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SaaS: Everything You Need To Know About Software As A Service
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SaaS: Everything You Need To Know About Software As A Service
Presented By
Black Pearl Matrix
Using Software as a Service (SaaS) could bring benefits
- Reduction and customization of time
- Greater adaptability
- Low initial cost
- “Painless” updates
- Reduction of technical resources
You’ve probably used cloud computing and some SaaS in your personal or professional routine and know some tools related to this technology.
As these solutions tend to grow and gain even more market share, we decided to prepare a very complete article to better explain what Software as a Service (SaaS) is, its benefits, the differences between other models, the necessary infrastructure and other issues. . Curiosity hit and you want to know more about it? So stay with us and check it out below!
What is SaaS?
SaaS is the acronym for Software as a Service. In this model, the system is not marketed as a product, but as a service, as its name suggests. Thus, no program is installed on your equipment and the applications are used over the internet.
There are free versions (such as Gmail) and paid versions (such as Office 365), which cater to personal and professional routines. This means that companies can now rely on cloud management systems and a customized solution, according to business needs.
Once purchased, the software can be used from anywhere, at any time, through various gadgets computers, notebooks, tablets and smartphones, for example as long as you have internet access. In addition, it is worth remembering that, in this way, the customer pays for the subscription to the service offered (access) and not for a product, which eliminates the cost of acquiring licenses.
Therefore, we can say that a SaaS solution meets the most varied objectives, from simple use as a personal email to the possibility of managing a company’s operations, such as ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management) systems.
Among the main examples of SaaS available and most popular, we can mention:
• Dropbox;
• Google Drive;
• Salesforce;
• Google Analytics;
• Zendesk;
• Netflix;
• PayPal.
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Advantages of SaaS
Companies that provide SaaS solutions have gained more and more prominence, mainly due to the benefits they provide for companies of different niches and sizes. In the following topics, we will talk more about these advantages.
1- Cost Reduction
As with SaaS, the contractor does not need to pay for an acquired license, paying only for a monthly subscription or for the services he actually uses, the cost of investing in technology becomes lower. In addition, the amounts paid are predictable, which helps to improve financial planning in the medium and long term as well.
2- No Need for a Complex Infrastructure
The system is hosted in the cloud, which considerably reduces the need for infrastructure. That is, this technology eliminates investment in servers, maintenance and direct IT staff, among other resources that would be necessary to ensure the proper functioning of the tools.
So you can save space and money, while worrying about upgrades, backups, hardware, and so on passes to the service provider.
3- Focus on the Core Business
When you hire SaaS and stop worrying about infrastructure-related activities, attention and investments can be directed to the company’s core business, increasing the chances of more satisfactory results.
4- Remote Access
As the system is hosted in the cloud, it can be accessed anytime, anywhere. This is especially important in cases where you are dealing with external teams or with professionals who work during the trip. Thus, by having access to a computer and the internet, the company gains in mobility and provides greater practicality and agility in the execution of tasks.
5- Ease of Update
Updates and improvements are the responsibility of the supplier company, and the main advantage of this is that it is not necessary to download any application or even a new installation. Upgrades are done in the cloud, without hampering operations.
What is the Difference Between SaaS, PaaS and IaaS?
In addition to SaaS, there are other acronyms that also involve the provision of technological resources as a service through cloud computing. We will explain each one of them in the following topics.
1- SaaS-Software as a Service
As we know by now, SaaS is a software model sold as a service and is not tied to the acquisition of licenses. Payment can be made through subscriptions or according to the services actually used.
As it is a more flexible model, it is possible to acquire and better control the necessary functionalities, and this is one of the reasons why the system costs less for the company. A good example of this are the packages or plans offered, from the simplest to the most complete, each one seeking to meet the different demands of different businesses, with prices varying from one to another.
The main features of SaaS:
• Access to the software is entirely via the internet;
• Corrections and updates are made by the system vendor;
• Possibility of external integrations through APIs, or Application Programming Interface;
• Pay per use, not per license;
• Centralized application management.
2- PaaS Platform as a Service
This model is like a middle ground between SaaS and IaaS and provides a cloud environment that allows the development and deployment of simple applications as well as more complex enterprise software. The required resources can be purchased through a service provider hosted in the cloud and accessed over the internet.
As in the case of IaaS, Platform as a Service (PaaS) provides infrastructure, such as servers, networks and storage, but also provides development tools, BI (Business Intelligence), database management systems, among others.
