SaaS, or Software as a Service, is widely regarded as the most popular type of cloud computing service. While the term may still sound unfamiliar to some, chances are we’ve already used its services—perhaps even frequently—to support our daily activities.
In the business world, SaaS has become almost indispensable. Its usage helps minimize device maintenance and operational costs, making it an appealing solution for companies looking to enhance their business applications.
Previously, we explored Infrastructure as a Service (IaaS). Now, let’s dive deeper into the ins and outs of SaaS, particularly its advantages and benefits for business development.
A Brief History of Software as a Service (SaaS)
Although computers have existed since the 1960s, their data processing capabilities back then required significant time. With the help of the Massachusetts Institute of Technology (MIT), one of the world's leading technological universities, the first SaaS, known as the Compatible Time-Sharing System (CTSS), was introduced. This system not only reduced computer costs but also significantly improved performance speed.
Another key milestone was the emergence of the dot-com era around 1994. Netscape Navigator introduced the Secure Sockets Layer (SSL) protocol, enabling encrypted data transmission over the internet. This allowed customers to shop online without fear of losing personal data, paving the way for the development of online marketplaces now dominated by companies like Amazon.
The Customer Relationship Management (CRM) service from Salesforce.com marked a turning point in SaaS's resurgence around 2000. By 2005, SaaS gained more recognition through platforms created by NetSuite, Veeva, SAP SuccessFactors, and Ariba. In 2016, Autodesk gradually phased out perpetual licenses for most of its products, shifting to subscription-based software solutions. In early 2020, ACADS-BSG launched an online Support Desk System via a website, rapidly modernizing support systems.
Over more than three decades, computers have continued to evolve—becoming faster, cheaper, and smaller—encouraging businesses to transition from manual processes to more automated practices. This progression spurred the concept of "ownership" of personal computers, combining paid, downloadable local software to handle various tasks.
What is Software as a Service (SaaS)?
As the name suggests, SaaS platforms allow software to be accessed and used via the internet, typically through a monthly subscription fee.
With SaaS, there’s no need to install or run applications on individual devices. Everything is accessible online through a web browser as long as you’re connected to your account. Generally, you can use the software from any device, anytime, as long as the internet connection is secure.
This setup applies to all users of the same software. In an office setting, each employee has a personal account with login credentials tailored to their specific access level. You don’t need to involve IT specialists to download the software on every employee's computer or worry about updating the software on each device. Everything is managed in the cloud.
Another key difference lies in the business model. When it comes to pricing, SaaS providers sell their software through an inclusive monthly subscription model. Most subscription fees cover maintenance, compliance, and security services—which would otherwise be time-consuming and expensive to handle in-house.
For larger enterprises, SaaS vendors also offer appealing service packages that are easy to implement. Basic software can be activated and operational within hours, and you also gain access to customer service and support.
What Triggered the Emergence of SaaS?
Remember when we had to visit a computer store to purchase the latest software CDs? This necessity of buying physical software created several issues for businesses, such as:
Security Issue
One of the main drawbacks of physical software was its security. Many software CDs were compatible only with specific operating systems. Even after upgrading their OS, many companies continued using the same software, leading to potential security vulnerabilities. SaaS, on the other hand, offers the advantage of continuous upgrades, and users don’t need to manually update the software themselves.
Cost
When companies first purchased physical software, they had to buy entire software packages, which often came with a hefty price tag. SaaS, in contrast, is more cost-effective and always provides the latest version of the software. Before the subscription-based SaaS model was introduced, many small and medium-sized businesses (SMBs) lacked the budget to purchase software CD packages.
Lack of Scalability
SaaS is scalable and can be adjusted based on a business's needs. It allows employees across various departments to access the software without requiring additional purchases. SaaS can scale up or down depending on a business’s growth or downsizing, offering a flexibility that traditional software simply couldn’t achieve.
What Are the Advantages of SaaS?
