Problems SaaS Solves

A key driver of SaaS is that customers can save resources associated with installing, managing, and storing application software and data on their own internal networks. IT departments reduce the costs, time, and complexity involved in purchasing, evaluating, implementing, and maintaining software applications internally.

Specifically, SaaS alleviates the following issues:

• 1. Initial capital outlay and high TCO—Compared to traditional on-premises deployment models, SaaS can lower the cost of IT consumption in three ways:

• There are no initial capital expenditures necessary for deploying the application, such as purchasing physical servers for hosting.

• Maintenance and service tasks are managed by the SaaS provider; customers are relieved from the need to allocate staff time and expertise for deploying and overseeing the application. The cost of maintenance from the cloud provider is also distributed among all users of the application in a multitenant environment.

• Power, cooling, and real estate or facilities requirements for hosting the application are covered by the cloud provider.

• 2. Deployment delays are minimized—Application instances can be rapidly initiated, eliminating the need for businesses to invest time in purchasing, configuring, testing, and deploying new software. This enhances business agility, allowing customers to swiftly access application software across their organizations and to adjust the number of instances as needed. SaaS applications are engineered to streamline computing processes, thereby enhancing end-user experiences.

• 3. Accessibility and support hurdles are mitigated— With software hosted online, numerous users can access it simultaneously from any location and at any time, facilitating the support of increasingly dispersed workforces. SaaS providers have the capability to strategically distribute instances of the software geographically, bringing them closer to distributed users to minimize latency and enhance application response times.

How Does SaaS Work?

SaaS uses an on-demand software delivery model in which users access applications over the Internet or other network connection. SaaS providers handle the installation, configuration, and ongoing maintenance of software on internal servers. They also host application data and provide IT infrastructure and services to support SaaS applications and data for a predictable recurring fee.

Customers benefit from reduced deployment, management, and operational costs, while SaaS providers benefit from consistent recurring revenue. Customers also get near-instant access to new software releases and features.

Service Options and Customizations

If necessary, cloud providers have the option to integrate supplementary technology from a third-party vendor to enhance aspects of the SaaS application. One SaaS alternative, known as "out-of-the-box," essentially entails a hybrid cloud/on-premises setup for application software. For instance, users can install standard software on their own IT infrastructure while delegating the hosting of the application's data, management interfaces, and potentially IT service requests related to the software to the cloud provider.

SaaS vendors can offer open, configurable, and customizable solutions that are often compatible with future technologies. However, some customizations may not be compatible with future updates or interoperable with other systems, so it's advisable to inquire about this aspect with the provider in advance.