The purpose of this model is to fully support the application, from the construction phase to periodic updates. It avoids expenses with purchasing licenses, in addition to other resources. In this way, the company is responsible for managing the services and applications, and the contracted provider manages the rest.
Ultimately, PaaS provides a flexible yet robust enough platform for organizations to develop their own applications based on language, framework or any other technology. In addition, it allows the use of an adequate infrastructure for the applications. Microsoft Azure is an excellent example of how this type of service works.
Key Features of PaaS:
• Offers scalability at all stages of development;
• Integration with databases and web services;
• Integrated security;
• Favorable environment for test development routines and implementation of developed solutions.
In the end, we can say that the differences between SaaS and PaaS are small. To summarize, in the first case, the applications are provided in the cloud, while in the second, the platform on which the applications will be developed and made available in the cloud is provided.
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3- IaaS-Infrastructure as a Service
IaaS was formerly known as HaaS or Hardware as a Service. In it, instead of your company needing to invest in the acquisition of infrastructure items, such as routers, servers, racks, among others, hiring is done through services, with virtual servers.
Here, the charge is made considering the use of certain points, such as the number of virtual servers contracted, the amount of data stored, the amount of data transferred, among others. An excellent example of this model is IBM.
As in the case of SaaS, payment can be made through subscriptions or for the service used (pay-per-use). That is, if in a month your company uses 5 servers and in the following month it needs to use only 3, the amount paid will also decrease, as the need has been reduced.
Key Features of IaaS:
• The cost may vary according to use (depending on the contract signed);
• The infrastructure is contracted as a service, not as a product;
• High scalability.
IaaS Ratings
IaaS has 3 distinct classifications, they are:
1- Public Cloud
In this case, the infrastructure is made available through internet access with shared resources.
2- Private Cloud
It has the same characteristics as the public cloud. However, the environment is a private network, which is usually located in the company’s own datacenter. In this case, only the organization’s servers have access to them, ensuring a higher level of privacy and security.
3- Hybrid Cloud
Hybrid cloud is a combination of public and private clouds, offering the best of both.
Better Understand the Scope of Each Model
Considering some basic criteria, we will better explain the scope of the models in each of these aspects:
• Physical plant of the datacenter: IaaS, PaaS and SaaS;
• Network security: IaaS, PaaS and SaaS;
• Servers and data storage: IaaS, PaaS and SaaS;
• Operating systems: PaaS and SaaS;
• Development tools, database and analysis: PaaS and SaaS;
• Hosted Applications: SaaS.
How Do You Know If Your Software is a Product or a Service?
Software as a Service provides some technology that is paid for on a regular basis, which can be monthly, annual or other forms of payment. SaaP (Software as a Product) is sold by purchasing a license and in some cases there is still a fixed price.
The main difference between the two situations is precisely the license, which is considered a product. From the point of view of the Federal Revenue, in SaaS, the contractor pays only a fee, resulting from the use of the software, which makes it a service.
Differences from the Legal Point of View
When payment is made through fees, monthly fees or any other way that guarantees the use of the software, the sale is considered a service and, therefore, the difference between SaaS and SaaP (Software as a Product) is reflected in the charging of taxes.
Thus, SaaS, as a service, is subject to the Tax on Services of Any Nature (ISS). The rate of this tax, according to the law, cannot exceed 5% of the invoice amount.
On the other hand, SaaP charges Tax on Circulation of Goods and Services, a rate that can reach up to 18% depending on the state.
Thus, it can be said that, from the supplier’s point of view, offering software as a service is more advantageous than as a product. However, it is necessary to pay attention to the way the contract is signed, so that the charge is adequate and the company is not subject to fines and other sanctions.
From the contractor’s point of view, this difference is reflected in the price of the contracted system, which ends up being lower in SaaS. This is a factor that contributes even more so that the technology becomes more accessible to small and medium-sized companies while in traditional systems, due to the high cost, the implementation is more restricted to large organizations, due to budgetary issues.
Another point that can help in differentiating between products and services is to evaluate the level of customization adopted in the sales made. If the software is offered according to the specific needs of each client and the supplier is responsible for the hardware structure (which guarantees the functioning of the system), it is very likely to be a SaaS.
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What Do You Need to Know to Work with SaaS?
Because it is a relatively new technology, software hosted in the cloud can still generate some distrust in managers. In addition to the advantages that SaaS can provide for the company, we will clarify other points about the system in the following topics.
