SaaS: Advantages and Disadvantages of Software as a Service

This article explores the pros and cons of SaaS (Software as a Service), providing a comprehensive overview of its benefits and drawbacks.

What is SaaS?

Introduction: SaaS allows users to access specific applications online, effectively providing software applications as a service to end users. In this model, software is deployed on a hosted service and accessed via the internet.

Examples of SaaS applications:

• Billing and Invoicing systems
• CRM (Customer Relationship Management) apps
• Help Desk apps
• HR (Human Resource) solutions

Figure 1: Tasks performed by SaaS

Figure 2: Application example of SaaS

Examples of SaaS vendors:

• SalesForce
• Oracle
• SAP
• Intuit
• Microsoft
• Google
• Postini
• Facebook
• Netsuite

Benefits or Advantages of SaaS

Here’s a breakdown of the key advantages of using a SaaS model:

• Cost-Effective: SaaS is generally the most cost-effective cloud service, as providers lease the software rather than the underlying resources.
• Easy Setup: Requires minimal planning and is easy to set up.
• Simple to Use: Applications are typically straightforward and readily available.
• Rapid Deployment: Offers rapid deployment as software applications are fully provisioned on demand.
• Efficient License Use: Provides efficient use of software licenses.
• Stable Software: Software is typically very stable, backed by the cloud provider’s robust infrastructure and IT support team.
• Centralized Management: Offers centralized management of data and applications.
• Provider-Managed Platform: Platform responsibilities are managed by the providers, freeing customers from application management concerns.
• Multitenant Solutions: SaaS offerings are usually multitenant, allowing for efficient resource utilization.

Drawbacks or Disadvantages of SaaS

While SaaS offers numerous benefits, there are also potential drawbacks to consider:

• Limited Control: Customers have limited control over the system processing their data.
• Shared Resources: Little control over who else is using the software, potentially impacting performance, such as in the case of Dropbox.
• Parameter Limitations: Limited control over the software’s parameters and configurations.
• Deployment Control: Limited control over deployment, upgrade, and testing methodologies.
• Limited SaaS Solutions: Currently, only a subset of software solutions are offered in a SaaS format.
• Integration Challenges: Integration with other software or existing systems can be difficult or unsupported.
• Data Security Concerns: The cloud provider has full access to customer data unless robust cryptography is implemented.