SaaS is a method of software delivery that allows data to be accessed from any device with an internet connection and a web browser. In this web-based model, software vendors host and maintain the servers, databases, and the code that makes up an application. The cloud-based model is so common now that more than 60% of software seekers who call Software Advice only want web-based products—less than 2% specifically ask for on-premise software.

One of the main advantages of technology nowadays relates to savings in business expenses. Technological advances mean small businesses can operate successfully on a fraction of what it once cost. Key components of small-business infrastructure, including sales, accounting and data storage, can now be managed entirely online by renting software remotely as opposed to installing and operating software physically in-house. These Internet-based software applications are collectively labeled software as a service or SaaS. The advantages of SaaS technology nowadays for small businesses include cost savings, tracking, and increased efficiency.

Software as a service (SaaS) allows users to connect to and use cloud-based apps over the Internet. Common examples are email, calendaring, and office tools (such as Microsoft Office 365). SaaS provides a complete software solution that you purchase on a pay-as-you-go basis from a cloud service provider. You rent the use of an app for your organization, and your users connect to it over the Internet, usually with a web browser. All of the underlying infrastructure, middleware, app software, and app data are located in the service provider’s data center. The service provider manages the hardware and software, and with the appropriate service agreement, will ensure the availability and the security of the app and your data as well. SaaS allows your organization to get quickly up and running with an app at minimal upfront cost.

The SaaS model can reduce costs for IT infrastructure that would previously have hosted the applications. It can also minimize some of the time spent on management tasks, because a SaaS provider is responsible for upgrades and management. The SaaS model often makes sense as various technology trends require faster, more agile, and on-demand architectures as well as more rapid software updates. Technologies that have fueled demand for SaaS include cloud computing and edge computing, 5G and Wi-Fi 6, Internet of Things-connected devices, collaboration technologies, mobility, and immersive experiences enabled by artificial reality (AR) and virtual reality (VR). These technologies can be data-hungry and compute-intensive, and require low-latency, high-performance infrastructure on which to perform. Many business applications are now available in the SaaS model, such as email, sales management, customer relationship management, financial management, human resource management, billing, and collaboration applications.

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Types of SaaS Solutions:

Customer Relationship Management (CRM) Software

Enterprise Resource Planning (ERP) Software

Accounting Software

Project Management Software

Email Marketing Software

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