As of January 2023, there are countless
SaaS
products on the market, and many companies are also implementing SaaS. Although many people would like to introduce SaaS in their own company, many do not know what SaaS is or what benefits they can receive.
In this article, we will provide an overview of SaaS, explain the advantages and disadvantages of its introduction, and also explain services that are often confused with SaaS.
If you are considering implementing SaaS, please refer to this article.
What is SaaS?
“SaaS” (Software as a Service: “Saas” or “SaaS”) refers to software running on the provider’s (server) side, rather than installing it on the user’s (client’s) side. A service that can be accessed and used by each user via a network such as
Traditionally, in order to use systems and software, it was common to operate them on-premises by
downloading
them to devices. Although on-premises models have their advantages, they also have many inconveniences, such as not being able to edit from multiple devices at the same time, and not supporting multiple devices.
As
telework
has rapidly spread since around 2020, the disadvantages of using on-premises systems have become clearer, and the shift to SaaS has become more active.
As of 2023, many companies are still using SaaS, and it can be said that it has become a must-have service for improving business efficiency.
Two characteristics of SaaS
Broadly classified, SaaS has the following two characteristics.
I will explain each in turn.
You can edit anytime and anywhere as long as you have an internet connection.
With SaaS software, each client is issued an account, and the software can be used simply by logging into that account in an online environment. Even if you’re not at the office, you can use the software from any location and device as long as you’re
online
.
Therefore, even if a company uses remote work or a flexi system, it can be said that there is an advantage that business efficiency is less likely to decrease.
Can be operated by multiple teams (organizations)
With SaaS, you can log in from multiple devices at the same time, and multiple users can edit at the same time. Therefore, while holding a meeting online while sharing a single file, participating members can also edit the file directly.
In addition, by sharing links etc., you can easily share the contents of files even with people who do not have SaaS tools.
With traditional tools, it is very common for only one user to be able to edit data, or it is not possible to share data unless you have common software. It can be said that the introduction of SaaS has enabled more flexible operations and greatly improved business efficiency.
Difference between SaaS and other terms
There are so many words similar to SaaS, and there are many cases where the meanings of each are confused and interpreted.
From here, we will explain the meanings of words similar to SaaS and the differences between SaaS and SaaS.
Difference with PaaS
“PaaS” is an abbreviation for “Platform as a Service” and is called “Parse”. PaaS allows you to use
the platform
you use to run your applications over the internet. Typical examples of platforms include
server
systems, networks, and operating systems.
With PaaS, you can utilize already prepared server systems, so there is no need to spend time or effort setting up a development environment. Another strength may be that the vendor manages the platform and allows development to be done while ensuring security and functionality. Therefore, it is suitable if you want to focus on system development.
Representative PaaS services include Amazon Web Services (AWS) and Google Cloud Platform (GCP).
It is best to think of SaaS as providing software, etc., while PaaS provides a development platform on which software such as AWS mentioned above operates.
Difference with IaaS
“IaaS” is an abbreviation for “Infrastructure as a Service” and is also called “IaaS” or “IaaS”.
IaaS is a service that provides infrastructure such as virtual servers, storage, and networks for running software. Users install the OS, middleware, application software, etc. on the provided virtual server, and also perform network settings and other settings.
By introducing IaaS, you do not need to prepare your own servers, so you can operate software at a lower cost.
IaaS is often confused with the PaaS mentioned above, but IaaS is very different in that it provides infrastructure such as servers and storage, so please do not confuse them.
Difference with BaaS
“BaaS” is an abbreviation for “Banking as a Service” and refers to services provided by banks as
cloud
services. It is mainly used for payment functions on e-commerce sites, and allows you to make payments directly without going to a bank page.
Before the advent of BaaS, when making a payment on
an e-commerce
site, you had to go to the financial institution’s page and then execute the payment. Since then, with the establishment of BaaS technology, it has become possible for ordinary companies and businesses to use the payment system, and the complicated page transitions that used to be necessary have been eliminated.