Now is the time to consider how SaaS can simplify your business operations and the benefits it offers. Below are some key advantages of using Software as a Service:
Cost-Effective
Most SaaS services are hosted on cloud platforms connected to the internet and used to run applications accessible via the web.
This allows SaaS providers to offer their software in real-time, enabling users to access it from anywhere with a secure internet connection. This eliminates the need for corporate users to purchase or install software directly on each employee's computer, significantly reducing the costs and time required to manage applications.
Easily Scalable
SaaS services make it easy for corporate customers to adjust (add or reduce) the number of users or features according to their needs. This benefit improves the efficiency of IT spending for businesses.
Simple Installation
Do you remember the days when installing software was a long and complicated task? Today, SaaS is incredibly easy to install. Since it is hosted in the cloud, delays can be minimized, and installation time on each office computer is significantly reduced.
Easy Access
To use SaaS, all you need is an internet connection and a web browser, making it accessible from anywhere. This flexibility allows SaaS to be available in most countries worldwide, provided there are no government restrictions on internet access. In the post-pandemic era, where work-from-home or even work-from-anywhere has become a preferred option for job seekers, SaaS is ideal for companies that allow remote work.
Automatic Upgrades
Application development requires regular maintenance and upgrades. Maintenance is necessary to ensure performance and security, as well as to fix bugs or other issues. Upgrades keep features up-to-date, enabling the software to remain relevant over time.
Traditional software CDs lack automatic maintenance and upgrade capabilities, often requiring users to replace physical software whenever the operating system changes. SaaS, on the other hand, typically includes automatic maintenance and updates, freeing users from hassle and additional costs.
Trial Before Subscription
One of the biggest benefits offered by many SaaS providers is the ability for users to test the software’s functionality or try new features before committing to a subscription plan.
Seamless Integration
In many cases, SaaS models can be integrated with other systems and applications, making it easier for users to manage data and business processes efficiently.
For example, with SaaS, a company can integrate CRM services with payment processing systems or other project management tools to manage customer data and other business processes seamlessly.
The Future of Software as a Service (SaaS)
Most software is now shifting to a cloud-based subscription model, making the future of SaaS look bright. Interestingly, the COVID-19 pandemic did not slow down SaaS development—instead, it accelerated growth. This progress is supported by more reliable global internet speeds, driving several future trends that influence SaaS development, including:
- Artificial Intelligence (AI)
- Machine Learning
- Centralized Analytics
- Migration to PaaS
- Micro-SaaS
- Enhanced Mobile Optimization
- Low-Code Capabilities
- Vertical SaaS
- The Growing Need for API Connections
These trends are likely to shape the future of SaaS over the coming years. This cloud computing service model remains a top choice for startups and SMBs.
SaaS Solutions Available at CBNCloud
We offer several SaaS services to enhance your business productivity. A variety of subscription packages are available to suit your needs.
Microsoft Office 365
Microsoft Office 365 provides productivity applications such as Microsoft Teams, Word, Excel, PowerPoint, Outlook, OneDrive, and more. Several subscription packages are available for you to choose from based on your requirements.
Google Workspace
Similar to Microsoft 365, Google Workspace is a productivity platform from Google that offers business applications like Gmail, Google Drive, Google Calendar, and Google Docs.
Acronis
Acronis is a platform offering security-focused applications like Cyber Protect Home Office, Cyber Protect Cloud, Acronis Cyber Cloud, and Cyber Protect Connect. With its support, CBNCloud has developed Cyber Backup and Cyber Protect services as all-in-one cybersecurity solutions. These integrate backup and recovery, disaster recovery, malware prevention, security controls, remote assistance, monitoring, and reporting.
SpamTitan
In the realm of email security and anti-spam software, SpamTitan is a top player. CBNCloud Enterprise Email Security, powered by SpamTitan technology, provides robust email security to protect against various email-based threats.
In addition to the four solutions above, we also offer other SaaS-based services to support your business growth. Feel free to contact the CBNCloud Sales Team for consultations or to select the most suitable package for your current needs.
Experience the ease of digital transformation with CBNCloud—optimized to simplify your life.