What is SaaS? A Complete Guide to Cloud Software

Cloud computing is not a new-fangled term but rather has been around the corner since 1950. Over the years, it has gained the potential strength to come to the mainframe and dominate the rest.

Earlier, business organizations used servers to process their business operations and manage the storage. Now, the cloud software is in the picture and companies are shifting their businesses to the cloud at the drop of a hat.

Gartner forecasts that the spending on public cloud services will hit $396 billion in 2021 and exceed $482 billion by the end of 2022.

While talking about cloud software, one can not overlook discussing SaaS, PaaS, and IaaS, the three major components of the cloud. Among these three cloud components, SaaS beats the rest.

So, what is SaaS?

Let's dive in.

What is SaaS?

By now, nearly every tech-savvy person understands what is SaaS? Whether being aware of the meaning of SaaS and how it functions or not, many people use SaaS daily.

Being the largest segment in the cloud technology sphere, SaaS is the talk of the world.

• As per BMC, by the end of 2021, nearly 90% of business organizations across the globe will be using SaaS.
• Gartner reports the SaaS market will reach $117.7 billion in 2021.

Earlier, computers came with disc drives to install new software. For a new software installation, users used to search for Best Buy or Office Max.

Nowadays, hardly any laptop comes with a disc drive.

Why?

Well, the reason is SaaS.

That's enough for the acronym.

Now, let’s check out what is the full form of SaaS?

What is the full form of SaaS? 

SaaS or Software as a Service is a significant element of cloud computing. On a basis of subscription, SaaS delivers software applications via the internet. Since the cloud provider hosts the software, the maintenance and upgrade become a piece of the cake!

Between The Numbers

Forbes reports,

• In 2019, SaaS revenue was $171million. 
  
• In 2020, the revenue hit $200billion.
• By the end of 2022, the global SaaS revenue will reach $233billion.
• By 2024, SaaS will consume the global business world. The revenue will grow at $369.4 billion.

SaaS market will grow at an overwhelming pace. According to KBV research specialists:

• The global SaaS market will reach $185.8billion by 2024.

What Is Meant by Software as a Service?

SaaS is one of the three main components of cloud computing. It is a software distribution model, allowing a third-party provider to host software applications so that the end-users get access to the applications through subscriptions.

From business enterprises, IT professionals to personal users, all use SaaS applications for personal entertainment like Netflix to deploying advanced IT tools. Unlike IaaS and PaaS, the other two cloud components, SaaS or Software as a service, is beneficial to both B2B and B2C users.

Why Are Business Enterprises Shifting to SaaS?

Easy Deployment

SaaS applications are installed in the cloud. Unlike conventional software installation, users can easily install and configure SaaS software applications. Once the development process has to an end, the software becomes ready to eat.

Seamless Integration

You are searching for answers to what is SaaS? Obviously to run your entire business operation seamlessly.

Well, let's enumerate the benefits by considering the answer again - what is SaaS or What is meant by Software as a Service? 

SaaS is the one-stop solution to unite your business operations. With SaaS cloud computing you can easily integrate all of your software applications with one another. The APIs, available with SaaS, is effective not only for internal software integration. It is also crucial for the software offered by SaaS.

Scalability

While jumping on the cloud, every business enterprise, from small to large, all look out for scalability.

The scalability of SaaS applications is beyond any doubt. Users need not worry about the software usage or the growth of the user base.

The business SaaS model comes with extra storage space or bandwidth. Whenever there is a need for additional user licenses, the user can easily obtain a new user ID and password. The user does not require to buy additional physical software.

Cost-Effective

From the initial setup cost to the ongoing fees, SaaS applications are cost-saving.

Since SaaS is a subscription-oriented cloud computing service, SaaS applications demand no up-front license fees. If you enjoy the paramount privilege of SaaS, the price will go high; if the user uses SaaS less, the price will fall.

Hope it is clear now, What Is Meant by Software as a Service?

As per the reports from Super Office, business grows by 19.63% once it gets shifted to the cloud.

Cloud migration is not a task that is done in the spur of the moment, but once it gets done, your business will become sustainable and manage competition more flexibly. SaaS is the dominant and most effective cloud model. It brings explosive opportunities to companies to take their business process, customer relationship, and revenues sky-high.

The objective of writing this blog was to make our readers conversant with the concepts of what is SaaS? what is the full form of SaaS? and what is meant by software as a service?

EDIIIE is, among other things, a SaaS software development company, standing on the pillars of advanced technologies like Augmented Reality, Virtual Reality solutions, and Mixed Reality solutions, helps companies to modernize, manage, and optimize their cloud solutions to build agile, scalable, and consolidated business processes.

Let EDIIIE help you out with your cloud software requirements.