SaaS in Cloud Computing

Written by Web Hosting Expert

March 9, 2022
SaaS in Cloud Computing

Every once in a while, a new technology trend takes the online world by storm. One of those trends was the cloud and everything that came with it.

One of the byproducts of cloud computing is SaaS, which has become a top-rated solution for businesses and individuals alike, with approximately 99% of all businesses using at least one SaaS solution. The SaaS market has grown exponentially, reaching an estimated value of $171 billion by the end of 2021. So, let's dive into the world of SaaS and see what it offers

What Is SaaS?

SaaS, or Software-as-a-Service is a way of providing software to users without having to install it. Instead, the software is available and stored on the cloud. So, users can subscribe to an application and log into it from any device that has an Internet connection to use the service.

How Does SaaS Work?

SaaS replaces the need to buy and install software because it provides users with software over the Internet. With SaaS, users have network access to applications, and their data can be stored either locally or on the cloud. SaaS is compatible with other existing software and can be integrated via an API. SaaS can be accessed on any device with an Internet connection. All you have to do is log into the application you're subscribed to, and you're good to go.

Businesses and individuals often use SaaS for the following setups:

  • Email

  • Sales management

  • Customer relationship management (CRM)

  • Financial management

  • Human resource management (HRM)

  • Collaboration

  • Billing

Advantages & Disadvantages of SaaS


Easily accessible
Managed by the provider
Good value for money
High scalability
Storing data
Analytics are easily accessible
Superior security
It's easy to use

Little control
Customization is quite limited
More significant latency
Compliance with regulations can be tricky

SaaS Advantages

  • Easily accessible
    SaaS can be accessed through an Internet connection at all times, on any browser from any computer, PC, or mobile device

  • Managed by the provider
    the SaaS provider handles the updates, maintenance, etc., and you don't have to install or download anything. Also, there is no traditional licensing management

  • Good value for money
    SaaS providers have flexible pay-as-you-go models or subscriptions, and there are no upfront hardware expenses

  • High scalability
    scaling with SaaS is easy, and changes to your site can be quickly accommodated

  • Storing data
    the data you create is regularly stored on the cloud

  • Analytics are easily accessible
    data reporting, intelligence tools, and other such analytics are readily available

  • Superior security
    almost all SaaS providers emphasize security and offer a plethora of security features, technology, and expertise

  • It's easy to use
    the tools that come with SaaS are user-friendly, and you do not need professional help to get the most out of them

SaaS Disadvantages

  • Little control
    due to the provider being in charge of virtually everything, you have no control over what goes on, and you depend a lot on the provider

  • Customization is quite limited
    the majority of SaaS providers do not allow for high customization

  • More significant latency
    SaaS apps can have a slower speed and more latency compared to client or server apps

  • Compliance with regulations can be tricky
    you will need to learn which rules are relevant for your business, know what to ask your provider, and deal with any issues that might pop up in the meantime on your own, as the provider does not take care of this for you

Examples of SaaS

SaaS In Cloud Computing
  • BigCommerce - an eCommerce platform that offers online store creation, SEO, hosting, etc.

  • Google Workspace - software that offers cloud computing, productivity, and collaboration tools Dropbox - a file hosting service that offers cloud storage, file sync, personal cloud, client software, etc.

  • Salesforce - a cloud-based software company that offers CRM and apps focused on customer service, marketing automation, analytics, etc.

  • Cisco WebEx - a company that offers web conferencing, videoconferencing, unified communications as a service, etc.

  • SAP Concur, GoToMeeting, Zoom, MailChimp, Adobe Creative Cloud, GitHub, Xero, JetBrains, ZenDesk, DocuSign, Slack, Lumen5, FutureFuel, Squibler, Buffer, Amazon Web Services, HubSpot, Cloud-Based Microsoft Office 365, Visme, Canva, GSuite, Workday, Acumatica, Service Now.

Other Cloud Service Types

  • PaaS - Platform-as-a-Service is a cloud service that provides consumers with hardware and software over the Internet. It supplies users with operating systems, databases, and other platforms. PaaS users are typically looking to create an application, with the PaaS provider hosting the hardware and software
  • IaaS – Infrastructure-as-a-Service offers users access to physical and virtual servers, storage, networking resources, and much more on-demand. All of the resources are cloud-hosted, and users can pay on a pay-as-you-go basis. The IaaS market is estimated to have a $121 billion value in 2022

IaaS vs. PaaS vs. SaaS

As mentioned above, SaaS offers you applications via the Internet, and you do not need to install, download or run any of them on your own.

PaaS is most commonly used for developing and deploying custom applications. It provides platforms and frameworks hosted on the provider's infrastructure, and the provider manages all things related to the infrastructure.

IaaS has the pay-as-you-go option for users, where you only pay for the resources you actually use. It also enables you to have more control and higher flexibility.

The most crucial difference between the three types of cloud services is essentially the amount of control each offers.

