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What is SaaS or Software as a Service?

04 Jan 2023. 18:26
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  • SME maturity
    1. Infraestructuras
    Scope to digitize
    1. ICT infrastructure

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Software as a service can be an ideal solution for your SME regardless of its size. Discover in this post what it is and how it can boost the productivity of your business.

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As time goes by, technology is becoming an essential factor for companies. This is due to the ease which it allows us to cover essential day-to-day tasks in a much more agile and efficient way. The needs of companies and businesses have been motivating, increasingly, to the emergence of a large number of technological innovations. For this reason, the development of companies has been linked in parallel to technological development. This trend has been intensifying notably in the last decade. 

The importance of technology in companies is becoming increasingly evident.


But it is also evident that not all companies have the capacity to acquire the same technological resources. Fortunately, there are several options that can be adapted to the needs and capabilities of each company, regardless of its size. One of them is software as a service or SaaS. Want to know more? We tell you how this model works and what it can be used for.


What is SaaS?

Software-as-a-service, or SaaS, is a software model that does not require local installation on your company's devices. In other words, SaaS offers users the ability to connect to various applications through a cloud service provider.

SaaS is an end-to-end solution that works on a subscription basis as follows: the service provider develops, maintains and updates the application infrastructure and information, while authorized users can access the application from any location or device. They do not need to have the program installed on their computer; they just need to have internet access.

If you have used a service such as Outlook, Gmail, Yahoo! Mail, among others, then you have already used a SaaS form. Other common scenarios of SaaS applications that you may have also used are: Dropbox, Google, Free PDF or Netflix.


What is the origin of SaaS?

In the past, there were software for all business functions: inventory control, cash flow, invoice issuing, email management and much more. And although this meant high costs for companies, the idea of centralizing all business applications did not exist until the rise of the Internet and application service providers (ASP) in 1990. 

These providers were the forerunners of the SaaS model, as they relied on the management of third-party applications hosted by an ASP provider. However, they had several limitations including having to install the software locally, costly setup, and were also unable to aggregate and collect data effectively. 

Because of this, SaaS is an evolution of the ASP model and since 2000, it has been constantly evolving. With the increasing popularity and use of web interfaces and mobile devices, the standardization of digital technologies, and the rise of remote working, SaaS has become a feasible option for enterprises. Today, SaaS offers companies a higher level of efficiency, cost savings, flexibility and many more benefits that we will see below.


Advantages and benefits of SaaS

  • Cost reduction in terms of infrastructure and software configuration.
  • Access to sophisticated applications without the need for any infrastructure or maintenance.
  • Frequent and automated application updates.
  • Ability to access data anywhere.
  • Rapid implementation to start working almost immediately.
  • Ability to adapt to the workers´ needs and the company´s.

As you can see, the SaaS model allows savings and agility among many other competitive advantages that will undoubtedly translate into profit.


Characteristics of a SaaS model

As you can see, the SaaS model allows a company to start up using applications with a minimum initial cost. In addition to these benefits, we explain the main features of a software as a service.

  • All users and applications share the same infrastructure.
  • It allows access from any connected device.
  • Its design is based on the client's web, so it is familiar to users and easy to use.
  • It allows the collaboration of different users in different locations.


Because of its adaptability, the SaaS model is ideal for businesses of all sizes, from start-ups, developing companies and global corporations. For this reason, this model can translate into a benefit for your SME. Are you ready to boost your business with this technology?


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