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The Rise of SaaS Companies

Software as a service company (SaaS) is a software distribution company in which a third-party provider renders hosting services for applications, availing them for customers over the Interest. A SaaS company delivers applications to its customers over the Internet in form of a service. The user does not have to install or maintain a software, but rather has to access it via the internet.
Written by:
Shivi Gupta
Published on
24-Jul-18

Software as a service company (SaaS) is a software distribution company in which a third-party provider renders hosting services for applications, availing them for customers over the Interest. A SaaS company delivers applications to its customers over the Internet in form of a service. The user does not have to install or maintain a software, but rather has to access it via the internet. 

A SaaS company frees the user from the complications of managing intricate software and maintaining hardware. Sometimes, SaaS applications are also known as web-based, on-demand or hosted software which runs on the SaaS provider’s servers. The service provider manages the security, availability, and performance of the application. 

Through SaaS, data can be accessed from any remote device which has access to an internet connection and a web browser. This method is advantageous as the company is not required to buy comprehensive hardware to host the software and allows the buyer to externalize IT issues like troubleshoot and maintenance of the software. 

A SaaS company eliminates the need for clients to install and run applications on their computers or data centres. This eliminates the expense of hardware acquisition, provisioning, and maintenance, as well as software licensing, installation and support. It also provides a flexible system of payments as the customers subscribe to the applications on either a monthly or pay-as-you-go method. 

The ascent of SaaS model is parallel to the rise of cloud-based computing, which makes it highly scalable giving customers the option of accessing as many services as they require. For large organizations, updating software was a time-consuming endeavour. Depending upon the service level agreement (SLA), the customer’s data is stored locally, in the cloud or both.

Types of software that have migrated to a SaaS model are often focused on enterprise-level services, such as human resources, customer relationship management, and content management. These types of tasks are often collaborative in nature, requiring employees from various departments to share, edit, and publish material while not necessarily in the same office.

SaaS has numerous uses including tracking leads, scheduling events, managing transactions, automating sign up, auditing and more. The only drawbacks involved in adopting SaaS model is the issue of data security and speed of delivery. As the data is stored on external servers, companies have to be sure that it is safe and cannot be accessed by unauthorized parties. Slow Internet connections can reduce performance, especially if the cloud servers are being accessed from far off distances. Internal networks tend to be faster than Internet connections.

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