What Is SaaS? Understanding Computer software As a Provider

Table of Contents1 What is SaaS? 2 Styles of SaaS3 Advantages and drawbacks of SaaS3.1 Rewards3.2

  • SaaS is a distribution model for software program licensing that lets organizations host their program on the web. 
  • People don’t have to obtain something to their product to access the application.
  • SaaS platforms come in two varieties: verticals and horizontals.
  • Check out Insider’s Tech Reference library for far more stories.

Dependent on what you do and who you discuss to, you have either never heard of SaaS, or you have viewed the phrase thrown close to as however you were being intended to comprehend what that meant devoid of any context. We’re right here to make certain you might be in the know the following time it pops up.  

What is SaaS? 

The gist is this: SaaS (Software program as a Company) is a distribution product for application licensing exactly where the service provider hosts apps on the web (or would make them available by means of a site), so that consumers will not have to down load anything onto their personal computers to obtain the software program. (SaaS falls below the cloud application umbrella.) 

Even if you’re unfamiliar with SaaS, you have most likely employed a service that uses this design. In actuality, it’s starting to be so well-known that one particular study observed 86% of corporations envisioned most of their software program demands to be achieved by SaaS by 2022.

This is what else you should really know about SaaS.

Styles of SaaS

There are two most important styles of Saas.

  • Verical: These concentrate on the demands of a solitary market. For case in point, Clio only addresses legislation companies.
  • Horizontal: These do the job across a number of industries. Quickbooks, for instance, lets buyers do bookkeeping irrespective of their profession.

Whilst equally are employing the exact distribution design, the distinction lies in how they serve their customers (and who these consumers are.)

Advantages and drawbacks of SaaS

As with something, there are execs and negatives to earning the switch to a SaaS system.


  • It elimates the require for hardware maintenance and connected prices.
  • It could translate to financial savings on IT prices (just one review located firms saved an ordinary of 15% in this spot).
  • Information is offered as a result of a centralized system, so it is much easier to accessibility.
  • It’s typically more quickly to employ updates and improvements given that there isn’t hardware associated.
  • It eliminates the needs for application updates on the person side.


  • Prospects no lengthier have the possibility to adhere with an older edition of the program if they like it.
  • Prospective for software program-integration issues when switching to a SaaS model.
  • In the event of a information breach, the corporation (not the cloud seller) is on the hook and may well experience lawful consequences.
  • Shoppers may desire a one-time payment fork out construction, alternatively than the a lot more common regular price choice accessible from many SaaS corporations.
  • Gradual online speeds have an affect on the software’s overall performance. 

Illustrations of SaaS

You’ve most likely now listened to of, if not used, a SaaS system. For reference, below are a few illustrations of preferred SaaS firms.

  • Google Generate: Allows you create paperwork, displays, spreadsheets, and forms that routinely update.
  • Dropbox: Acts as a file-web hosting company so customers can quickly share files and back again up their work.
  • Salesforce: Focuses on ​​customer relationship management.
  • DocuSign: Lets you to very easily trade and indication documents.
  • Slack: Allows workers connect with each individual other via direct messages.