What is SaaS and How Does It Work?

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SaaS – Software as a Service – has revolutionized how businesses work and has completely changed how organizations now operate. These applications or products dispense information and data in a manner that they’re easily accessible from literally a web browser sitting in any part of the world. SaaS companies have greater control and power over their products than quintessential companies which translates to the fact that they have better security, a superior user experience and their pricing policy is also a whole lot better because they operate on a monthly subscription plan paid by the customers. 

All in all, SaaS companies under different organizations have a mechanism where they let their users create, develop, host and update their products and services all by themselves. What makes this market such a huge and remarkable success is that they have brought the product to the customer with no delivery costs at all. It is an unrestricted global market that has given immediate access to millions worldwide. 

How Do Saas Platforms Work?

Software as a Service model works as a software distribution platform where a cloud-based host provides the ramp to host applications and make them easily accessible and available to end users over the internet. Any third-party cloud vendor could be asked to host a website/platform by any Independent Software Vendor. In the case of much larger organizations, both these parties could be the same example, Microsoft. 

As cloud computing was considered to be the future and the future is literally now and everything is now cloud-based which includes Software as a Service (SaaS), Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). The variety to choose from is huge, it ranges from Netflix to even advance IT Tools and services. 

The mechanism is simple, the application or software is hosted by a software provider and will use its own database, servers or may contact a third-party to host it for them. So once that has been established, anyone can connect with it and access it using an internet connection. 

This main advantage to the end user is that they do not have to maintain it or update it, they pay a monthly fee and get full access to all the available features. 

Key Areas Where Saas Is Being Used:

SaaS has so far been proven successful in these areas/markets as:

  • Smartphone applications
  • Human Resource management software
  • Accounting and Payroll software
  • Resource planning software
  • Customer Relationship software
  • Performance management software

Advantages Of Saas:

Ease of Access

Users can access and obtain information or data with any device with an internet connection even at the comfort of their homes. You just log-in your account maintained on the SaaS software and you’re good to go. 

Reduced Time and Costs

The time to download and install the softwares has been completely eliminated. You no longer need to wait for installation to complete to use a SaaS. Also there are no added costs to their usage. It’s a monthly amount that you have to pay to use the service and that is all there is to it. 

The pay-and-go method for customers also makes it so popular and likeable in the market. 

Data Storage

Data is timely and safely secured on to the cloud and there’s no worry about losing it. Automated backups save you the cost, time and trouble of backing your data manually or by yourself. With SaaS, it is no longer the user’s responsibility. This solely lies on the software vendor. 


As an end user, you will never have to worry about the maintenance of the entire thing. That is entirely up to the software vendor to keep it secure, updated and up and running. 

Easy Payments

The method to pay and the costs are easy and minimal as compared to actually purchasing a software and paying premiums every month for maintenance on a yearly basis. These platforms only require an affordable monthly fee that you subscribe to at any time and can cancel it at any point in time too. 


Such products and innovations have truly changed the way businesses behave and operate. It has opened a vault of brand new ideas and how this could be expanded even further with time. SaaS products are efficient, time-saving, cost effective and also extremely user-friendly which is why a customer is drawn towards such inventions that make the life of an average man much easier.

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