Software as a Service (SaaS) Explained in 5 mins

Summary

This script introduces Software as a Service (SaaS), the most popular cloud computing model, which allows users to access applications over the internet through a subscription. It contrasts SaaS with traditional software, highlighting benefits like cost efficiency, scalability, accessibility, and automatic updates without the need for IT expertise. Examples include GMail, Microsoft Office 365, and music streaming services, emphasizing SaaS's role in various business operations and its multi-tenant architecture for secure, shared resource usage.

Takeaways

• 💼 SaaS stands for Software as a Service and is a popular method of delivering software applications over the internet via a subscription model.
• 🌐 SaaS is one of the three main categories of cloud computing, alongside Infrastructure as a Service (IaaS) and Platform as a Service (PaaS).
• 🔑 SaaS eliminates the need for users to be developers or IT experts, as it provides software applications that are ready to use with minimal setup.
• 🛠 Traditional software models required users to manage, install, and upgrade software on local servers or computers, whereas SaaS simplifies this process.
• 🚀 With SaaS, users can quickly provision a server in the cloud and have their software ready for use within hours.
• 📧 Key examples of SaaS include email clients like GMail, productivity tools like Microsoft Office 365, and creative suites like Adobe Creative Cloud.
• 🔑 SaaS is widely used in various business operations such as communication, customer relationship management, billing, sales, human resources, and financial management.
• 🏢 SaaS operates on a multi-tenant architecture, where multiple users access the same pool of resources in a shared hosted environment.
• 💰 SaaS is cost-efficient as it reduces IT overhead costs and is typically consumed on a subscription basis, including support.
• 📈 Scalability is a significant benefit of SaaS, allowing users to scale resources horizontally or vertically on demand.
• 🌍 SaaS applications can be accessed from anywhere with a web browser and internet connectivity, facilitating a mobile workforce.
• 🔒 While SaaS is generally secure, there are regulatory considerations like GDPR in Europe that may require data to be stored locally.
• 🆕 Users of SaaS always have access to the latest version of the software, as updates and patches are automatically managed by the service provider.

Q & A

What are the three main categories of cloud computing?

The three main categories of cloud computing are Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS).

Why is SaaS considered the most popular and commonly used cloud computing model?

SaaS is the most popular because it allows users to access software and applications over the internet via a subscription model without needing to manage, install, or upgrade software on local servers or computers.

How does the traditional software model differ from the SaaS model?

In the traditional software model, users manage, install, and upgrade software themselves on local servers or computers, whereas with SaaS, these tasks are handled by the cloud service provider, and users access the software through the internet.

What are some examples of SaaS applications mentioned in the script?

Examples of SaaS applications include email clients like GMail, productivity tools such as Microsoft Office 365, Adobe Creative Cloud, and music streaming services.

How does SaaS facilitate business operations?

SaaS is used in various business operations such as communication and collaboration, customer relationship management, billing, sales management, human resources management, financial management, and enterprise resource planning.

What is the advantage of SaaS in terms of IT overhead costs?

SaaS is more cost-efficient because the cloud service provider maintains and manages the application, eliminating IT overhead costs for the user. It is typically consumed on a subscription-based model, which often includes support.

What does the term 'multi-tenant architecture' refer to in the context of SaaS?

In a multi-tenant architecture, multiple users access the same pool of resources within the stack, sharing the same hosted environment and servers, but with their own dedicated space for securely storing data.

How does SaaS support scalability for businesses?

SaaS supports scalability by allowing businesses to horizontally or vertically scale on demand, as the cloud service provider manages the infrastructure and resources needed.

What are the benefits of accessing SaaS applications from anywhere?

The benefit of accessing SaaS applications from anywhere is that users only need a web browser and internet connectivity to use the application, eliminating the need for installation or plugins, and allowing for mobility of the workforce.

How does SaaS handle data location requirements like GDPR in Europe?

For instances where data must reside in the same location as the user, such as with GDPR in Europe, SaaS providers offer solutions to ensure compliance with such regulations while maintaining data security.

What is the benefit of automatic software updates in SaaS?

Automatic updates in SaaS ensure that all users are on the same version of the software, eliminating the need for manual updates and reducing issues related to version incompatibility and patching.

Outlines

00:00

💻 Understanding SaaS: The Cloud Computing Phenomenon

This paragraph introduces Software as a Service (SaaS) as a prevalent method of accessing software applications over the internet through a subscription model. It contrasts SaaS with traditional software models, emphasizing the ease of use for non-developers and IT experts. The paragraph outlines the benefits of SaaS, such as cost efficiency, scalability, accessibility, and automatic updates. It also briefly touches on the multi-tenant architecture of SaaS, where multiple users share resources within the same hosted environment, and highlights the importance of data location compliance with regulations like GDPR.

