← Blog - Main page

What is SaaS (Software as a Service)?

1.10.2025
E-Commerce

Technology is constantly evolving, and so are the ways we use software. More and more often, we encounter the term SaaS – a model of delivering software as a service. Whether you use online office tools, communication apps, or customer relationship management systems, chances are you have already used some form of SaaS without even realizing it. But what does SaaS actually mean, and why is it so popular? In this article, we will explain how SaaS works and explore its advantages and disadvantages.

What does SaaS mean?

SaaS stands for Software as a Service. It is a model of delivering software over the internet, where users rent access to applications instead of purchasing and installing them on their own servers or computers.

Typical examples of SaaS applications include:

  • Google Workspace (formerly G Suite) - Online tools for document management and email.
  • Microsoft 365 - An office suite available over the internet.
  • Salesforce - A CRM system for managing customer relationships.
  • Slack - A tool for team communication.

How does SaaS work?

SaaS applications are hosted on remote servers managed by the service provider. Users access them via a web browser or a dedicated application.

Key characteristics of SaaS:

  1. Cloud infrastructure - Software runs in the cloud and users connect to it via the internet.
  2. Subscription model - Services are typically offered on a monthly or yearly subscription basis.
  3. Automatic updates - The provider takes care of maintenance, security, and updates.
  4. Scalability - Capacity can be easily increased or decreased based on needs.

Advantages and disadvantages of SaaS

Advantages:

  • Low upfront costs - No need to invest in expensive hardware or licenses.
  • Easy accessibility - Just an internet connection and a web browser are required.
  • Automatic updates - You always have the latest version of the software.
  • Scalability - Services can be adjusted according to the company’s growth.

Disadvantages:

  • Internet dependency - Without an internet connection, access is impossible.
  • Data security and privacy - Storing sensitive data on external servers can be risky.
  • Limited customization - Some applications may not offer full customization options.

Why is SaaS so popular?

SaaS offers companies the ability to quickly deploy software solutions without significant upfront investments. This makes it an ideal choice for both small startups and large corporations. Additionally, services can be easily integrated with other tools and enable remote work.

Conclusion

SaaS is an excellent choice for companies seeking modern and flexible software solutions without the hassle of maintenance. Thanks to subscription models and scalability, businesses can optimize costs while staying technologically up-to-date.If you are considering adopting SaaS in your company, focus on service quality, support, and security. Choose providers who offer transparent terms and high-quality customer service.

Sign up for our newsletter

and get access to the news first.
Your email has been added to the newsletter database.
Please try again.