What Is Software As A Service And How Does It Work?

What is Software as a Service and How Does it Work?

Have you used Dropbox or Google Docs? These are some of the common software that we use on a daily basis. We access it through the internet and use it on our devices. This is what makes the two a clear definition of Software as a Service or SaaS.

So, what is a SaaS System?

In a general sense, SaaS is software that is hosted by an organization and made available for consumers over the internet. Instead of installing this software on your own computer, you run it on the cloud. There are however several different types of SaaS. These include, but are not limited to:

* CRM software

This type of SaaS is made only to manage your customer relationships. It will usually allow you to organize prospects, leads, and customers into lists which you can segment, prioritize, and track to see who is interested in your product or service. You will also be able to send emails and texts through the system, manage sales opportunities and track sales funnel metrics.

* Project Management SaaS

Some of the common tools in this kind of software include calendars, task lists, document sharing and project timelines. It is also made to simplify collaboration among different members of your team.

* Accounting software

This kind of software is made for all your accounting needs. The system will allow you to manage invoices, track expenses and monitor financial reports from your business. Moreover, it will also allow you to create financial statements and do taxes.

* Email marketing SaaS

This type of software includes a few added functionalities besides just email marketing. It will usually allow you to manage your contacts list, schedule emails and see the reports of your email campaigns.

* Enterprise Resource Planning (ERP) SaaS

This type of software is made for larger businesses. It will allow you to manage human resources, financials, projects and customer interactions. Additionally, you can use this software to upgrade or enhance your business.

How does SaaS work?

SaaS is accessed through the internet. It is usually free to use, though some SaaS systems charge for an upgrade or premium account. You are given a login ID and password to access the software, which can be on your computer or on any other device with an internet connection.

What are the benefits of using Software as a Service?

1. Economically viable

The first benefit of SaaS is that it is economically feasible. You pay only for the system when you need it and then stop paying when you don’t want to use it anymore. You won’t have to pay for installation or any other additional costs associated with installing the software, such as upgrades and maintenance updates.

2. Fully automated

SaaS is fully automated. Without any human intervention, you can sign up for an account, set your preferences and be on your way. Automation of this kind lets you use the software without any human interaction.

3. 24/7 access to information

With SaaS, you can access to your information any time of the day. This is especially helpful in emergencies when you need up-to-date information about your business, clients, and customers.

4. Easy to use

It is easy to set up a SaaS account from scratch, as well as understand the software, as it has a user-friendly interface.

5. Access from anywhere

Another advantage of SaaS is that you can access it from anywhere. This is beneficial for those who frequently travel and don’t have their laptop with them.

6. Data security

For your data protection, SaaS systems are usually encrypted and password-protected. Moreover, the system is backed up continuously for when you need to retrieve your data.

7. Customization

SaaS comes with a lot of customizability. You can upgrade or downgrade your account as you see fit, without the need to pay extra. This way, you can streamline your workflow and save money.

8. Collaboration

SaaS is good for teamwork. With its advanced collaboration features, you can discuss projects with your team members and delegate tasks easily. This is perfect for businesses that have a large team or are looking to hire freelancers.”

9. Updates

Regular updates are crucial for businesses, which is why SaaS comes with automatic updates. This ensures your system is up-to-date and won’t be affected by any virus or malware.

10. Productivity boost

Since SaaS comes with added functionalities, it can increase productivity within your business. You can get work done faster and efficiently, while saving money in the process.

Downsides of SaaS

1. Hosted offsite

One of the main downsides of using SaaS is that it requires your data to be hosted offsite. If your employees need access to the software, then you will need to give them remote access via VPNs or public network.

2. Less control over everything

Another downside of SaaS is that you have less control. You are not able to customize the setup or change the way it works according to your needs. You also can’t download or install any software updates, as they are provided by the service provider.

3. Initial cost

The initial cost of using a SaaS platform is expensive, especially when you have multiple users and devices to manage. However, once you have bought a license for the system, there are no recurring fees.

4. Data security concerns

Since SaaS is hosted offsite, your data can be compromised if there is no proper security. Hacked data has the potential to reach the internet and become public knowledge.

5. Locked in

The last drawback of SaaS is that you are locked in. You won’t be able to switch your workflow to another system without the risk of losing your data. So, doing research beforehand is necessary to ensure you are making the right choice.

Examples of Popular SaaS Platforms

There are so many SaaS platforms nowadays, but some of the most popular ones are;

* Gmail

* Airbnb

* Dropbox

* GitHub

* Slack

* Trello etc.

They are all characterized by high security, great data storage capacity and high flexibility/customization.

Conclusion

SaaS is perfect for businesses that need a user-friendly interface for their software. It is more efficient, convenient, and cost-effective than on-premise systems that require installation. With the help of SaaS, you can work smarter and achieve your business goals more quickly.