BaaS differs greatly from SaaS and other services in that it is specialized for financial services.
Difference with DaaS
“DaaS” is an abbreviation for “Desktop as a Service” and is a type of service that builds virtual desktops on the cloud. By building a virtual desktop using DaaS, the work done on the desktop can be performed on the cloud, so you can use software or perform other tasks without depending on the performance of the device you are using. is.
Benefits of SaaS
SaaS has been attracting attention in recent years, and the reason why the number of users is increasing is because of the unique benefits of SaaS, such as the following.
I will explain each one in turn.
Running costs are low
The running costs of using software and systems include the costs associated with version updates and security measures.
In the case of in-house developed or on-premises software, maintenance tasks such as version updates and security measures are all the responsibility of the user, so the user must continue to pay the costs on a regular basis.
On the other hand, with SaaS, the vendor handles various maintenance tasks, so service users do not have to bear any costs. It is highly valued by companies and business owners because its service content is constantly updated and its security is improved.
Initial cost is low as no software development is required
When using software and systems on-premises, installation costs are high. Additionally, it is not uncommon for it to take a long time from the decision to implement the system to the actual implementation.
“SaaS” uses cloud server software, so no software development is required. In addition to reducing software development costs, it also eliminates the need for development time, so you can expect cost reductions in both money and time.
In addition, even if there is a large increase or decrease in the number of employees, it can be flexibly handled by simply increasing or decreasing the number of
accounts
, so being highly variable can be said to be a major advantage.
Disadvantages of SaaS
So far, we have explained the benefits of SaaS, but of course they are not the only benefits. The most typical disadvantage of SaaS is the low degree of freedom in customization.
As mentioned earlier, SaaS is a service provided by a vendor, so it can only be customized within the scope set by the vendor. Therefore, if you start using SaaS and your company’s business is lacking in functionality, you will need to adapt it to SaaS.
If a SaaS function introduced to improve business efficiency changes the business format and reduces business efficiency, it would be a waste of money. If you cannot find a SaaS that is suitable for your business, we recommend that you consider implementing an on-premises system or developing your own system.
Typical example of SaaS
There are many SaaS services, but the following four are the most representative SaaS.
I will explain each in turn.
Google Sheets
Google Sheets is an online spreadsheet software provided by Google. By using Google Spreadsheets, you can edit on multiple devices, directly convert
CSV
on the web into sheets, and easily link with other Google services.
In addition to being able to perform simple spreadsheet calculations, it can also handle complex functions, so you will be able to manage large-scale numerical values without any problems.
Dropbox
Dropbox is a service that allows you to share and synchronize data between online storage and your local computer by dragging and dropping files into a dedicated folder.
By using Dropbox, you can roll back the change history of files in storage, making the operational status more clear. Also, with other online storage systems, you must be online to change files, but one of Dropbox’s major strengths is that it can be used offline.
Cybozu
Cybozu is a SaaS that is comprehensively equipped with system functions required within the company. Cybozu not only has functions for file management, email management, and to-do list creation within a company, but also time card functions, so you can complete personnel management and project management with just Cybozu.
Since it can be used for 500 yen per month per user, it has been introduced by many companies, especially small and medium-sized enterprises.
Mercato
Mercato is a SaaS that provides integrated support from EC production to operation by EC experts with a rich track record. It is known as an EC-based SaaS that has been introduced by various companies regardless of genre or size and has achieved great results.
Although many services that can create EC have been provided, as of January 2023, Mercato is the only EC-based SaaS that also performs analysis, improvement,
marketing
, etc. It can be said that it is the ideal SaaS for businesses who want to maximize their results in e-commerce.
summary
In this article, we have explained the basic overview of SaaS, the difference from terms similar to SaaS, and recommended SaaS. The advantage of implementing SaaS is that you can improve your business efficiency at a low cost. Additionally, as of January 2023, there are a large number of SaaS being developed, so it is possible to find the one that suits your company.
Why not use this article as a reference to make effective use of SaaS and expand your business?