Software as a Service, also known as ‘hosted software’ or ‘on-demand software’ offerings, allow businesses to utilise software without requiring any physical installation, regular updates or maintenance by themselves. A prime example of a SaaS offering is Salesforce, one of the most popular CRM systems in the world.
SaaS allows businesses to avoid requirements for server space and software licensing fees - instead, subscriptions can be managed online based on number of users and project demands. SaaS offers great flexibility in terms of quick deployment, as well as adaptability towards individual business needs. Additionally, any problems encountered with the software – such as system errors or disruption - tend to be quickly resolved by the service provider.
The potential headache for businesses who choose to adopt SaaS applications is in utilising multiple SaaS applications at once. Applications don't always harmonize with each other, which can lead to struggles trying to integrate data from multiple sources. Security can be another cause for concern – there are significant regulations based around storing personal data on remote servers, and this should be taken into account when considering your options.