What is SAAS?

Cloud-based service where downloading software on a desktop PC/business network device to run the applications is not needed. Instead, any software application is accessed via an internet browser.

The software application could be anything and everything from office software to personal communication and networking software etc.

It can be used for personal/professional, or both uses.

In the SaaS model, a cloud provider hosts applications and delivers them to users over the Internet. Independent software vendors (ISVs) may use third-party cloud providers for hosting, while larger companies like Microsoft often serve as both the software vendor and the cloud provider.

What is SAAS Software?

SAAS application is the software model that organizations don’t have to host on-premise. And is usually maintained by a third-party service provider and is made available to customers over the Internet.

It is not like traditional software that needs physical installation on individual computers, SAAS applications can be accessed from anywhere, anytime, just using a web browser. This model reduces the need for extensive IT infrastructure and hence offers flexibility, regular updates, and maintenance, which the service provider manages.

2024 SAAS trends and stats analysis

The global SaaS market is expected to touch $317.55 billion by the end of 2024, which is significantly up from $273.55 billion in 2023.

The market is expected to grow to $1.23 trillion in the next 6 years by 2032, with an annual growth rate (CAGR) of 18.4%.

92% of business leaders are either already in process or likely to purchase AI-powered software in 2024.

SAAS Architecture

SaaS Architecture is the underlying structure and components that support the delivery of software applications over the Internet.

Before architecture, let us read about two SAAS structures.

Vertical SAAS Structure:

• Cloud-based software solutions are designed to cater to the specific needs of a particular industry or market segment.
• It has predefined and pre-targeted niche markets and serves particularly that only.
• It helps in solving industry specific problems, which makes it easy to adapt and implement.
• Examples,

– Veeva Systems: Life Science Industry

– Mindbody: Health and Wellness

– Procore: Construction Industry

– Toast: Restaurants

– Shopify: e-commerce, etc.

Horizontal SAAS structure:

• Cloud-based software solutions are designed to serve a wide range of industries and diverse business worlds.
• These applications are generalized and present common solutions, plus offer functionalities that are applicable across various industrial sectors.
• Horizontal SaaS products meet common business goals and issues along with providing scalable, flexible, and pocket-friendly solutions.
• Examples,

– Salesforce

– Slack Technologies

– Hubspot

– Zoom

– Dropbox

– Mailchimp, etc.

Single Tenant SAAS Architectural Model:

• SaaS architecture is dedicated to separate software instances and supporting infrastructure for each customer individually.
• Each tenant has its dedicated resources, ensuring isolated data and individuality.
• Offers enhanced security, customization, security, privacy, and optimal, efficient performance.
• Examples of SAAS Single Tenant,

– Adobe Experience Manager, ServiceNow, Oracle Single Cloud, etc.

Multi-Tenant SAAS Architectural Model:

• SaaS architecture involves a single instance of software application serving multiple customers (tenants). Efficient resource utilization and simplified maintenance are very well achieved.
• Each tenant’s data is isolated and remains hidden from others. Data is logically isolated, which ensures privacy and security. This is achieved through database schema or table separation.
• Cost-effective method of efficient scaling and management. Regular updates and maintenance are performed centrally.
• Examples of SAAS Multi-Tenant,

– Slack, Zendesk, Salesforce, Google Workspace, etc.

Mixed/Hybrid Tenant SAAS Architectural Model:

• SaaS Architecture model that combines elements of both single-tenant and multi-tenant SaaS architectural models to reap the benefits of both approaches.
• Some parts of the model are dedicated especially to cater to individual organizations that need isolation and have individual customization requirements.
• While other parts are shared among multiple organizations, allowing resource efficiency, cost savings and easier management of commonly needed features.
• Examples,

– Salesforce, Microsoft Dynamics 365, etc.

Working of SAAS: How does SAAS work?

• SAAS operates through a cloud-based model where vendors host applications and data on their own or third-party servers.
• SAAS providers manage the entire stack, including platforms, operating systems, and middleware. SAAS implementation is a well well-planned blueprint that service providers execute.
• Upon subscribing, customers access the software via a web browser with login credentials provided by the vendor.
• Typically, SAAS employs a multi-tenant approach, where one version of the application serves multiple clients. However, there are other models as well.
• A Service Level Agreement (SLA) outlines the terms of service, including uptime, security, support, and updates, while specifying customer responsibilities. SLAs ensure businesses retain ownership of their data and have the right to download and back it up at any time.

SAAS Advantages

• Cost Friendly:

Reduces the need for upfront hardware and software installing and other investments, offers subscription-based pricing model.

• Scalable:

SAAS can be easily scaled up or down based on user needs without requiring many infrastructure modifications.

• Accessible:

SAAS is accessible from any device and any location with an internet connection, facilitating remote work.

• Automatic Updates:

Users get automatic updates and have to take no tension for manually updating features.

• Maintenance-Free:

Reduces the burden on IT teams for managing hardware and software, allowing them to focus on more important strategic initiatives.

• Security:

SAAS providers often implement robust security measures and compliance protocols, potentially enhancing data and privacy protection.

• Disaster Recovery:

SAAS includes built-in disaster recovery and backup solutions, minimizing data loss risks.

• Customizable Cost Models:

The subscription model provides predictable costs and budget management.

SAAS Risks and Challenges

• Data Security Risks:

Uncertainty over the risk of data breaches and unauthorized access, especially when the provider’s security measures are inadequate.

• Compliance Issues:

Ensuring the SaaS provider complies with industry regulations and data protection laws can be challenging, as there is no method to cross-check it. Trust the company is only the method.

• Vendor Lock-In:

Difficulty faced in migrating data and applications to another provider or in-house solution, if needed.

• Service Downtime:

High dependency on the provider’s uptime and reliability.

• Limited Customization:

SaaS solutions may not always offer the required customization needed per specific business needs.

• Performance Issues:

Potential risks of slower performance if the service provider’s infrastructure is not adequately supportive.

• Cost Overruns Uncertainties:

Subscription costs can breach and add up costs, especially if scaling up is needed or adding additional features is demanded.

• Internet Connectivity issues:

Reliance on a stable internet connection is the backbone of SAAS. Hence, connectivity issues can impact the user.

SAAS Solutions and Best Practices

• Choose reliable service providers:

Opt for vendors with strong background reputations and security, compliance, and reliability records.

• Evaluate Scalability:

Ensure the SAAS solution can grow and fulfill business needs.

• Check Integration Capabilities:

Verify interoperability and integration compatibility with existing systems and other SaaS applications.

• Review Security Measures:

Confirm robust encryption, access controls, and regular audits are in place.

• Understand Pricing:

Be aware of subscription costs, including potential hidden fees for extra features or usage.

• Ensure Data Backup:

Confirm the provider has reliable backup and disaster recovery plans.

• Regularly Review Contracts:

Monitor and review terms and conditions to avoid risks and vendor lock-in.

• Train End Users:

Provide adequate training to employees to maximize learning and adaptation among users.

Managing SAAS applications can be difficult. Hence, SAAS Development services are provided by authentic expert service providers.

SAAS Examples

– Salesforce

– Microsoft 365

– Google Workspace

– Slack

– Zoom

– Dropbox

– Hubspot

– Gmail

– Adobe Creative Cloud

– Zendesk

– Teams

– Netflix

– Spotify

– Google Drive, etc.

 

Conclusion

SAAS provides cloud services, which have their risks and advantages. The world is rapidly taking steps towards a full SAAS environment; hence, the providers are vigilant of the risks and provide all possible solutions to minimize risks and maximize productivity.