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What is SaaS?

Software as a Service
What is SaaS?
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I started my career as a web application software developer. Throughout the years, I worked on many SaaS web application projects, eventually specialising in the domain.

SaaS (Software as a Service) is a way of delivering software over the internet. Instead of buying a disk and installing a program on your computer, you log in to a website or app to use it.

How does it work?

The software is hosted on a central server managed by a provider. You access it via a web browser or mobile app.

You likely use SaaS every day without realising it:

  • Productivity: Google Workspace (Docs/Sheets), Microsoft 365, Slack.
  • Business Tools: Salesforce (CRM), Zoom, Shopify.
  • Entertainment: Netflix, Spotify (these are technically SaaS for media content).

Advantages for users

  • Low Upfront Cost: No need to buy expensive servers or bulk licenses.
  • Scalability: If your team grows, you just add more "seats" to your subscription.
  • No Maintenance: You don't need an IT team to fix bugs or install security patches.

Disadvantage for users

  • Internet Dependent: You can't use the software without an internet connection.

SaaS is beneficial for both users and the operators. It is also one of the best business models in the world.