How does SaaS work?

SaaS is in close connection with ASP (application service provider) and Application service delivery models for on-demand software services. The business model for hosted SaaS applications is consistent with that of ASP. In general, the provider hosts the client software and delivers it to end-users via the Internet.

With the on-demand software model, the provider provides customers with network access to a single copy of an application created specifically by the provider for distribution of the software as a service. The source code of the application is the same for all customers. When newly deployed features are implemented, all customers can take advantage of them.

Depending on the level of service, customer data can be stored locally, in the cloud, or both. Enterprises can integrate applications with other software using APIs. For example, an enterprise can develop its own software tools and use the service provider’s API to integrate those tools into the offering.

What are SaaS applications?

There are SaaS applications for core technologies such as email, sales management, customer relationship management (CRM), financial management, human resource management, billing, and collaboration. We should not forget the appearance of this SaaS application model in video games (Gaming as a service) and especially in the Internet of Things, that relies on this software platform to organize the data collected from thousands of sensors.

Why is SaaS now accessible to everyone?

Over the last 10 years, the SaaS market has changed a lot. In the beginning, no one was really sure about the relevance of this model. No one was sure that companies would pay a subscription fee to access the software, and banks were afraid of the risks.

Nowadays, this lack of certainty has completely disappeared. As well, prices have come down and implementation is much easier. However, to stand out in the SaaS market, it is always necessary to offer quality software at a good price.

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