Software as a service (SaaS) is an internet-based application delivery and licensing model where software is licensed on a monthly subscription basis and is centrally located. It can be called “on-demand software” and was previously called “off-site software” by Microsoft. With this model, companies do not need their own infrastructure to run software applications. Instead, the hosted software is run on the company’s own network.
Software as a Service is ideal for enterprises that want to leverage the cloud computing, which offers software development and hosting at a lower cost than on-site programming. It helps create agility for the end user when it comes to application deployment and reduces operational costs. With SaaS, developers only pay for the features they use. This reduces costs, because there is no need to build physical servers to host applications, as is the case with SaaS. Developers can thus easily test and consume the software on a pay as you go model.
An enterprise may use Software as a Service (SaaS) to replace its on-site physical server infrastructure. The benefits of this model are that users are able to gain access to a greater variety of tools and programs while paying less for the same level of functionality. They also have control over their own software applications and do not have to rely on any third-party vendors for their application experiences. However, replacing physical infrastructure with cloud-based services requires careful planning and evaluation of the pros and cons of various options.
There are two types of Cloud computing: infrastructure-based and applications-based. Infrastructure-based Cloud computing is related to using the services of a third party for critical infrastructure such as data centers, application servers, network connectivity and hardware. The services are deployed on demand, without the need for any upfront investments. Applications-based Cloud computing works by providing software as a service via the Internet. It may utilize a variety of on-demand services including database server, application servers, mail servers, gaming servers and other shared resources. Most providers offer several tiers of storage as well as application services to satisfy customers.
The biggest benefit of a Software as a Service provider is its lower cost of ownership. Companies that use cloud computing to achieve greater operational efficiencies stand to save a significant amount of money. This is primarily because they do not need to pay for and maintain expensive data centers or hire in-house IT staff. Furthermore, cloud computing offers a cost-efficient way of managing critical business information. With the right programming and tools, a company can build a powerful information management system and then use the cloud to make improvements to it rapidly and efficiently.
Efficient usage of applications and management of large amounts of data are only some of the benefits of Software as a Service. In fact, bigcommerce stores also reap the benefits of using this method of delivering retail solutions. When shopping on the web, customers expect to find a range of products, various terms and conditions and payment options. For such reasons, large retailers need to avoid spending money on data center upgrades and maintaining an expensive data center network. A Software-as-a-Service provider can deliver all of these and more through its platform, the bigcommerce cloud. Through this software solution, a retailer can make secure transactions by integrating it with its mobile apps and web stores.
In a competitive market such as the one faced by most businesses today, time is often of the essence. Companies have to make fast decisions to stay ahead of their competitors. The solutions provided by cloud vendors such as Google, Amazon and others can speed up decision making and make decision outcomes more accurate. This helps in increasing efficiency in operations, reducing costs and improving customer satisfaction. Many companies find that once they use SaaS solutions, they are able to spend more time focusing on core business activities and less time and effort on managing their data centers.
Many business enterprises today are moving from traditional on-premise software models to SaaS-based models, because these models allow for better utilization of available resources. There are many ways in which this model differs from traditional on-premise software such as Salesforce, OpenOffice and Microsoft Office. The Salesforce platform allows for easy integration with third party vendors such as Google, IBM and others. Google Cloud Platform, in particular, has made it easier for many companies to run their business processes across multiple platforms, because it offers a common programming interface and common database experiences.