You can have the most control and say over your applications, data, runtime, operating system, middleware, etc., with IaaS. With PaaS, you are in charge of the applications and data. SaaS allows you to have the least control out of the three, and you are only responsible for the data you create within the software. All else is controlled by the SaaS provider.

When to Use SaaS?

  • SaaS is suitable for small businesses and startups that are looking to get their eCommerce store off the ground quickly and do not want to spend time installing software or fixing server issues

  • Most short-term projects that need simple, easy, and affordable collaboration use SaaS services

  • SaaS is good for applications that are not used regularly

  • Businesses and individuals that need web and mobile access usually go with SaaS

  • SaaS is great for businesses that need access to the application from anywhere and on all devices

Types of SaaS

  • Customer Relationship Management or CRM software – CRM's are perfect for businesses that handle large volumes of sensitive data because they collect and store it efficiently and securely. This, in turn, helps to improve and maintain customer relationships segmentation and allows for superior data protection. The users of CRM software are most often B2C companies and use the software to make repetitive tasks automatic, for their sales and marketing departments and customer service. Some examples of CRMs include Salesforce, MailChimp, Pipedrive, etc.
  • Human Resources or HR – the HR SaaS software enable business users to manage employees' work schedules, vacations, sick leaves, etc., more efficiently. It also tracks the performance and time that an employee has spent with the company, which helps in knowing which employees are most valuable and worth retaining. HR SaaS software goes a long way in keeping the employees informed, productive and efficient. Some examples are Breathe HR, People HR, Bullhorn, etc.
  • Enterprise Resource Planning or ERP Software –businesses most commonly use ERP software for managing day-to-day operations like accounting, procurement, project and risk management, compliance, the supply chain, etc. Some providers offer enterprise performance management with their ERP package, which helps in making the planning, budgeting, predicting, and reporting of the company's financials more efficient. ERPs have become an integral part of a multitude of businesses of sizes and industries, with the ERP market having an estimated worth of $25 billion in 2021.
  • Accounting software – Accounting software helps businesses to keep track of their finances and billing, which is essential for any business. The accounting and billing SaaS software helps businesses better organize and keep track of their cash flows, transactions, budget, etc. It also saves the business and its employees a lot of time, especially when it comes to reconciling the accounts, fixing financial mistakes, making data entry more efficient. This software also helps with payroll, taxes, and customer payments. Popular accounting software SaaS providers are Quickbooks, Chargebee, Chargify, etc.
  • Project Management Software – This software is suitable for businesses that handle multiple projects at the same time. It allows them to stay on top of everything and be organized without any disruptions to the projects. The project management software allows businesses to plan, track, allocate, schedule, communicate and work together with team members all in one place. It can also show a project's progress, showing which team members have done what task. Some examples of project management SaaS include Trello, Github, Basecamp, etc.
  • Email Marketing Software – This software allows you to make, send and track emails that are being sent to your list of subscribers. With this software, the making of well-constructed emails is easy and straightforward. It also enables you to see metrics such as open rates and click-through rates. The more advanced providers also allow users to tailor the emails based on the individual user's behavior, making the engagement more personal because it is based on their interests. Email marketing is a powerful marketing strategy that can be used in practically any business. While email marketing is not a new approach, it has demonstrated that it is beneficial in industry reports year after year. Moreover, email marketing is the second most popular content distribution channel, with 87% of marketers using it. The only channel that is used more is social media.

Conclusion: The Future of SaaS

The future of SaaS is definitely a bright one. Some SaaS providers and businesses believe that the new spike in SaaS usage will be focused on a more integrated mobile-device experience and mobile devices in general. Some think that AI will make a massive impact on SaaS in the fields of logistics, transport, and retail especially.

SaaS has been evolving ever since its introduction, and it offers users a myriad of benefits, which also makes it appealing for providers to supply as well. So, it's safe to say that it isn't going anywhere in the near future!

Frequently Asked Questions

Will cloud hosted websites be backed up?

Yes, Verpex performs daily backups of all sites hosted.

Why should I try a managed cloud server?

We’d highly recommend using a managed service, especially if you don’t have the technical skills to run a website. It might cost a little extra, but it certainly takes the stress out of site management.

Do I need technical knowledge to use cloud hosting?

Not necessarily. Under a fully managed hosting package Verpex will take care of all the technical aspects for you.

How easy is it to increase bandwidth on cloud servers?

Incredibly easy. Since you’re in a pool of other servers you can draw on those resources at any time. If you need to increase your bandwidth or storage limits just give us a call and it can be done instantly.

Bruno Mirchevski
About the Author
Bruno Mirchevski

Bruno Mirchevski is a web hosting services expert. He has spent years researching the niche, exploring the most diverse aspects of Shared, VPS, WordPress, Cloud Hosting, Dedicated Servers, Resellers, etc. With his extensive knowledge and experience, he can grant you meaningful insights on our blog, whether you are a beginner or a hosting pro.

View all posts by Bruno Mirchevski
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