customer experience
10 min
What is SaaS?
“Software as a Service” explained easily
What is Software as a Service (SaaS) and what advantages does this delivery model for software offer in contrast to traditional operation? You can find out this and much more in this article!
Table of Contents
Introduction
SaaS, short for “Software as a Service”, has revolutionized the way companies use software. Instead of installing programs locally, users access software applications via the internet. This enables flexible and cost-efficient use that is independent of location.
Digitalization is forcing companies to modernize their work processes, and SaaS offers the perfect solution. With its ease of implementation and ability to reduce costs, SaaS is increasingly becoming an indispensable part of business strategy for both small start-ups and global corporations.
What is “Software as a Service”?
SaaS is part of cloud computing and is one of three main models: IaaS (Infrastructure as a Service), PaaS (Platform as a Service) and SaaS (Software as a Service). SaaS stands out by providing fully usable software that can be used directly without any prior technical knowledge.
How does SaaS work?
SaaS is based on a central infrastructure that is managed by the provider. The software runs on servers in a data center and users access it via a browser or an app. The most important features include:
- Deployment via the cloud: you don’t need an installation, everything runs online
- Automatic updates: Users always work with the latest version of the software.
- Flexible use: SaaS solutions can be easily scaled according to company size and requirements.
Advantages of SaaS for companies
The introduction of SaaS offers numerous advantages for companies of all sizes:
Economic advantages
- Lower investments: No high upfront costs for servers or software licenses.
- Predictable costs: The subscription model makes expenses clearly calculable.
- Reduced IT costs: providers take care of maintenance and updates.
Technological advantages
- Scalability: SaaS adapts to the needs of your company.
- Easy integration: SaaS solutions can often be seamlessly integrated into existing systems.
- Location independence: Access to the software from any internet-enabled device.
Examples from practice
- Start-ups use tools such as Trello for project management.
- Large companies work with CRM tools such as Salesforce to manage customer relationships efficiently.
- Educational institutions rely on SaaS solutions such as Google Classroom for online learning.
Example of modern SaaS solutions
Cloud-operated software is particularly relevant when it comes to reducing internal IT costs. After all, there is no need to operate and maintain your own server infrastructure. This is the case with classic on-premise hosting, for example.
Two examples of modern business solutions (B2B software) are DAM and PIM. While Digital Asset Management systems are responsible for the central administration of media data, Product Information Management solutions control the uniform organization of all product data.
Challenges with SaaS
Data protection and data security
Storing data in the cloud entails security risks. Companies should ensure that their providers are GDPR-compliant and adhere to the highest security standards.
Dependence on the provider
Switching from one SaaS provider to another can be complex, especially with large amounts of data. Companies should check providers carefully and look out for flexible contract terms.
Cost management
Although SaaS is cost-efficient, the costs can add up with uncontrolled use. It is important to regularly check which services are actually being used.
SaaS compared to traditional models
| Feature | SaaS | Traditionelle Software |
| Provision | Via the Internet | Local installation |
| Cost structure | Subscription-based | High one-time costs |
| Updates | Automatically by the supplier | Manually by the company |
| Accessibility | Location and device independent | Linked to local systems |
Tips for a successful introduction of SaaS
- Analyze requirements: Clearly define which requirements the software should fulfill.
- Compare providers: Check several providers for price, functions and security standards.
- Prepare integration: Ensure that the software is compatible with existing systems.
- Offer training: Your team should be able to use the new tools effectively.
Future and trends of SaaS
The future of SaaS will be shaped by new technologies and innovations:
Artificial intelligence
AI will make SaaS solutions more efficient and user-friendly. Examples include automated workflows, personalized dashboards and intelligent data analysis.
Sustainability
More and more providers are opting for green data centers that are more environmentally friendly. Companies can reduce their own CO₂ emissions by using sustainable SaaS solutions.
Industry-specific solutions
The demand for specialized SaaS applications is increasing. Providers are developing tools that are specifically tailored to the requirements of certain industries.
Conclusion
SaaS is a modern, flexible and cost-effective solution that supports companies in their digital transformation. With access via the internet, simple scalability and automatic updates, SaaS enables a completely new way of using software.
Whether you are a small start-up, medium-sized company or large corporation – SaaS offers advantages that conventional software models cannot provide. With the right strategies and a suitable provider, companies can make the most of the advantages of SaaS and increase their efficiency.
