What is SaaS?
Software as a Service
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.