Abstract: The rise of Internet services has transforms the way we work and communicate, enabling us to access information and connections worldwide. However, this rapid growth has also introduced new technological concepts, such as SaaS, IaaS, and PaaS, which can confuse those unfamiliar. So, why not join Jodoo to start an exploration journey and discover the differences between these cloud computing solutions?
What is SaaS？
SaaS, or Software as a Service, is a cloud computing model that has transformed the way businesses access and use software apps. With SaaS, you can access software apps over the internet, no matter where you are in the world. You can work from the beach, from a coffee shop, or even from your own home, as long as you have an internet connection. It’s like having your own private IT department but without the hassle of managing hardware and infrastructure. In the past, companies had to purchase and install expensive software on their own servers, which required significant upfront investments in hardware and infrastructure. However, with SaaS, the provider takes care of all the hosting, maintenance, and upgrades. This means you don’t have to worry about hiring a team of IT professionals to manage your software apps, as the SaaS provider does it all for you.
What is the difference between SaaS, IaaS, and PaaS?
When it comes to creating a website, there are a few different methods you can choose from. Traditionally, this would involve buying a server, installing server software, and developing your website program. However, with the rise of cloud computing, there are now three main ways you can build and deploy your website using the cloud.
The first option is to use IaaS, or Infrastructure as a Service. It means you don’t need to buy and maintain your physical servers. You can rent virtual machines from a cloud provider and install your server software on them. This gives you more control and flexibility over your infrastructure, but it also requires more technical expertise.
Second, you can use PaaS, or Platform as a Service. With this approach, you don’t need to worry about managing servers. The PaaS provider takes care of all the server software and infrastructure for you, so you can focus on developing your apps or website programs.
The last one is to build your website with SaaS. This involves using an existing online forum or e-commerce platform that has already developed the software and infrastructure for you. This means that you do not have to develop your own website program; Instead, you can utilize the pre-built software offered by the SaaS provider. SaaS providers are accountable for maintaining, upgrading, and scaling the program. It enables you to concentrate on running your business.
More detailed comparisons:
SaaS vs. Traditional software
Why are more businesses turning to SaaS platforms? What sets SaaS apart from traditional software? Using the Jodoo SaaS platform as an example, let’s explore the differences between SaaS and traditional software from both the business and employee perspectives.
From business aspect
Compared to traditional software, the subscription-based business model of SaaS products offers numerous benefits for businesses in terms of expenditure：
1. No implementation costs
SaaS products provide faster deployment, accelerate product launch, and enable iterative development. This minimizes the requirement for lengthy local deployment processes and reduces upfront costs for companies (excluding opportunity costs).
2. Low product trial and error cost
SaaS products have a lower initial investment through monthly payments compared to traditional software’s one-time payment. Additionally, if a SaaS product fails to meet expectations, it can be switched to a different product at a relatively low cost.
3. Saves enterprise IT expenses
In the long run, the cumulative payment of SaaS products is not necessarily lower than the one-time expenditure of traditional software. However, the monthly payment model can save small and medium-sized enterprises considerable money by reducing cash flow pressure.
In terms of business return perspective, SaaS products have superior capabilities in their general and customization abilities.
SaaS products offer a standardized set of features that are continuously optimized and upgraded based on customer feedback. It is similar to an iterative approach to internet products. In contrast, traditional software products that use local deployment tend to have lengthy optimization processes. They often require additional fees for upgrades.
Regarding customization abilities, traditional software products provide more options than SaaS products. However, the divider of the definitions between customization and generalization is not always clear. Reasonable customization requirements can often be generalized in the final outcome. Small and medium-sized enterprises may have lower demands for customization, and SaaS products offer comprehensive and well-developed general functions and templates. On the other hand, for larger enterprises, customization is essential. SaaS products can satisfy this need through their existing ways.
From employee aspect
Frontline employees prioritize user-friendliness and efficiency when using a product, although they are not the main paying customers. This group often receives less attention from service providers in the early stages, which is a key factor in existing differences between traditional software products and SaaS products.
In terms of user scale, SaaS companies typically have a user base that is ten times larger than software companies of the same revenue scale. In terms of user portrait, as SaaS companies often target SMBs, paying customers and users overlap significantly. It results in more user feedback and a need for increased attention to frontline employees’ feedback.
Many frontline employees, particularly salespeople, place a higher priority on mobile device usage over desktop devices. From the perspective of cross-platform collaboration, SaaS products can integrate with popular mobile apps based on cloud computing. They support the mobile device ecosystem effectively. This includes real-time business needs like cross-device linkage.
IT support plays an important role when enterprises procure external IT systems. With non-local deployment, SaaS products include IT support in their business scope. However, software products require IT support as an essential position, as maintaining and operating locally deployed servers alone requires significant manpower. Moreover, traditional software products are typically a one-time purchase, with relatively high maintenance costs after delivery.
Conclusion
In conclusion, cloud computing has revolutionized the way businesses access and use software apps, and SaaS is at the forefront of this transformation. The benefits of SaaS, including lower costs and faster deployment, make it a popular choice for companies of all sizes. While IaaS and PaaS provide alternative approaches for building and deploying websites or apps, SaaS offers superior general and customization capabilities that cater to the needs of small and medium-sized enterprises. Frontline employees prioritize user-friendliness and mobile usage, which SaaS products can effectively meet. As companies continue to navigate the complexities of IT support and maintenance costs, the advantages of SaaS will undoubtedly make it an increasingly popular choice for businesses worldwide.
Jodoo is a no-code app-building platform, which can help people in various industries build personalized apps without coding such as CRM, ERP, OA, project management, and so on. After understanding SaaS and its advantages, let’s start by registering Jodoo and feeling the charm of the SaaS platform. together!
