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Software as a Service (SAAS) - Explained

What is Software as a Service?

Written by Jason Gordon

Updated at April 14th, 2022

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Table of Contents

What is Software As A Service (SaaS)?How does Software As A Service or SaaS Work?Advantages of Using Software-as-a-ServiceDisadvantages to Software-as-a-ServiceAcademic Research on SaaS

What is Software As A Service (SaaS)?

Software-as-a-Service (SaaS) simply describes a software licensing and distribution model that accommodates an external or a third-party provider host application and makes it accessible to internet users. SaaS is located on external servers rather than internal servers. Also, access to SaaS software is based on subscription because it is centrally hosted, this is why some people refer to it as on-demand software. Every user need not install SaaS on their computer before accessing it. All that is needed internet connection given the fact that it requires a user to log in with a username and password through a web browser.

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How does Software As A Service or SaaS Work?

The emergence of SaaS is associated with cloud computing, it is regarded as one of the three categories of cloud-based computing. In past times, due to the need to constantly update computer softwares, early companies purchase compact disks containing updates before they are able to update software on their computers. But since SaaS came on board, updating softwares has been much easier for large companies. Once a copy of SaaS is installed on devices that need to access it, instead of purchasing compact disks, companies purchase software licenses which are available for downloads on the internet.

Advantages of Using Software-as-a-Service

Software-as-a-Service (SaaS) is a software licensing model that is not dependent or live on a companys server, it is located on external servers and not servers located in-house. SaaS as a modern software has more benefits over traditional licensing models. Accessing SaaS is less time-consuming and less-demanding for companies that want to access it. Having its location on external serve, users can easily access it through a web browser. Aside from the fact that it is affordable, it can easily be used for software updates and debugging. Companies can schedule events, manage and audit transactions and track leads using SaaS.

Disadvantages to Software-as-a-Service

Despite its numerous benefits. SaaS also has some dark sides and drawbacks. The common disadvantages of SaaS that many users experience are;

  • Fear of data insecurity.
  • Slow speed delivery.
  • SaaS performance is determined by how strong an internet connection is.
  • Unreliable data sharing.

SaaS uses external servers for storing of data and this induce fear in companies as regards the confidentiality of data stored using SaaS because the data can be accessible to unauthorized persons. Bad internet connections also impede the performance of SaaS, hence, a total breakdown of internet connection create a disability for SaaS. Companies then discover that internal networks are faster than internet connection which is a drawback to SaaS.


software as a service saas

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