Exploring SaaS: The Future of Software Delivery

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We will explain the characteristics, representative examples of services, merits and demerits, and differences from similar words about "SaaS" that you may often hear recently. In modern society where digitalization and DX are progressing, I think that you will be able to understand more deeply when you finish reading this article about "SaaS" that is not harmful to know. Please take a look until the end.

What is SaaS?

In my journey through the ever-evolving landscape of technology, I've come across a term that's pivotal yet often misunderstood: "SaaS" or "Software as a Service." This concept isn't just a buzzword; it's a paradigm shift in how we access and utilize software. Let me share with you what I've learned about SaaS, its significance, and how it's reshaping our digital experiences.

Remember the days when software came in boxes with CD-ROMs? We used to purchase these physical copies, install them on our PCs, and run updates manually. That era feels like a distant memory now. Today, SaaS has revolutionized this model. It's fascinating how we've transitioned from tangible software packages to accessing sophisticated applications directly over the Internet.

At its core, SaaS is a mechanism where cloud service providers host software, making it accessible to users via the Internet. This means you can use a myriad of software applications anytime, anywhere, as long as you have an internet connection. There's no installation hassle, no need for complicated settings – it's all about convenience and ease of use.

As I explored SaaS more, I discovered its diverse subscription models. From monthly to annual plans, and from free to premium tiers, SaaS offers flexibility that caters to a wide range of users. This adaptability is especially beneficial for businesses like ours, focusing on system development, app development, and digital transformation.

It's easy to confuse SaaS with web applications, but they're distinct in their own right. SaaS provides the software itself, hosted in the cloud, requiring internet access for utilization. In contrast, web apps, while also internet-dependent, encompass a broader range of functions and are typically stored on servers, offering data and functionalities upon user access.

To put it into perspective, consider Google Drive, Microsoft 365, and Dropbox. These are quintessential examples of SaaS, offering cloud-based software solutions for various needs. In contrast, platforms like Twitter and Instagram are web apps, offering interactive experiences through the web. If you are interested in web application development, please also take a look at web application development at JIITAK.

What you can do with SaaS

SaaS can help not only business, but also improve personal hobbies and lives such as Google Drive and Netflix. Here, we will introduce some SaaS features.

・There is no hassle of installation or setting, and it can be used immediately

SaaS is a cloud-based service, which allows users to save time and effort in installing software and setting preferences. Just open a web browser and log in, and you can start using it immediately.

・If you have the Internet, you can use it anywhere

SaaS is provided via the Internet, so users can access it anywhere, such as offices, homes, and cafes, wherever there is an Internet environment.

・Accessible from various devices

You can flexibly use devices such as computers, smartphones, and tablets used by users without hardware restrictions.

・You can use the latest functions without hassle

Software maintenance and updates are done by the provider, so users do not need to update the software themselves and can always enjoy the latest features and security improvements.

The history of SaaS and the trigger for the fire

SaaS is developed by various startup companies, but I would like to look back on what kind of history there is behind it. First of all, SaaS developed based on the concept of ASP. ASP stands for Application Service Provider, which is a company or service that provides software via the Internet without installing software on your computer, It refers to software that can be used on the Internet. For example, you can do office work such as email, document creation, and spreadsheets directly from your browser. Below, we will look back on the history of SaaS.

1990s
The spread of the Internet has progressed, and the concept of ASP (Application Service Provider) where companies provide software via the Internet has spread. However, at that time, there were Internet connection speed and security issues, and the spread of actual ASP was still limited.

At this time, it was common for companies to develop and maintain software in-house, but ASP became a new business model to manage software on the cloud and provide applications to customers.

ASPs eliminate the need for customers to purchase software in-house and implement, manage and maintain them, bringing the benefits of convenience and cost reduction.

2000s

Since around 2006, due to the spread of Internet and the evolution of technology, the term SaaS has become more commonly used from ASP.

SaaS is a very convenient and flexible business method that evolved the previous idea of ASP, and has come to attract attention as a convenient and flexible business model for companies and individuals.

At this time, major IT companies, emerging vendors and startup companies have worked on SaaS development and have been used in various industries.

2010s

In the 2010s, due to the spread of mobile devices and the evolution of cloud technology, the demand for software and services online increased, and the demand for SaaS further expanded.

・The mobile-first approach was emphasized, and SaaS providers optimized their applications to make them easier for users to use on mobile devices.

・The low cost of storage, the spread of mobile devices, and the promotion of DX by companies have accelerated the spread of SaaS.

2020s

In the 2020s, the demand for SaaS accelerated further due to the progress of digital transformation and the impact of the pandemic.

Combined with AI and big data technologies, SaaS has come to provide more advanced functions and predictive capabilities.

SaaS plays an important role in business, and companies can expect stable revenue and growth opportunities are expanding.

Pros & Cons

Here, we will introduce the advantages and disadvantages of SaaS.

Pros

Persistence and scalability of revenue

The cost of introduction can be reduced

Simple introduction and use

Reduce the burden of maintenance

Full service

Cons

Dependency on Internet connection

Security risks such as the possibility of unauthorized access

Constraints on customization

The SaaS business model is based on subscription and can bring revenue sustainability and growth opportunities to companies, so various companies (especially startups) are entering the SaaS market. Even from the user's point of view, the usage fee is monthly and annual subscription type, so the introduction cost can also be reduced.

