What Makes a SaaS Product SaaS?
Software as a Service, or SaaS, might sound like a complex topic—but chances are good that you’re already using a variety of SaaS products every time you open your laptop.
Put simply, SaaS products are online applications you’re able to use without physical software. It’s like the difference between buying a physical QuickBooks Enterprise CD-ROM at the store versus purchasing QuickBooks Online. The CD-ROM is software that’s loaded onto your computer, compared to QuickBooks Online, which is a SaaS product; you can access it through your web browser with an internet connection.
Other popular SaaS products you might already use include email services, cloud-based word processors, chat applications, browser-based tax-filing services, photo and file storage products, client relationship management tools, and video conferencing apps.
For some of these applications, there might be a SaaS and physical software product, similar to our example with QuickBooks Enterprise and QuickBooks Online. Or similar products might be offered exclusively in SaaS form, such as Sage Intaact, one of our new offerings at Certum Solutions. There are some key characteristics that clue you in when a SaaS product actually qualifies as Software as a Service—and can give you as the user some distinct advantages.
1. It’s Easily Accessible
Accessibility might be the most popular and useful aspect of SaaS. All that’s required to begin using a SaaS product is a compatible web browser and internet connection. When users are invited to join a SaaS application, they can be on any device in any location to get logged in. While a company might have an app to download with a specially designed interface, it’s effectively an extension of the same concept: real-time, internet-based products that don’t require a fixed location or computer to access.
Advantage for you: Users can access SaaS products from any location, which is convenient and flexible.
2. It’s Centrally Hosted
SaaS companies centrally host their SaaS products on physical servers or in cloud infrastructure. The SaaS provider manages and maintains the servers, hardware, or infrastructure needed for the SaaS product. This includes tasks such as data storage, security, and backups.
Advantage for you: You can save money by letting the SaaS company pay for the infrastructure to run the application; you don’t have to make any specific hardware investment beyond an internet-enabled device.
3. It’s Payment-Based on Need
SaaS applications generally have tiered or per-user pricing models that allow you to tailor your payment to the number of users or the amount of product usage you need. Generally included in the cost of the SaaS product are ongoing updates, maintenance, and support. This model works well for the SaaS providers because of their multi-tenancy design: the same shared infrastructure that they’ve built can serve multiple customers. This architecture lets the provider efficiently manage resources based on demand.
Advantage for you: Pricing is all-inclusive as far as the costs for the company to provide infrastructure, storage, and customer support. You can also generally score discounts by paying upfront or for longer service terms—or by working with Certum!
4. You’ll get Automated Updates
Providers typically manage software updates and upgrades centrally, ensuring that all users have access to the latest security patches and features. There’s no need for manual installation or intervention from users.
Advantage for you: The biggest risk you face when your software programs are out of date is a security threat. There’s less likely to be a discoverable way in for hackers with SaaS products because security fixes are pushed to all users immediately. Bonus: You always get the latest fun or innovative product updates without waiting on a download.
5. It’s Scalable
SaaS applications are designed to scale easily to accommodate growing numbers of users or increased demand. When you add new employees—or lose some—it’s no big deal to adjust your usage. Providers handle the infrastructure requirements, allowing customers to scale their usage up or down as needed without an upfront investment in infrastructure.
Advantage for you: The scalability for SaaS products lets you adjust your number of users without much ado. At the same time, you don’t need to worry about your business investing funds into buying more physical servers and other infrastructure to maintain as your business grows.
Get the Cloud-Based Service you Need
QuickBooks Online and Sage Intaact are excellent SaaS products for businesses looking into cloud-based accounting software. Which you choose depends mostly on the size and growth of your business.
Using Software as a Service might be a priority for your business so that information is available to you and your colleagues no matter where you are. At Certum Solutions, we thrive with SaaS products because our team is located in different states—they help us work together effectively with the same sets of information that we can make changes to in real time. And they’re not ridiculously expensive.
If we can help your business get set up with a cost-effective and flexible way to access your financial and accounting information, please schedule a meeting with us. We’re happy to talk through the differences between QuickBooks and Intaact to find the best SaaS solution for your business!