What Is Software as a Service Business Model

SaaS, an acronym for Software As A Service business model, is a software system where a user’s data is stored, and any required software is delivered to the user via an Internet browser rather than being downloaded, installed and run on the desktop. Popularized after 2006, this new system has reduced the software costs to a minimum. You do not need to set up a separate IT department and work team or deal with server systems for the software you need to use. However, instead of the software, you are actively using, transferring your work to the software on the SaaS system enables you to reduce your pre-made costs in the long run.

As one has the opportunity to access the software such as SaaS, CRM and ERP via the cloud database, companies operating in different regions will cut down on costs. Google’s services, such as Google Drive, Google Docs, and Gmail, are some of the well-suited examples of SaaS. It is possible to send mail through these services, edit your documents and back up your files. You do not need to have programming knowledge to execute these transactions.

What are the Benefits of Software as a Service (SaaS) to Companies and Institutions?

  • The software update is not required.
  • It does not create expenses like licensing and purchasing the software.
  • Server cost is avoided.
  • You pay as much as you use the software with no need of purchasing it.
  • Since SaaS is web-based, you are able to access your data anywhere at any time.
  • Needs such as technical maintenance and IT staff disappear.
  • You do not need to allocate a budget for security.

In addition to all of these, physical servers are backed up at regular intervals as a precaution against any malfunction. Since the cloud server service is configured in the Cluster infrastructure where multiple computers are running as copies of each other, it continues to run on one of the other redundant servers without interruption when a problem is encountered.


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