In addition, SaaS is a cloud-based service, so it is easy to install and set up, and there is no need to update by users themselves. In addition, the support is also substantial, so you can use it with confidence.

On the other hand, because connecting to the Internet is a condition of use, you can not access any services during maintenance. In addition, since data is stored on the cloud, there is a possibility of unauthorized access, and security measures need to be taken fully. In addition, SaaS emphasizes versatility, so it may be difficult for users to customize it freely.

Representative examples of services

We will list some typical service categories and actual service examples of SaaS.

Office work

You can use office tools to create documents and process data. Co-editing and real-time collaboration with multiple people are possible.

Microsoft 365: Cloud service that provides office software such as Word, Excel, PowerPoint, etc.

Google Workspace: Cloud service that provides office tools such as Google Docs, spreadsheets, and slides

Communication

It is a tool and platform to facilitate communication within teams and organizations. It provides functions such as chat, video conferencing, file sharing, task management, etc. to support real-time communication and information sharing.

Slack: A messaging platform that supports team communication and collaboration

Microsoft Teams: A platform that provides functions such as team communication and video conferencing

Project management

We support the management of the entire project, such as task management, schedule management, and team communication.

Asana: A project management tool that supports task management and project progress management

Trello: A tool that supports task management and project visualization using Kanban Board

Design and Creative

It is a tool and platform for doing creative work online such as graphic design, illustration, photo editing, and video production. Designers and creators can create professional works and use collaboration and cloud storage to work efficiently.

Adobe Creative Cloud: A cloud service that provides design tools such as Photoshop, Illustrator, InDesign, etc.

Canva: An online tool that makes it easy to create graphic designs and presentations

Customer support

SaaS tools that provide functions such as customer management, chat support, and ticket management can help you communicate smoothly with customers and solve efficient problems.

・Zendesk: Customer support platform for ticket management and customer service

"As a Service" is not just SaaS

There are many "◯aaS" such as PaaS, IaaS, BaaS, and MaaS in the types of cloud services. This is called "As a Service" and is one of the business models that provide software and services on the cloud. It is also said that there are from A to Z, and if X is applied, it will be XaaS (Anything as a Service) and it will be a generic name that provides various services on the cloud.

Users can increase flexibility and scalability by selecting and using what they need at that time from among the various services provided on the cloud. Below are some representative ones.

・PaaS (Platform as a Service)

It is a service that provides the platform necessary for developers to create applications. With PaaS, developers can focus on developing applications without having to prepare their own servers or databases.
Examples: AWS, Microsoft Azure, Google App Engine

・laaS (Infrastructure as a Service)

It is a service that provides virtualized infrastructure (foundation) such as servers and storage. By using IaaS, you can save the trouble of preparing your own server and storage.
Example: IDCF Cloud, VDC PRO, Dropbox

・BaaS (Backend as a Service)

It is a service that provides mobile app back-end functions (database, user authentication, push notifications, etc.) on a cloud basis. This allows developers to focus on app development without spending time implementing the backend.

・MaaS (Mobility as a Service)

It is a service that provides means of transportation (public transportation, cars, bicycles, etc.) via the Internet. Through the MaaS platform, you can choose the necessary means of transportation and make a lump-sum payment with the payment system built into the system, which improves convenience.

The future of SaaS

DX and telework are expected to advance further, and SaaS is expected to continue to grow and have a future as the market size grows.

・Fusion with AI

By integrating with AI technology, it will be possible to provide more efficient services and highly predictive functions. By using automation and data analysis by AI, companies can expect to gain further competitiveness.

・Mobile-first approach

With the spread of mobile devices and the increase in telework, users are required to be able to access SaaS services anytime, anywhere. SaaS is expected to expand demand by adopting a mobile-first approach and providing flexibility and convenience to users.

・Development of industry and vertical market

SaaS can be applied to various industries and vertical markets. With the increase of SaaS services specialized in specific industries and markets, solutions that meet your needs will be provided and the market will grow.

・Strengthening security and privacy

As security and privacy become more important, SaaS services are working to enhance safety and data protection. By providing reliable security measures and privacy protection mechanisms, companies and users can expect to use SaaS with peace of mind.

Summary

So far, we have explained the features of SaaS, representative examples of services, advantages and disadvantages, and future potential.

With the development of DX and telework, SaaS is expected to increase demand and expand the market size. Because the cost is reduced, the introduction hurdle is low, and many companies have already introduced SaaS services, and startups and listed companies are also energetic to launch services.

In addition, more and more companies are developing new SaaS, and new services will be created that aim to improve efficiency and simplify work. And SaaS will continue to grow in order to reduce time and improve business efficiency.

JIITAK supports SaaS development, feel free to contact us for your SaaS requirements.

References

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Written By

Mark Levantins

Mark Levantins, with 6 years of extensive experience in system and app development, specializes in digital transformation, integrating innovative solutions to enhance customer experiences and business processes.

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