What is Software As A Service – SaaS?

You may already hear  “software as a service” or mostly its abbreviation  SaaS.

If we try to define software as a service, we can say it is a software licensing and delivery model that uses subscription licensing and central hosting. There are also some more names for SaaS, like:

  • On-demand software 
  • Web-based/Web-hosted software

We used to have to buy local software and use it locally when we required software. Now, thanks to cloud computing technology, many software applications can be accessed from any computer or mobile device through a web interface. There are many categories of cloud computing, and SaaS is just one of them.

Cloud Computing and SaaS

Some of the Cloud Computing categories:

  • Infrastructure as a service (IaaS), 
  • Desktop as a service (DaaS),
  • Software as a service (SaaS)
  • Mmobile backend as a service (MBaaS), 
  • Managed software as a service (MSaaS),
  • Integration platform as a service (iPaaS),
  • Platform as a service (PaaS), 
  • Information technology management as a service (ITMaaS) 
  • Datacenter as a service (DCaaS),

Outsourcing software, infrastructure, and applications are referred to as Software as a Service (SaaS). By purchasing a SaaS system, which is an online, landing-page-based system, you can save time, and money, and hire a designer or developer instead.

Using a cloud service provider, applications are hosted online and made accessible using a web browser by end users through the software as a service (SaaS). In Short, it is a cloud-based service where you can access the application via an internet browser instead of downloading software to your computer to run an application.

How Does SaaS Work?

The cloud delivery model is used for SaaS. A software provider can host the program and data on their servers or hire a cloud provider to host the app in data centers where this second option is the most used model. 

The setup and maintenance of SaaS applications are therefore not the responsibility of businesses that use them. Instead, users just pay a monthly/yearly fee to access the application, which is a fully working, ready-made solution.

Companies can connect SaaS applications with web browsers or Application Programming Interfaces (APIs).

software as a service

SaaS Architecture

The first step in understanding a multitenant architecture model is identifying the differences between single-tenant and multi-tenant architectures.

A single-tenant (Vertical SaaS)

SaaS vertical architectures (or silos) come with their own infrastructure, hardware, and software environments for each application. The SaaS application or corporation needs to be single-tenant if you have ten different organizations and ten separate environments.

Multi-tenant (Horizontal SaaS)

A horizontal SaaS architecture is an environment or model in which multiple tenants are served by a single environment that has the capability of being scalable, available, and resilient.

Multi-tenant model is mostly used in SaaS applications. Cloud multi-tenants allow more resources to be available for a larger group of users without compromising important cloud functions such as privacy, security, and speed.

With multi-tenancy, more users may share resources without compromising on crucial cloud features such as speed, privacy, and security.

SaaS Advantages

Computers and data centers no longer require the installation and maintenance of software. With the use of Saas, not only software licensing, installation, and support but also hardware purchase, configuration, and upkeeping, are all gone.

Some of The Advantages of Saas:

  • Cost Saving
  • Security
  • Instant Access
  • Scalable
  • Quick Update
  • Reduced Costs
  • No Hardware Installation

SaaS Companies

Due to the SaaS business model’s dependable recurring revenues, most software vendors are shifting to it more frequently. In addition, the adaptability of on-demand scalability and pay-as-you-go effectiveness benefits customers as well.

In the SaaS market, you can find a wide variety of software companies and solutions. Here is the list  of some well-known SaaS services:

    • Salesforce
    • Atlassian
    • Adobe
    • Freshworks
    • Zoho
    • ServiceNow
    • Snowflake


SaaS may deliver significant cost reductions for a variety of reasons. For starters, it removes the initial cost of purchase/installation as well as ongoing fees such as maintenance and updates. SaaS apps, rather than investing enormous sums of money on hardware installations, may be readily downloaded and maintained.

As a solution partner, Nioyatech provides software development and SaaS with a comprehensive Agile Methodology service and adheres to a series of flexible and adaptive methods, ongoing technical progress, and client contact.