Imagine you need to edit a photo or digitally track your expenses. Traditionally, you will buy and install an app on your computer. It takes an upfront cost, and sometimes the setup is a hassle. Software-as-a-Service (SaaS) gives you a neat alternative. It’s a way of delivering software where you access it over the Internet without downloading it on your device. [1]
Instead of downloading and installing the app on your machine, you access and use the software within your web browser. Much like visiting a website. And instead of an upfront cost, you pay a small subscription fee and start using the app — no installation required.
Think of a streaming service like Spotify. To listen to music on Spotify, you don’t need to buy or download albums or tracks. Spotify’s entire library, featuring millions of songs, is at your fingertips for a small subscription fee. You can listen on your phone, computer, tablet, or smartwatch.
Software-as-a-Service has revolutionized the tech industry [2]. Everyday apps like Google Workspace, Office 365, Dropbox, Spotify, Netflix, Duolingo, and Canva are all built on the SaaS model. Businesses of all sizes rely on SaaS tools for customer relationship management, email, accounting, HR, e-commerce, and marketing.
Be sure to check out our in-depth guide to SaaS
In this post, we’ll deep-dive into how SaaS became integral to our digital lives. We’ll study its history. We’ll learn how almost every industry has its own SaaS solutions. And how SaaS has leveled the playing field for small businesses and startups. SaaS is still a booming industry. And it’s becoming more critical every day.
But What is SaaS?
Applications are delivered over the Internet as a service. That is the Software-as-a-service model in a nutshell. Here’s a quick breakdown of how it works. The developers run the app on their servers. And you access the app through their servers with a subscription. Basically, it’s renting software and using it over the Internet.
How SaaS Compares to Traditional Software Delivery
SaaS is taking over the traditional ways of delivering software. It wasn’t long ago when you had to purchase a CD, sit through long-winded installation setups, and then deal with constant updates to run any sophisticated app. But the SaaS model sidesteps all of that.
You don’t need to pay high upfront charges, just a subscription fee.
The service provider handles all the technicalities. So you don’t have to worry about updates, maintenance, bug fixes, and security. You get the latest version whenever you open it. SaaS has made compatibility issues and manual updates a thing of the past.
Feature | Traditional Software Delivery | Software as a Service (SaaS) |
Installation | Installed locally, on each device | No installation |
Updates | Users manually manage updates | Automatic and behind-the-scenes |
Cost | High upfront cost | Cheaper subscription fees |
Accessibility | Available locally on installed devices | Accessible on any device with internet |
Security | Users have to manually install security patches and maintain backups locally | The service provider covers security |
Scalability | Complicate scaling, with additional hardware | Easy to scale up or down |
Integration | Requires technical expertise | Usually designed to work with other services |
SaaS is Accessible and Flexible
SaaS is omnichannel. You can access the app from any device with a web browser and an internet connection [3]. All your files and preferences are perfectly synced everywhere. You can leave your desktop and resume work on your tablet without missing a beat. It’s flexible. It’s convenient. And it’s a lifesaver for people who work remotely or on the go.
The Evolution of SaaS
The idea of SaaS has been around since the time-sharing computers of the 1960s. Back then, computers were really expensive. And only one person could use them at a time. Time-sharing let people share a computer at the same time. [4]
But true SaaS wouldn’t come into its own until the internet age. Cloud computing and fast internet speeds made SaaS feasible over the next couple of decades. The browsers evolved too. They became powerful enough to run robust apps. With cheap cloud hosting and standardized web technologies, SaaS began to redefine our digital experience.
SaaS Essentials
At its core, SaaS is all about simplifying our interaction with technology. And just four essentials make that possible.
Access and Scalability
SaaS is available on demand, anywhere, at any time. All you need is an internet connection. It has changed how we work. It has transformed entertainment and productivity. And how businesses operate. It makes our digital experiences far more flexible and convenient.
SaaS products are perfectly scalable too. You can tailor them exactly to your needs and size with just a few clicks. From scrappy startups to towering giants, SaaS effortlessly scales for all enterprises.
A Subscription For Every Budget
The subscription-based pricing of the SaaS model saves you the hefty upfront costs of traditional software delivery. The price is spread over time, making it cost-effective.
More often than not, SaaS providers offer different tiers for every budget. Each tier bundles a set of features — the higher tiers have more features and better support. You pick the right fit for you and only pay for the features you need.
One product, multiple users
SaaS solutions typically work on what’s called a “multi-tenancy architecture”. [5] Just like time-sharing computers of the 60s, people share modern SaaS apps. Every tenant (customer or organization) accesses a single instance of the software.
The approach lets the developers better use their limited resources while cutting costs. It allows them to push updates and improvements across the board. And they keep every tenant’s data isolated to make it secure. SaaS providers have to comply with strict security standards and measures.
It’s always up to date
In traditional software delivery, the end user has to acquire and install updates. They have to take time out for it. The updates interrupt their workflow. So it’s no surprise that people are reluctant to get new updates and security patches. Often, the updates are overlooked. And it creates real security risks.
But with SaaS, you never have to deal with updates or security patches. The provider handles regular maintenance and pushes new updates, all behind the scenes. The end user always gets the latest features and security patches. No input is needed.
The SaaS approach focuses on the user first and foremost. And that shift in focus is transforming how we experience technology.
SaaS Across Industries
Do you ever think about how businesses track millions of customers, manage their projects, or handle their finances? It’s SaaS. SaaS has become the lifeblood of modern organizations.
Customer Relationship Management
Customer relationship management or CRM platforms were the first SaaS solutions to go mainstream. Before SaaS CRM platforms, businesses had to track customers manually. Their contact details or purchase history would be kept in paper files or spreadsheets.
