Software As A Services

Course Instructor
Hina Sattar
What is software as a service

 Software as a service (SaaS) is a software distribution model in

which a cloud provider hosts applications and makes them available
to end users over the internet. In this model, an independent
software vendor (ISV) may contract a third-party cloud provider to
host the application. Or, with larger companies, such as Microsoft,
the cloud provider might also be the software vendor.
Categories

 SaaS is one of three main categories of cloud

computing,alongside infrastructure as a service (IaaS) and
platform as a service (PaaS). A range of IT professionals,
business users and personal users use SaaS applications
How does software as a service work?

 SaaS works through the cloud delivery model. A software

provider will either host the application and related data using its
own servers, databases, networking and computing resources, or
it may be an ISV that contracts a cloud provider to host the
application in the provider's data center. The application will be
accessible to any device with a network connection. SaaS
applications are typically accessed via web browsers
On Demanding Computing

 SaaS is closely related to the application service provider (ASP)

and on-demand computing software delivery models where the
provider hosts the customer's software and delivers it to
approved end users over the internet.
SaaS architecture

 SaaS applications and services typically use a multi-tenant

approach, which means a single instance of the SaaS
application will be running on the host servers, and that single
instance will serve each subscribing customer or cloud tenant.
The application will run on a single version and configuration
across all customers, or tenants. Though different subscribing
customers will run on the same cloud instance with a common
infrastructure and platform, the data from different customers
will still be segregated.
What are the advantages of SaaS?

 SaaS removes the need for organizations to install and run

applications on their own computers or in their own data centers.
This eliminates the expense of hardware acquisition, provisioning
and maintenance, as well as software licensing, installation and
support. Other benefits of the SaaS model include:
Flexible payments.

 Rather than purchasing software to install, or additional

hardware to support it, customers subscribe to a SaaS offering.
Transitioning costs to a recurring operating expense allows many
businesses to exercise better and more predictable budgeting.
Users can also terminate SaaS offerings at any time to stop those
recurring costs.
Scalable usage

 Cloud services like SaaS offer high Vertical scalability, which

gives customers the option to access more or fewer services or
features on demand.
Automatic updates

 Rather than purchasing new software, customers can rely on a

SaaS provider to automatically perform updates and
patch management. This further reduces the burden on in-house IT
staff.
Accessibility and persistence

 Since SaaS vendors deliver applications over the internet, users

can access them from any internet-enabled device and location.
Customization
 SaaS applications are often customizable and can be integrated with
other business applications, especially across applications from a
common software provider.
challenges and risks of SaaS

 SaaS also poses some potential risks and challenges, as

businesses must rely on outside vendors to provide the software,
keep that software up and running, track and report accurate
billing and facilitate a secure environment for the business's
data.
Issues beyond customer control

 Issues can arise when providers experience service disruptions,

impose unwanted changes to service offerings or experience a
security breach -- all of which can have a profound effect on the
customers' ability to use the SaaS offering. To proactively
mitigate these issues, customers should understand their SaaS
provider's SLA and make sure it is enforced.
Customers lose control over versioning

 If the provider adopts a new version of an application, it will roll

out to all of its customers, regardless of whether or not the
customer wants the newer version. This may require the
organization to provide extra time and resources for training
Difficulty switching vendors

 As with using any cloud service provider, switching vendors can

be difficult. To switch vendors, customers must migrate very large
amounts of data. Furthermore, some vendors use proprietary
technologies and data types, which can further complicate customer
data transfer between different cloud providers. Vendor lock-in is
when a customer cannot easily transition between service providers
due to these conditions.
Security

 Cloud security is often cited as a significant challenge for SaaS

applications.
SaaS security and privacy

 The cybersecurity risks associated with software as a service are

different from those associated with traditional software. With
traditional software, the software vendor is responsible for
eliminating code-based vulnerabilities, while the user is responsible
for running the software on a secure infrastructure and network. As a
result, security is more the responsibility of the independent
software vendor and third-party cloud provider.
SaaS vs. IaaS vs. PaaS

 SaaS is one of the three major cloud service models, along

with IaaS and PaaS. All three models involve cloud providers
that deliver their own hosted data center resources to
customers over the internet.
SaaS

 SaaS application users do not have to download software,

manage any existing IT infrastructures or deal with any
aspect of the software management. Vendors handle
maintenance, upgrades, support, security and all other
aspects of managing the software.
IaaS

 IaaS is used by companies that want to outsource their data

center and computer resources to a cloud provider. IaaS providers
host infrastructure components such as servers, storage,
networking hardware and virtualization resources. Customer
organizations using IaaS services must still manage their data
use, applications and operating systems (OSes).
PaaS
 PaaS provides a framework of resources for an organization's in-
house developers. This hosted platform enables developers to create
customized applications. The vendor manages the data center
resources that support the tools. Customer organizations using PaaS
services do not have to manage their OSes, but must manage
applications and data use.
SaaS vendors and examples

 The SaaS market includes a variety of software vendors and

products.
 SaaS products may be primarily marketed to B2B, B2C markets
or both. Examples of popular SaaS products include:
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 Salesforce
 Google Workspace apps
 Microsoft 365
 HubSpot
 Trello
 Netflix
 Zoom
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 Zendesk
 DocuSign
 Slack
 Adobe Creative Cloud
 Shopify
 Mailchimp
SaaS pricing

 Generally, using a SaaS product is more cost-effective than a

traditional software license for enterprise software, as setup
and installation onto hardware are not necessary. SaaS
providers typically use one of many subscription-based
pricing models for customers.
Free, or ad-based.

 A service may be free for users, with the SaaS provider

generating revenue through selling advertisement space. In
this model, there is typically an option to upgrade to a paid
tier that doesn't include intrusive ads.
Flat rate

 Customers are granted access to the software's full suite

of features for a fixed monthly or annual subscription
fee.
Per user
 Pricing is determined by how many people will be using
the service for each subscription. There is a fixed price
for every user.
Per active user

 This incorporates aspects of the "per-user" and "pay-as-

you- go" strategies. Subscribers are billed per user, but
only if the user has been actively using the service beyond
a defined threshold.
Feature-based tiers

 Price tiers are determined by the amount of features the subscriber

seeks. In this model, reduced versions of the software with limited
features are available for a lower price than the maximum
functionality tier. Additional feature tiers in between the minimum
and maximum functionality tiers may also exist.