SaaS is defined as the software distribution model deployed on the internet in which a cloud service provider provides applications. It is also known as "on-demand software" or "pay-as-you-go application". Here the customer licenses their product via SaaS-providers. SaaS market is a rapid-growing one, and with this fast-growing service, SaaS will soon become an active cloud service technology for every organization and company. So it's important to understand those users and or buyers the usage of SaaS and why it is suitable.

In SaaS, the software & the applications associated with it are centrally located on the cloud server. Users can access them via a thin client connecting application, i.e., using a web browser.

The SaaS provides various applications such as:

  • CRM applications
  • Solution to Human Resource (HR)
  • Pre-existing Billing & Invoicing systems
  • Other daily usable application suites

There are various advantages and disadvantages of SaaS. The advantages are:

  • Easy to buy: SaaS's cost is based on monthly or yearly fees allowing new organizations to access the world of business at a low-cost, at least lesser than licensed application.
  • Minimization of Hardware Requirement: All SaaS software is hosted remotely & so there is no or lesser need for hardware for the organizations.
  • Special Software: No special software versions are required, as all the users will use the same software version. SaaS reduces IT costs by outsourcing hardware & software maintenance.
  • Low Maintenance: SaaS removes the daily problem of installing, maintaining, and updating software. The set-up cost of SaaS is also less in comparison to enterprise software.

Disadvantages are also the points that users and vendors must keep in mind while using the SaaS:

  • Latency factor: comes due to a variable distance of data between the cloud & the end-user, and hence a possibility of latency may arise while interacting with applications.
  • Internet Connection: is a major issue. Without an internet connection, SaaS applications are unusable.
  • Switching between SaaS vendors in case of any change is very difficult.
  • The SaaS cloud service is not very secure as in-house deployment.

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