What is SAAS?

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The abbreviation SAAS stands for the term Software as a Service. It is a distribution and licensing model that offers software programs as a service that can be accessed via the Internet.

Normally, usage is based on a subscription. SAAS is therefore ideal for software applications used in a professional context, such as CRM, instant messaging or e-mail.

The following article shows what is meant by the term SAAS in detail and how companies benefit from using the cloud solution in their day-to-day business.

The development of SAAS

The idea of centrally hosting applications emerged as early as the 1960s. The triumph of the Internet then led to the appearance of the first application service providers in the 1990s. An ASP operator managed and hosted third-party applications – but at that time it was still necessary to install the software on the user computers.

Basically, SAAS is an evolution of this model. Providers and operators manage their own software. However, installation is no longer necessary because the software is provided directly via the Internet connection.

This concept is also known as the cloud. Cloud computing gives companies the opportunity to use resources depending on their current needs. For the business world, the SAAS concept thus creates enormously high efficiency and cost-saving potentials.

SAAS offers these advantages

By switching to cloud-based solutions, companies can significantly benefit in numerous areas of their day-to-day business. For example, SAAS solutions lead to increased profitability and efficiency. However, there are also benefits in easy remote access to automatic updates and services and practical scalability.

The costs for configurations and infrastructures can be massively reduced. Depreciation expenses for investments are also avoided. In addition, the services can be accessed from any Internet-enabled end device. As a result of the non-existent spatial restrictions, working from the home office is significantly facilitated, losses in the productivity of field staff are reduced and less office space is required.

Compared to IT solutions that have to be installed internally, setting up SAAS is much easier and faster. In addition, user access to the services is generally on a per-month, per-workstation basis. Companies thus benefit from the high scalability and only have to pay for the services that are actually used. If there is ever a short-term increase in demand, it is no problem to integrate additional applications or workstations promptly. Thus, not only the scalability itself is a convincing argument, but also the resulting increased convenience.

Optimized service level agreements can be used for performance and uptime. The operator of the SAAS always ensures regular automatic updates. There is no need for maintenance or support of legacy versions of the software.

Based on user feedback, the operator usually also performs timely optimizations of the application. This significantly reduces the workload on a company’s internal IT department, which can then focus on the core tasks of the company. Of course, the operator also always ensures that all customers can rely on a high level of security when using the services.