FAQ: Everything You Need to Know About SaaS

Software-as-a-Service (SaaS) is the dominant model for software delivery today, but it can still be a confusing topic. This FAQ provides clear answers to the most common questions businesses have about SaaS.

What is SaaS?

SaaS stands for Software-as-a-Service. It's a way of delivering software over the internet on a subscription basis. Instead of buying and installing software on your own computers, you access it through a web browser. The provider hosts and maintains the software on their servers. Read our full Beginner's Guide to SaaS for more detail.

What are the main benefits of SaaS?

• Lower Upfront Costs: You pay a predictable monthly or annual subscription fee instead of a large upfront license fee.
• Accessibility: You can access the software from anywhere with an internet connection.
• No Maintenance: The provider handles all updates, security, and maintenance.
• Scalability: It's easy to add or remove users as your business needs change.

Is SaaS secure?

Reputable SaaS providers invest heavily in security. They often have dedicated security teams and undergo regular audits that a small business could not afford. However, it is crucial to choose a vendor with a strong security posture and to understand their data policies. Read more about SaaS security best practices.

What is "multi-tenancy"?

Multi-tenancy is a core concept in SaaS architecture. It means that a single instance of the software and its underlying infrastructure serves multiple customers (or "tenants"). The key challenge is to ensure each tenant's data is securely isolated from the others. Read more about the challenges in SaaS development.

What's the difference between SaaS, PaaS, and IaaS?

These are the three main categories of cloud computing:

• IaaS (Infrastructure-as-a-Service): The most basic level. The provider offers virtualized computing resources, like servers and storage (e.g., AWS EC2).
• PaaS (Platform-as-a-Service): Provides a platform for developers to build and deploy applications without worrying about the underlying infrastructure (e.g., Heroku, Firebase).
• SaaS (Software-as-a-Service): Provides a complete, ready-to-use software application (e.g., Google Workspace, Salesforce).

Should I use an off-the-shelf SaaS product or build a custom one?

This depends on your needs. Off-the-shelf products are great for standard business processes. If you have a unique workflow that gives you a competitive advantage, a custom-built SaaS application is a better long-term investment. Read our full comparison: Custom Software vs. Off-the-Shelf.

How are SaaS products typically priced?

Common pricing models include per-user pricing, tiered pricing (with different feature sets), and usage-based pricing. The "freemium" model, which offers a free basic version, is also popular for user acquisition. Read our guide to SaaS pricing strategies.

Have more questions about how SaaS can help your business? Contact the experts at NovaTask for a free consultation.