SaaS is software licensed and paid for based on usage, commonly used for internet-based software. It benefits users and software companies but raises security concerns. System or internet connection problems can disrupt work.
SaaS is short for Software as a Service. Technically this means that software is licensed and paid for by how much it is used, rather than as a flat fee. In practice, the term is more commonly used for software that runs on the Internet. The idea is that the customer pays for the service provided by the software rather than the software itself.
In many, but not all, cases, a SaaS product will be configured so that the software vendor uses the Internet to provide services to clients rather than software that must be installed on client computers. This idea is also commonly known as cloud computing. Such a setup isn’t necessarily a new idea: for example, many people have used webmail services like Hotmail. In these situations the software that sends, reads and organizes the emails is not on the user’s machine. Instead they access it through their web browser.
In some situations, SaaS may run on a different model. For example, the software could be installed on the user’s computer and then remotely disabled after the end of the license agreement. However, SaaS is most commonly related to the cloud computing model and most of its perceived advantages and disadvantages are based on that configuration.
There are several benefits for both users and software companies of the system. The user does not need to devote as much disk space or other resources on their computer to the software on their system. The software maker has less to worry about in terms of illegally copied software. Any updates and bug fixes can be done instantly rather than having to be pushed to individual machines.
One of the biggest concerns users have about this SaaS model is security. There are inherent risks in sending confidential data to and from the servers hosting the software, meaning that any document created using the software should be treated as potentially less secure than one kept exclusively on a corporate network. Most SaaS providers will have very strict controls designed to protect against data security breaches and to reassure customers.
SaaS can also be problematic if the business hosts the software online and then has a system or internet connection problem. This can prevent users from using the software, which can disrupt their work. Many vendors provide guarantees about how little will happen, although these can be misinterpreted: a “99% uptime guarantee” sounds impressive until you realize that it would allow the service to be unavailable for almost four days a year. Of course, if a user loses his Internet connection, he won’t be able to use the software either.
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