What is SAAS? Everything you need to know about the SAAS model

With the continuous development of technology, SAAS is becoming more and more popular and popular because of its cost savings and easy expansion. So what is SAAS ? If you are looking for an optimal software solution for your business, join 1C Vietnam to learn everything about the SAAS model through the article below.

1. What is SAAS?

SAAS (Software-as-a-Service) is a cloud computing service model that provides software over the internet for a recurring subscription fee. Thanks to the growth of mobile devices and IoT, SAAS has become popular in fields such as accounting, office, drafting, warehouse and customer management. Large software companies such as Salesforce, Oracle, SAP, Intuit and Microsoft all use this model.

2. Advantages of SAAS system

SAAS is considered a superior model today, possessing many outstanding advantages such as:

2.1 Flexible payment ability

When customers sign up for SAAS service with a monthly or annual fee, the variable costs will be converted into recurring operating costs, helping businesses easily budget. Besides, the service can be stopped at any time to avoid recurring costs.

2.2 Increase accessibility

SAAS allows accessing the software from any device with an Internet connection without installation. When businesses create accounts for employees according to the subscription package, users can access the software anytime, anywhere with a simple login.

2.3 Easy customization according to user needs

Cloud services like SAAS provide both vertical and horizontal scalability, allowing customers to customize features according to their needs.

2.4 Automatic updates

Instant update capability is the main advantage of SAAS. Cloud-based development, vendors can continuously update software without affecting users, ensuring security updates are applied promptly. This is different from traditional software, where security updates are often delayed. From there, SAAS brings greater convenience and security to users.

2.5 Extensive integration capabilities

On-premise software (software purchased by businesses through a perpetual license) usually operates independently and is not linked to other applications. However, data integration between applications is essential to optimize processes and save time. SAAS has developed strong integration capabilities through APIs, allowing data exchange between applications from many different vendors, helping businesses quickly integrate with new technology.

3. How the SAAS model works

From understanding what SAAS is , businesses can grasp how this software works. SAAS software as a service operates through a cloud model, in which vendors host applications and data on their own or third-party servers.

The provider also manages the platform, operating system, and middleware. Users register and log in via a web browser to access the applications after registering with the SAAS provider. A multi-tenant model is often adopted, allowing multiple users to subscribe to a single SAAS solution instance.

4. Example of SAAS model

With outstanding advantages, SAAS software is increasingly chosen by many businesses. Popular SAAS applications today include:

• Customer relationship management software (CRM)
• Enterprise resource planning (ERP) software
• Human resources software
• Accounting Software
• Marketing software
• Communication software
• Collaboration tools
• Document editing service
• Security software
• Contact Center Software

5. Differences between SAAS model and other cloud service models

Although the concept of what SAAS is is quite accessible, not everyone can distinguish the difference between SAAS (Software as a Service) and other models such as IAAS (Infrastructure as a Service) and PAAS (Platform as a Service). Each model has its own characteristics, suitable for different needs and goals of businesses. In this section, 1C Vietnam will help businesses have a comprehensive view and choose the most suitable solution for their organization.

5.1 Comparison between SAAS and PAAS

Where SAAS is used to perform specific tasks, PAAS provides access to managed infrastructure for application development. The platform allows developers within an organization to create custom applications without managing data infrastructure or operating systems.

5.2 Comparison between SAAS and IAAS

SAAS provides comprehensive third-party software selection and maintenance services, while IAAS focuses on provisioning and maintaining core components such as servers and storage. IAAS is considered the right choice if a business wants to retain high control over its environment, while SAAS is more appropriate if ease of use is a priority.

Companies often use IAAS to rent data centers and computing resources from a cloud provider. IAAS providers manage infrastructure components such as servers, storage, networking hardware, and virtualization resources. Customer organizations using IAAS services must still self-manage their data usage, applications, and operating systems.

6. Development trends of the SAAS model in the world and in Vietnam

The development trend of the SAAS model in the world and in Vietnam is gradually increasing with the transition from traditional software to cloud-based solutions. Businesses increasingly favor SAAS thanks to its flexibility, cost savings and easy access to new technologies. Specifically:

• In the world

Currently, businesses often adopt at least one SAAS solution from major vendors such as Oracle, Google, ServiceNow, Microsoft and IBM. SAAS is dominating the technology software market. According to a report by BCC Research, the SAAS software-as-a-service market was valued at $44.4 billion in 2017 and is expected to grow to $94.9 billion by 2022, with a growth rate of 16.4%. This shows that the SAAS model has strong development potential in the future.

• In Viet Nam:

According to research by the Asian Cloud Computing Association in 2016, Vietnam ranked 14th in terms of cloud computing industry development speed in the Asian region, only behind China and India. This shows great potential for Vietnamese businesses that want to apply SAAS solutions that suit their needs, such as products developed by 1C Vietnam such as business management software and other applications such as accounting. -Administrative and performance management.

7. Apply smart SAAS model with 1C:ERP solution

Currently in Vietnam, 1C:ERP is a popular solution in the SAAS field. With the ability to master technology and implementation experience from 21 international partners, 1C:ERP solution is comprehensively developed and optimized based on customer experience. If a business is looking for a global management solution with an advanced technology platform and deployment time twice as fast as other solutions, 1C:ERP is the perfect choice.

1C:ERP is a comprehensive business management solution, developed based on the modern SAAS model. With this solution, businesses can:

• Improve and optimize work processes: Connect activities of departments in the business, eliminate duplicate work and manual operations, and optimize processes.
• Real-time reporting system: Managers can create management reports according to needs at any time, ready for collaboration between companies and departments.
• Improve product and service quality: Data synchronization helps the system operate according to standards, quickly check inventory levels and shipping policies, optimize services and detect problems early.
• Protect commitments, enhance security: Encrypt data and strictly decentralize, record changed data versions, ensure transparency and operation history.
• Increase investment value efficiency: Optimize operating costs, easily control performance goals (KPI), department and employee performance, compatible with necessary software and flexible in use. service use.
• Quickly plan and control KPIs: Control business KPIs, estimate operational efficiency, achieve financial goals.

Understanding what SAAS is and the differences between SAAS and other cloud service models will help businesses make informed decisions, optimize resources and improve business performance. Hopefully this article has provided businesses with useful information and a clearer view of modern cloud technology solutions. If you need to use 1C:ERP solution, please contact 1C Vietnam for support.