Recently, the SaaS industry has become one of the fastest-growing sectors in technology, especially in the last 10 years, as most of the world’s population now have 24/7 access to the internet.
If you’re hearing the term “SaaS” for the first time, this post is for you. SaaS stands for Software as a Service. But what does that mean? Let’s explore the difference between traditional software and software as a service.
1. Deployment
In the past, to acquire software for personal use, you had to buy the program on a CD and set it up on your device. For companies, the IT department had to install it on the server, provide access to employees, and explain how to use it. With SaaS, you sign up on a website, pay for it, and use it immediately because it’s hosted on the cloud or an internet server.
2. Accessibility
Previously, you needed to be physically present to use software, whether at your office or on your personal computer. However, with SaaS, you can use any device with internet access. You open the website, log in with your username and password, and you’re good to go.
3. Time-to-market
The time it takes to go live and start using the software, known as time-to-market, used to be long due to deployment processes. In the SaaS model, you can be up and running in minutes after subscribing and configuring settings for your team.
4. Pricing
Before, you had to buy software once, and it was often costly. With SaaS, you pay a subscription, either monthly or annually, which is relatively cheaper. This cost is for your monthly usage, and you can stop the subscription whenever you want.
5. Scalability
Adding new users or expanding to a new branch with the same software used to require purchasing new licenses and configuring systems. In the SaaS model, adding a new user is simple, often with an invitation sent via email, and they can start using it right away.
6. Updates
Updating software used to be a complex process with potential downtime and the need for employee training. In SaaS, users receive notifications about updates, and they can easily apply them or go through a brief tour to understand the new features.
The Pioneer
Salesforce, as a pioneer in this change, invested heavily in infrastructure and security to shift from traditional software business to the SaaS model. They emphasized data security on the cloud, changing the market’s perception and building trust among their customers.
Simply put, SaaS is software that operates on the cloud, allowing secure access from any internet-connected device, making it cost-effective. If you’re a SaaS company founder, you can sell your product globally as long as you provide support and adhere to privacy laws and security standards in the countries you’re targeting.
If you have any questions on this topic or suggestions for future discussions, feel free to leave a comment.