05:02

🔍 Engaging with the SaaS Community and Resources

The second paragraph serves as a call to action for viewers to engage with the content by asking questions and seeking further information. It encourages viewers to like and subscribe for more videos on the topic, promoting continued learning and exploration of SaaS. Additionally, it mentions IBM CloudLabs as a resource for skill development and earning badges through free, browser-based Kubernetes labs, indicating a pathway for practical application and enhancement of SaaS-related skills.

Keywords

💡Software as a Service (SaaS)

SaaS refers to a software delivery model in which software is provided over the internet, on a subscription basis. It is one of the three main categories of cloud computing, alongside Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). In the video, SaaS is highlighted as the most popular and commonly used cloud computing model, emphasizing its accessibility to users who are not developers or IT experts. Examples of SaaS include GMail, Microsoft Office 365, and Adobe Creative Cloud.

💡Cloud Computing

Cloud computing is a technology that allows for the delivery of computing services—including servers, storage, databases, networking, software, analytics, and intelligence—over the internet. The video discusses SaaS as a part of cloud computing, emphasizing its role in delivering software applications over the internet. The other two categories mentioned are IaaS and PaaS, which provide infrastructure and platform services, respectively.

💡Subscription Model

A subscription model is a business model in which customers pay a recurring fee to access a company's product or service. In the context of the video, SaaS operates on a subscription model, allowing users to access software and applications without the need for upfront purchases or perpetual licenses. This model is contrasted with traditional software models where users manage, install, and upgrade software on local servers or computers.

💡Infrastructure as a Service (IaaS)

IaaS is a cloud computing model where users rent computing resources such as virtual machines, storage, and networking from a cloud provider. The video mentions IaaS as one of the three main categories of cloud computing, alongside SaaS and PaaS. IaaS provides the foundational hardware and software resources that enable users to build and deploy applications.

💡Platform as a Service (PaaS)

PaaS is a cloud computing model that provides a platform allowing customers to develop, run, and manage applications without the complexity of building and maintaining the infrastructure typically associated with developing and launching an app. In the video, PaaS is mentioned as a category of cloud computing that sits between IaaS and SaaS in terms of abstraction and service offerings.

💡Multi-tenant Architecture

Multi-tenant architecture is a software architecture in which a single instance of the software runs on a server and serves multiple customers. The video explains that SaaS applications often use a multi-tenant architecture, where multiple users access the same pool of resources within the stack, each having their own dedicated space to securely store their data.

💡Cost Efficiency

Cost efficiency in the video refers to the reduced expenses associated with using SaaS compared to traditional software models. The video highlights that SaaS eliminates IT overhead costs and is typically consumed on a subscription basis, which can be more cost-effective for businesses. This is contrasted with the upfront costs and ongoing support fees associated with on-premises software.

💡Scalability

Scalability is the ability of a system, network, or process to handle a growing amount of work, or its potential to be enlarged to accommodate that growth. The video discusses the scalability of SaaS applications, noting that users can scale their resources horizontally or vertically on demand, facilitated by the cloud service provider.

💡Access Anywhere

The term 'access anywhere' in the video refers to the flexibility of SaaS applications, which can be accessed from any location with an internet connection and a web browser. This is a significant benefit for businesses looking to mobilize their workforce, as it eliminates the need for local installations or plugins.

💡Data Localization

Data localization is the practice of storing data within a specific geographical area, often mandated by law. The video mentions GDPR in Europe as an example of a regulation that requires data to be maintained in the location where the user resides. This is relevant in the context of SaaS, where some users may need to ensure their data is stored locally.

💡Automatic Updates

Automatic updates in the video refer to the feature of SaaS applications where new versions of the software are automatically provided by the cloud service provider. This eliminates the need for users to manually update their software, ensuring that all users are on the same version and reducing issues related to version control and compatibility.

Highlights

SaaS is a widely used cloud computing model alongside IaaS and PaaS.

SaaS is the most popular cloud computing model due to its user-friendliness.

SaaS delivers software applications over the internet via a subscription model.

Traditional software models require local management, unlike SaaS.

SaaS allows for quick provisioning of software in the cloud.

Examples of SaaS include popular email clients, productivity tools, and music streaming services.

SaaS is utilized in various business operations including CRM, billing, sales, HR, and financial management.

SaaS sits at the top of the IT stack with the highest level of abstraction.

Cloud service providers maintain all layers of the stack in SaaS.

Users access SaaS applications through a multi-tenant architecture.

