Skip to content

Software as a Service: Valuable Resources at A Lower Cost

Harness the Software as a Service Model Advantage

Cloud offers multiple service models, including infrastructure as service, platform as a service, and software as a service. As more firms and enterprises move their operations to the cloud, choosing the right service model is critical. Indeed, dealing with increasing demand and changes in the market requires an agile and effective approach. 

As a result, companies need to procure the proper cloud model to run their operations seamlessly. Cloud offers both agility and effectiveness, enabling organizations to successfully navigate the constantly evolving business world. 

Compared to the traditional, on-premise infrastructure, it offers multiple advantages. Enterprises can acquire more storage, processing power, and other capacities for their corporate system and data. It is all possible without paying extra fees and acquiring multiple resources with the cloud. 
Organizations benefit from a reliable, fast, robust, scalable, and secure IT system while streamlining their operations. Cloud offers Internet-based services, which provide great accessibility and availability. Multiple companies have been saving money and optimizing resources with cloud services in recent years. It offers storage, software, and processing power, all while giving affordable options. However, the types of offerings differ from one service model to another. Each service model satisfies a unique set of business requirements

What Are the Three Cloud Service Models?

In order for businesses to wisely choose the service model that fits their requirements, they need to understand each service model’s characteristics and the additional value it generates. Below are the three service models and their different features:

  • The platform as a service model provides access to a cloud-based environment and allows users to create and deploy applications without having to install and use the costly integrated development environment or IDE. In addition, users can often customize the capabilities they want to include in their subscriptions. 

According to Gartner, the platform as a service model has the smallest market share of the three service models and is expected to generate 27 billion US dollars n in sales by the end of 2021. In the modern market, the platform as a service model providers offer applications such as Microsoft Azure, Apache Stratos, and Google App Engine. 

  • The infrastructure as a Service model provides a standardized way to capture computing capacity on demand and over the Internet. These resources include storage equipment, networks, computing power, and private virtual servers. Users pay for these resources as part of the pay-as-you-go model. In this model, you are billed for features such as storage capacity used and computing power used over a period of time. 

With this service model, customers do not have to manage the infrastructure. It is the provider’s responsibility to guarantee the contractually agreed number of resources and availability. Currently available infrastructure as a Service model services includes Google Cloud Platform and Amazon EC2.

  • Software as a Service provides cloud users with applications that are accessed over the web and managed by the software provider, not the company. This relieves the company from the burden of software maintenance, infrastructure management, network security, data availability, and all other operational issues associated with maintaining application execution. 

The software as a service billing method is typically based on factors such as the amount of data stored, the number of users, usage time, and the number of transactions processed. The software as a service model has the largest market share in the cloud. According to Gartner, the SAAS sales will reach $ 117 billion by the end of 2021. Current applications for SaaS include schedulers, field service solutions, system monitoring solutions, and more applications

A Closer Look at The Software as a Service Cloud Model

The software as a Service model represents a method of delivering an application as a service over the Internet. Instead of installing and maintaining software, simply accessing it over the Internet frees users from managing complex Software and hardware. The software as a Service application is also referred to as on-demand Software, web-based Software, or hosted software. Regardless of the name, the SaaS application runs on the cloud provider’s server. The cloud service provider manages access to applications while handling their security, availability, and performance. It is considerably easy for users to access cloud-based applications. They simply need an Internet connection and a web browser. They don’t have to buy or purchase any hardware or software. They don’t have to install, maintain, troubleshoot, or update the software.

The Software as a Service Model Properties

The Software as a Service Model protects the privacy of all its customers while providing reliable and secure services on a large scale. All service users can access the system and technology without worrying about someone gaining unauthorized access to their information. The essential characteristic of the software as a service model is the following:

  • Multi-tenant architecture: A multi-tenant architecture is a concept where all users and applications share a single, centrally managed common infrastructure and codebase. Because all Software a Service model clients share the same infrastructure and code base, cloud providers can innovate faster and save valuable development time previously spent maintaining multiple versions of older code.
  • Easy customization: The potential for all users to easily adapt their applications to their current business processes without impacting a common infrastructure. Due to the software as a Service architecture, these customizations are unique to each company or user and are always maintained when there are upgrades. As a result, the software as a Service provider can upgrade more often, with lower implementation costs and less risk.
  • Better access: The Software as a service model improves access to data from any network device, making it easier for anyone to manage permissions, monitor data usage, and display the same information simultaneously. 

Explore the Undeniable Advantages of the SaaS Model

The software as a Service model provides an interesting alternative to standard software installation in a business environment. The traditional model requires building a server, installing an application, and configuring it. Instead, the application resides on a remote cloud network accessed via the web or through an application programming interface or API. Businesses have the right to use them for a period of time and pay for the software they use.

Make a Profit Over a Reduced Period of Time

The software as a Service model differs from traditional models in which the software or application is already installed and configured. To benefit from SaaS, you can simply access a server for your instances in the cloud, and your software application will be ready to use in a matter of hours. This reduces installation and configuration time and decreases problems that interfere with software deployment.

Benefit from Lower Costs with the Software as a Service Model

The software as a service model is typically located in a shared or multi-tenant environment where hardware and software costs are lower than traditional models. As a result, businesses can gain beneficial cost savings. 

Another benefit is that the software as a Service model allows small businesses to use software that is otherwise unavailable due to high licensing costs, allowing them to quickly expand their customer base and scale up. Maintenance costs are also reduced because the cloud provider owns the environment, which is shared among all customers who use the solution.

Scalability and Integration

Software as service applications is typically in a cloud environment that is scalable and integrated with other SaaS products. Compared to traditional models, you don’t have to buy a separate server or software. You can simply activate a new Software as service capability and start using it immediately. In addition, you have the flexibility to expand and contract the use of SaaS to meet your specific requirements. 

Continuous Upgrades 

With the software as a service model, cloud providers update their solutions and make them available to their customers. The cost and effort of upgrades and new releases are typically less than traditional models that involve the purchase and installation of upgrade packages. They also can require the payment of special services to upgrade your environment, which can all be avoided with the software as a service model

Proof-of-Concept

The software as a service model enables users to perform proofs-of-concept and pre-test software operations or new release features. They can also create multiple instances with different versions for a smooth migration. In addition, users can adapt the software as a Service offering for large environments as well as small ones.