What is Cloud-Based SaaS Application?
There are three categories of cloud computing – SaaS (Software as a product), PaaS (Platform as a Service), and IaaS (Infrastructure as a Service). With IaaS, Provider manages most features from Data Centers to Servers and Virtualization. Customers get to monitor operating systems, databases, security, and apps. PaaS customers control only apps and everything else is side-managed. With SaaS Provider manages everything.
SaaS is a business model of distribution when an app is hosted on the cloud and the customer uses it on the web after agreeing to a certain subscription plan. It differs from on-premise apps in the nature of software delivery and maintenance. You don’t sell your product once and for always—users pay monthly or yearly fees according to their plan and then use it. They don’t have to set up the app to their computers – it is hosted on the cloud. You won’t have to distribute each version separately as the updates will be implemented to the cloud and each customer using your software will use the latest version of it right after you implement it. The subscription model is the main differentiating feature of SaaS. The specific sum of money, which is usually significantly lower than in the on-premise apps, is being charged monthly, quarterly, yearly, or per user.
The benefits of building doing SaaS:
- It’s cost-effective. No need to invest in hardware, long and complicated development;
- Cloud-based web apps are accessible from everywhere;
- Apps can be used across multiple devices;
- It provides regular revenue;
- Lower costs for users entice them going for SaaS instead of On-premise;
- Regular and instant updates;
- The availability of trial or free plans;
- No configuration and ease of use for customers.
When you buy an on-premise software, which is usually costly, you evaluate if you really need it and whether you can go on without it. SaaS helps to get rid of doubts because you can just subscribe for a month and then choose to continue the collaboration of not. If the app is too complicated for your purposes or, vice versa, is not enough, it’s easy to switch to another. As a user, it entices you into purchasing a plan more effectively than buying a full application on-premise. Thus, with each year the popularity of SaaS solutions grows because of its convenience, low resource cost, and larger scale of delivery.