SaaS offers cost efficiency with no IT overhead and subscription-based access.

SaaS provides scalability with the ability to scale resources on demand.

SaaS applications are accessible anywhere with an internet connection.

Data location requirements may vary based on regulations like GDPR.

SaaS ensures high security and automatic updates, eliminating version control issues.

SaaS eliminates the need for manual updates and patching.

IBM CloudLabs offers free Kubernetes labs to grow skills and earn badges.

Transcripts

Unless you’ve been living under the rock the past  few years it is very likely you use Software as a  

Service, or SaaS, on a daily basis for business  and as a consumer. SaaS is one of the three main  

categories of cloud computing, Infrastructure as  a Service, or IaaS, and Platform as a Service,  

or PaaS. Out of the big 3 cloud computing models,  SaaS is the most popular and commonly used one,  

AND the great thing about it is you don’t have  to be a developer or an IT expert to use it!  

So, SaaS in a nutshell is a method of delivering  software and applications over the internet via a  

subscription model. This a game changer compared  to our traditional software model used prior to  

the emergence of cloud computing, where users  would have to manage, install, and upgrade  

software themselves on local servers or computers.  With SaaS you can simply provision a server for  

an instance in cloud, and in a couple of hours,  you’ll have your software or application ready for  

use. Some key examples would be the email client  you use such as GMail, the applications and tools  

you have on your computer, such as Microsoft  Office 365 or Adobe Creative Cloud, or even  

when you are jamming out to your favorite music  streaming service, these are all SaaS, providing  

productivity apps over the internet. SaaS is also  used in a wide variety of business operations  

today, such as communication and collaboration,  customer relationship management, billing, sales  

management, human resources management, financial  management, enterprise resourcing planning,  

you get the gist, the list goes on and on. So,  unlike our other cloud computing service models,  

SaaS is the very top of the IT stack and has the  highest level of abstraction. So, this means the  

cloud service provider will be providing and  maintaining all these layers for you in this  

stack. So, let's take a look what that might look  like and see how a user would typically consume a  

SaaS application. So I'm just going to go ahead  and just shift these other stacks over here and  

let's slide the SaaS deck right here. Okay. So,  our users would access a SaaS application within  

what we call a multi-tenant architecture, and by  tenant I mean user. So, you'd have multiple users  

all accessing the same pool of resources within  the stack. So it'd be the same hosted environment,  

same hosted servers where multiple users would  have their own dedicated space to securely store  

their data. There's a lot of benefits with this in  a SaaS application. So let's take a look at a few.  

So one you know right off the bat is it's much  more cost efficient compared to our other models  

because again, which is the overall theme of this  whole video, is cloud service providers would be  

maintaining and managing the application  for you. So, there's no IT overhead cost  

and a SaaS application is typically consumed on  a subscription-based model which is either on  

an annual basis or a monthly basis. And  that includes support typically whereas  

with our older traditional models, on-prem, you  would have a perpetual license where you'd have  

a pretty large up front cost and then you'd  have to pay for support on going separately.  

Two, scalability, right. So, you can horizontally  or vertically scale on demand because again that  

cloud service provider is going to be maintaining  everything for you. So if you need to add more  

databases, or you need more compute power they'll  take care of that for you on a has needed basis.  

Another benefit is you can access your  SaaS application anywhere which is a  

huge benefit right now especially if you  want to mobilize your workforce, right. So  

all you need is a web browser and internet  connectivity to be up and running with your  

SaaS application. There's no installation,  there's typically no plugins involved  

and you can no matter where you reside  geographically, you can always be up and running.  

Now I should say if you are looking for a SaaS  solution there are some instances where you do  

need to keep your data in the same location where  you reside. For instance, with Europe we have GDPR  

and by law you have to maintain your data  where you reside. So, there are going to be  

some instances like that, but for the most  part SaaS is a highly secure solution. And  

then last but not least, you always have a new  version, right. So, once again there's no need to  

update your licensing or update manually the new  version of your software because that's all taken  

care for you and it's automatically upgraded.  And this helps with a lot of wide range of  

issues typically if there's version control,  right. In the past you'd download software  

and then you might be operating with something  that's not compatible with a different version  

of that software. So, everyone's on the same  version of that software and you don't have to  

manually update and worry about patching and all  that junk, everything's taken care of for you. So,  

this is just a very quick overview of  Software as a Service. Thank you for joining.  

If you have questions, please drop us a line  below. If you want to see more videos like this  

in the future, please like and subscribe.  And don't forget you can grow your skills  

and earn a badge with IBM CloudLabs, which  are free, browser-based Kubernetes labs.