But CRM programs have changed everything now. They present a central repository where customer information lives in real-time. And they can automate tasks like sales, lead seeking, marketing, and customer service. Think of it as assigning a digital assistant to every single customer. [6]
Project Management
Collaboration and project management tools have changed how work is done. With apps like Asana, AirTable, Slack, and Google Workspace people can work remotely. They create a virtual office with task tracking, meetings, and transparent productivity metrics. Teams can work seamlessly in real-time at anytime, anywhere.
Automated Marketing
SaaS-based marketing platforms like HubSpot come with a range of robust features. [7] With those features, businesses can run fully or partially automated marketing campaigns and track their performance.
The tools can manage email and social media campaigns to generate leads. They even handle pay-per-click advertising and search engine optimization. With built-in analytics, businesses can get insights to maximize ROI.
Human Resources
SaaS solutions also streamline HR workflows. From recruitment to project management, apps like Workday and BambooHR cover everything. It’s a miniature HR department that lives in the cloud.
Healthcare
SaaS solutions for clinics and hospitals can manage patient records, schedule appointments, and order medications. Research institutes can use them for clinical trials and patient analytics. They can even handle claims and payments. They give healthcare organizations a centralized data system and help save costs in IT maintenance.
How SaaS Serves Businesses
SaaS solutions are typically designed for a specific industry and meant for tasks specific to that industry. But almost every business reaps the same benefits from incorporating SaaS platforms into their operations.
Affordability
For smaller and mid-sized businesses, IT maintenance and infrastructure are money pits. It takes a lot of investment to build and run a data center. And to keep it secure and compliant with standards is an ongoing challenge.
That’s where SaaS solutions step in. They cut the big upfront costs. Monthly or yearly subscriptions are much easier on the wallet. And the provider handles all the IT infrastructure and maintenance. Overall, SaaS is more cost-effective. [8]
Flexibility
SaaS solutions make business solutions as flexible as they can be. You can operate your business from a coffee shop or a beach. As long your device has an internet connection, your business is in your pocket.
Better Productivity and Collaboration
SaaS solutions provide a shared space where teams can collaborate and interact in real-time, regardless of where the employees are. Scheduling meetings, tracking tasks, sharing files, and automated workflows make collaboration a breeze. And SaaS analytics can help improve overall productivity.
Businesses can make quick, data-driven decisions. And it all creates an interconnected work environment that isn’t bogged down by limited access and miscommunication.
The Future of SaaS
The SaaS revolution is far from over. New technologies are emerging every day. And those cutting-edge SaaS technologies are about to reshape our digital experience.
The first on the list is AI and machine learning. Traditionally, our interface with computers is simple. We give them input. They give us an output. But with AI integration, SaaS platforms can change computing.
Imagine a SaaS program that learns from user behavior and anticipates user needs. Say, an AI assistant can remind you to complete or automate a task that you perform daily without any input from you. [9]
It’ll create a new wave of SaaS apps tailored to a user’s needs. Instead of users adapting to platforms, it’ll be the other way around. The solutions will become flexible and intuitive.
Merging SaaS solutions with the IoT creates virtually endless possibilities. You can imagine a smart fridge that automatically orders groceries for you. Or smart wearables that track your health metrics and, with your permission, share them with your health provider. The pool of data from these things is huge. And it’s only a matter of time before someone capitalizes on them.
Conclusion
We explored the wonderful world of SaaS. We traced its history. That history led us to the present domination of SaaS. It’s a new paradigm that’s transforming how we interact with our technology. And we ended our exploration we speculations about its cutting-edge future.
SaaS is more than just a technological revolution. It has forever reshaped how businesses operate. And it’s changing how work gets done. It’s helping us be more productive, flexible, and empowered.
When we look to the future, we find that the SaaS revolution has only just begun. AI aims to give SaaS platforms intuition and anticipation, fundamentally changing how humans interface with tech. It’ll make everyday apps and services amazingly personalized and customizable.
References
[1] (n.d.). / / – Wiktionary. Retrieved July 4, 2023, from https://www.forbes.com/sites/forbestechcouncil/2020/11/13/how-the-convergence-of-technology-is-fueling-saas-evolution/?sh=e34d9ed42d9b
[2] (n.d.). / / – Wiktionary. Retrieved July 4, 2023, from https://www.forbes.com/sites/theyec/2023/03/23/the-benefits-of-artificial-intelligence-and-machine-learning-in-saas-businesses/?sh=498e41895a85
[3] Bogna, J. (2022, December 16). What Is A SaaS CRM, And Does Your Business Need One? Monday.com. Retrieved July 4, 2023, from https://monday.com/blog/crm-and-sales/crm-for-saas/
[4] The Early Years of Academic Computing. (n.d.). The Early Years of Academic Computing. Retrieved July 4, 2023, from https://www.cs.cornell.edu/wya/AcademicComputing/text/earlytimesharing.html
[5] Marketing Software for Businesses of Every Size. (n.d.). HubSpot. Retrieved July 4, 2023, from https://www.hubspot.com/products/marketing
[6] SaaS – software-as-a-service. (n.d.). IBM. Retrieved July 4, 2023, from https://www.ibm.com/topics/saas
[7] Top 5 Advantages of Software as a Service (SaaS). (2020, September 18). IBM. Retrieved July 4, 2023, from https://www.ibm.com/cloud/blog/top-5-advantages-of-software-as-a-service
[8] What is SaaS? | SaaS definition. (n.d.). Cloudflare. Retrieved July 4, 2023, from https://www.cloudflare.com/learning/cloud/what-is-saas/
[9] What is SaaS? Software as a Service. (n.d.). Microsoft Azure. Retrieved July 4, 2023, from https://azure.microsoft.com/en-us/resources/cloud-computing-dictionary/what-is-saas