1- How to Choose the Best Solution?
Before implementing a cloud system, it is necessary to know your business well and what your needs are. In addition, intensive work with the HR team is also required to deal with the resistance to change that employees may present.
In order to choose a suitable application, it is necessary to know if the offered solution fits the business requirements and work processes. Identify the main processes and which flows need to be addressed by implementing the system.
2- Meet the Suppliers
Try to get a quote from at least 3 vendors, this helps you to identify which solution best fits your business needs. In addition, market research, references from other clients and knowing the developer company well are some of the points that must be taken into account.
3- Identify the Customization Possibility
Knowing your business, it is very likely that when negotiating a software, you will identify the customization needs so that the functionalities really meet your work methods. See if the provider allows the modification of some parameters and allows the customization of some functions and the users’ access level.
4- See what kind of support the provider offers
This is one of the most important aspects, as it deals with the supplier’s attitude when the system fails. The support provided must be explicit in the contract and must contain information on how to deal with the most routine situations, such as a simple call for a major unforeseen event.
Therefore, some questions must be addressed, such as:
• Is support in US territory?
• How will the call be answered?
• What is the average response time?
• What is the problem identification and resolution model?
5- How to Acquire and Implement?
Once the service provider has been chosen and the solution contracted, implementation is simple. In many cases, access is immediate and via login with username and password.
6- What is Really Paid by the Company?
Only the service that was contracted, that is, the plan that can be monthly, half-yearly, annual, among others agreed with the provider. Furthermore, all other technical aspects such as support and updating are the responsibility of the vendor.
7- Will the Data be Safe?
This is one of the main concerns related to SaaS, mainly because the system is hosted in the cloud and access is via the internet. However, service providers ensure data security, which is mostly done through encryption.
In addition, there is still the issue of access via username and password, with the supplier being responsible for backing up the information. The big advantage of this is that this work is no longer done by your IT team, who can focus on other more strategic issues.
8- If the Company Grows, Do You Need to Change the System?
Many solutions available on the market offer scalability. This means that, as your business grows, the system has the flexibility to adapt to greater demands and even to update and provide new features, which can happen when you go from a basic plan to a master, for example.
9- Is There Any Guarantee of Software Availability?
Despite the possibility of unforeseen occurrences in any operation, there is a risk of the system becoming inoperative, but your company will always be protected in these situations when a Service Level Agreement (SLA) is signed.
This means that if the supplier undertakes to deliver a high SLA, it is a sign that the software is stable, transmitting greater reliability to the service.
10- Can Access and Security Levels Be Adopted?
Yes, this is especially important when there is a clear definition of information security, that is, each hierarchical level receives a type of access. In addition, departments and branches will also have access as defined by the IT team.
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11- Where is the Data Stored?
There is a possibility that the servers are in your country or located abroad. Internet Law does not determine that data must be stored in your country, but it mentions that, regardless of where the server is located, it must comply with the laws of your Country.
This law also requires that records be kept for at least one year if the courts request the information. If your company’s field of activity has specific legislation, the ideal is to consult the legal department to find out about any obligations when choosing the application.
12- What Infrastructure is Required?
From the provider’s point of view, there is the responsibility of managing the hardware infrastructure such as servers, platforms and applications and ensuring the availability of the contractor’s software and data.
From the customer’s point of view, the only infrastructure needed to implement the system is the use of computers and access to a quality internet service. This is one of the reasons why this model is called Software as a Service, since several services are aggregated in order to simplify the contractor’s routine as much as possible.
Thus, the user does not pay more to acquire the tool, and the cost and time of implementation are reduced when compared to traditional systems.
FAQ – Frequently Asked Questions About SaaS
1. How to implement SaaS?
2. What is a B2B SaaS?
3. What are the differentials of SaaS?
4. What describes the relationship between corporate platforms and the cloud?
5. What is the difference between SaaS and Cloud?
Conclusion
As we can see, Software as a Service is a system model that is hosted in the cloud. Due to several factors, the acquisition cost has become lower, allowing several businesses to have the opportunity to automate their routines and take advantage of the benefits that the investment in technology brings to the organization.
Due to the lower cost and the other qualities that SaaS offers, it can be said that the trend is for companies to adhere more and more to this technology, adhering to the digital transformation. From the developers’ point of view, it is a promising option, with the possibility of closing several deals.
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