The acronym, at first, may cause strangeness. But it is very likely that you use some type of SaaS more than once in your day-to-day life and do not even realize what it is.

Netflix, Spotify and LinkedIn are some of the most common examples, as well as Microsoft Azure, Amazon Web Services (AWS) and Google Cloud Platform, service providers related to cloud computing (cloud computing ) .

If in the past it was necessary to spend fortunes buying software and licenses, today it has never been so easy to hire services. There are several companies that provide the most varied applications remotely.

But, after all, what is the term SaaS about, what are the advantages, disadvantages and how to apply it in my company? Check out the answers to these and other questions below.

In this content, you will see:

What is SaaS?

SaaS is derived from English and means Software as a Service . But it can also be called cloud-based software, on-demand software or hosted software.

This type of business emerged from the need to obtain increasingly immediate responses and ended up revolutionizing user consumption and the way brands make their solutions available.

SaaS is nothing more than a way of offering software and technology applications as a service over the internet and licensed by a subscription model.

Today, most SaaS companies rely on cloud computing to market their services from the cloud .

How does Software as a Service work?

In the past, you had to pay a lot for a CD to listen to a few songs. Today it is possible to have access to thousands of albums, at a more affordable price, by subscribing to a streaming service, such as Spotify.

This is the logic of Software as a Service. That is, it is no longer necessary to purchase licenses or install and update software.

It is the provider that grants, free or not, access to its service, which is based on the cloud and, therefore, can be used from anywhere and at any time.

SaaS companies manage this access and maintain the data security structure, connectivity and servers necessary for the service.

Currently, Software as a Service is considered the most widespread form of cloud computing technology. Many corporate systems, such as CRMs and ERPs, operate this way, as well as webmail, considered one of the first cloud services.

Benefits

Software as a Service can be very advantageous both for those who decide to hire them and for the companies that provide this type of service. Among the benefits of SaaS are:

• Low initial investment: it is possible to have access to all the functions and sophistications of traditional software models, however, without the regular maintenance charges, fees and initial costs of license and infrastructure;
• Ease of access and deployment: the use of Software as a Service takes place through any computer or device, anytime and anywhere, usually via internet connection and cloud computing;
• Convenience: the company interested in hiring a SaaS does not need to install, maintain and update hardware or software. Updates and maintenance of services happen automatically, since they are on the internet;
• Customizations and integrations with other systems: it is possible to buy additional packages or customize the service to further increase its efficiency. In addition, most providers offer integration with other systems;
• Fast upgrades: The SaaS Company is responsible for managing upgrades and updates, as well as service availability. So you don’t have to worry about downloading, installing the application, or even adding hardware and software as your user base grows;
• Security: Another advantage of SaaS is high availability and data loss protection, as everything is synced in the cloud and easily updated between devices.

Disadvantages

Although it has several advantages, Software as a Service also has its disadvantages, which need to be considered when hiring this type of platform.

The issue of security is one of them. While it is possible to rescue data in the cloud, identity and access management issues can occur if the SaaS does not have good protection.

Another disadvantage is the difficulty of customization, as with other types of standard software. Tailoring, however, will depend on the selected SaaS solution and its provided configuration options.

Typically, SaaS is licensed on a subscription basis, which is often monthly or yearly, which can pose yet another difficulty.

There is also a need to train employees who will use the tool, which takes time and, not infrequently, financial resources.

Because it is used at the same time by several people, many of them without in-depth IT knowledge, there is a greater risk of human error, especially at the beginning of the implementation.