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What Is Software as a Service?

What Is Software as a Service?

Software as a service, often abbreviated as SaaS, is a term that you have probably seen floating around the internet. Like many technical-sounding acronyms, this term isn’t nearly as complicated as it sounds. It just represents a particular way in which software is provided to customers. The idea is not a new one, but it has definitely become more common in recent years. Because SaaS solutions are ideal for cloud deployment, such options have exploded in number. Let’s learn a little bit more about software as a service and how it works.

What Makes SaaS Unique

In the old days, you bought a piece of software in physical form and installed it on your device. Whether it came in the form of optical discs, floppy disks, or anything else, the process was always more or less the same. Of course, it has been a long time since that was the norm. These days, it is far more common for people to purchase software and then download an executable file, which then installs the purchased program on your device.

SaaS is distinctly different from these older distribution models. The biggest difference is that this software is not installed on the end device at all. Instead, it is centrally hosted by the company that owns the code. Users will then use the application through the web, much like you might use an application within your browser. Thus, you get the functionality that you need without needing to install anything and without being limited to any specific device.

Why SaaS Is Becoming More Popular

The SaaS model is becoming more popular because of changes in the way that most people use the internet. In many ways, the installation model is kind of outdated. It dates from a time when the majority of internet users were using desktop computers. These days, however, the average person is more likely to access the internet with their mobile device. Yes, a computer has certain advantages, but most people don’t carry one with them everywhere they go.

In a corporate setting, you cannot always depend on using the same devices. If you find yourself in a different location without your normal device, it can create a lot of problems. All of these factors combine to make cloud-based software much more popular. Instead of installing anything, you just log into a cloud server and all your tools are ready to go.

SaaS is also becoming more popular because cloud providers are using this model to the fullest. Special software options are some of the best “perks” that cloud providers can offer, and it’s often those little extras that make one service preferable to another. Since these programs have now become marketing points for every cloud provider, it’s no surprise that more people are using them.

Some Relevant SaaS Statistics

Right now, you might find yourself wondering if this is all just a passing trend. It certainly wouldn’t be the first time that a new tech trend went sour after a promising start. For instance, do any of you remember the zip drive? Most of you probably don’t, and that’s because it was just a flash in the pan. It was a big deal for about a year, and then it disappeared altogether.

To get an idea of where this industry is going, let’s look at some relevant statistics. They should suffice to give us a general overview of the relevant trends in this particular niche.

  • There are over 10,000 SaaS companies worldwide
  • Salesforce, the biggest of these companies, reported an income of $3.74 billion for the first quarter of 2020
  • 71% of all businesses are deploying SaaS solutions
  • The most commonly-cited reasons for using SaaS include flexibility and continuity
  • The total size of the SaaS market is in the neighborhood of $157 billion
  • The market for mobile corporate SaaS alone is expected to reach 7.4 billion by next year
  • The global workload for all SaaS servers is about 380 million
  • The healthcare SaaS market is growing at a rate of roughly 24% each year
  • At present, companies are paying about $2,884 per employee for SaaS

Are There Any Downsides To The Use Of SaaS?

There are a few downsides to be seen here, but they are quite minor. For instance, SaaS applications require a stable internet connection. Thus, if the network isn’t running properly, anyone who needs to use that cloud-based SaaS software is going to be in bad shape. However, the internet is basically an indispensable necessity for any business these days, so we don’t think that problem is a big one.

Further, when you choose an SaaS option, you are giving up a little bit of control to the software provider. They will have at least some ability to tweak and adjust things, and they could potentially look at your data. However, none of this is a big problem if you can find a trustworthy cloud provider. Do not forget that cyber criminals will sometimes infiltrate organizations like this, causing a serious insider threat.


As you can probably tell, the growth of SaaS has corresponded with the continued growth of cloud computing. Since these technologies work so well together, there is no indication that the trend will stop anytime soon. However, you can bet that there will continue to be a need for honest and affordable cloud providers who can also offer those SaaS options that their customers want. If you find yourself in need of such a provider, you can call PCH Technologies at (856) 754-7500. We look forward to hearing from you soon.