The definition of SaaS
In the field of information technology, we usually divide the user types into “To B” (To Business) and “To C” (To Customer), which is often referred To as “enterprise oriented” and “individual oriented”.
SaaS is defined as “software-as-a-service” and does not describe whether it is To B or To C. The broad definition of SaaS is both To B and To C, and SaaS cannot be simply understood as SaaS = To B.
Common SaaS products
Traditional software delivery models
Traditional software delivery processes
In the past, if you were a person in charge of an enterprise, the company needed to purchase a set of ERP or financial software and other solutions, which required the following processes:
I need to consult with IBM and provide requirements description. IBM will provide a solution and arrange financial staff to pay for the software after the solution is determined. After that, IBM will start research and development. Then companies need to buy their own servers, databases, and set up the hardware to install software. After that, IBM personnel came to install and debug the software, and ensured that the whole software could run. Finally, the software could be put into use officially, including the training of internal software use. This is a set of process of software delivery in the past.
Advantages and disadvantages of traditional software delivery
- advantages
- Absolute data private
The software is installed in the place designated by the customer company, which has 100% control right
- disadvantages
- High maintenance costs
Continuous investment of personnel and resources is required to maintain the normal operation of the system, software and hardware updates.
The SaaS model
In order to meet customers’ demand for data security + low maintenance cost, SaaS model emerged.
The characteristics of
- The cloud architecture
The hardware such as servers and databases provided by the SaaS company does not need to be deployed locally. The software is installed on the cloud server of the SaaS company. Companies that purchase SaaS services do not need to purchase their own servers and databases.
- The falling cost
Customers are not required to bear infrastructure costs and daily maintenance costs
- Pay for flexible
Customers pay monthly/annual fees rather than a one-off purchase
- Improved user experience
Subsequent upgrades are maintained by SaaS companies through data-driven iterations
In short, the SaaS model is that all the software related work is classified and prepared in advance, and customers come to directly choose their own services.
Contrast between the two
| The SaaS model | Traditional software delivery models | |
|---|---|---|
| Deployment way | The cloud architecture | Local deployment |
| Software payment method | Lease with monthly/annual payment | One-time investment |
| Maintenance costs | There is no | Hardware + software maintenance cost |
| Iterative way | Fast iteration speed | The iteration speed is slow and requires active upgrade |
