Cloud computing provides a service called Software as a Service (SaaS). This article explain about importance of Software As A Service (SaaS) for efficient cloud computing in the business. SaaS is main strategy of technology companies to run its services because of easy to access and become more popular because of its ability to distribute a service directly to users via the internet. This article also discusses the functionality, efficiency, advantages, disadvantages, and architecture of SaaS application.

Keywords : Cloud Computing , Software as a Service, Business Solution

Kontributor :

Rifa Hasna


Cloud is no longer looking as a tool but is used to achieve their business goals. Significant changes due to the cloud's appearance. Companies or businesses have evolved from simply storing personal organizational data to moving all their data to the cloud. Cloud computing is central data and application management formed from combination between the development of computer technology and the utilization of the internet. The advantages of cloud computing are more flexible, efficient, effective and dynamic where the management of services and data is manage by the organization itself . Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software-as a Service (SaaS) are the three main services by cloud computing. In this paper will discuss about definition software as a service, history, and why SaaS important for a business nowdays.


Cloud computing is a common concept that uses the internet to provide users computing needs and where the information is permanently stored. It is a computational method whereby information technology is used as a service, so users can access it over the internet whenever and wherever. Cloud Computing terminology divided by 3, they are as follows :

  1. Private Cloud
    Private cloud is service of cloud computing which is provided to meet internal needs of the organization. Department of IT will serve as Service Providers and other departments become users. IT department responsible for the services provided to operate properly in accordance with quality standards that have been determined by company. Advantage of private cloud is data security is assured because the companies manage it by themselves. However, there are disadvantages of this terminology : big investment, because the companies prepare the infrasctructure by themselves and requires labor to maintain and guarantee service well.
  2. Public Cloud
    Public cloud is service of cloud computing provided to the public. Example of public cloud are Windows Live Mail, Twitter, Facebook, GoogleMail, SalesForce, Office365, Adobe Creative Cloud, and etc. Disadvantage of this cloud are depending on the quality of the internet service and not all service providers, ensuring the security of user data.
  3. Hybrid Cloud
    Hybrid cloud is combination between Private Cloud and Public Cloud which is implemented by an organization or company. In Hybrid Cloud, we can choose which business process moved to private cloud and which business process moved to public cloud.


Since 1960s, IBM and other mainframe providers developed the computers to offering computing power and database storage to organizations such as bank and government offices. IBM 360 Model 67 is one of closest thing to visualization of IBM’s 60s SaaS. IBM 360 had 2MB RAM and the most advanced mainframe providers at that time.
In the 1960s, developing the software using the resources of mainframe providers like IBM was focused by organizations. PC of IBM could hook up to the play games, home TV set, process text and save a lot of words.
The personal computer market was starting to develop, business found that every employee should have their own computer. Since smaller and powerful computers like PC IBM eliminated wasted time and big room for computers.
During 1990s, centralized computing called Application Service Providers (ASP). ASPs provided service of hosting and managing specialized business applications to reducing the costs. USI and Futurelink Corporation are two of the world’s pioneers and largest ASPs.

The first Software as a Service pure superstar is Salesforce. Salesforce leading the way, this app was delivered over the internet and also become the most valuable SaaS company ever founded.


In the 21st century, business is heading towards providing cloud based solution. Software as a Service is becoming a new trend in the business world. IT-based solutions at a low cost are services offered by SaaS. It allows users to access data anywhere and anytime via internet connection. Storage and processing takes place within the cloud, it can access the same information and at the same time in the number of people. SaaS’ business model is growing very rapidly because they want to increase the utilization of Software as a Service (SaaS) in their companies.
The Software as a Service will continue to grow because of the ease to use SaaS application. Subscription business model sold through customers as a SaaS Product. The company can avoid the cost of capital and licences cost.


Fig-1: Software as a Service

For example is which companies focused on software as a service (SaaS). Salesforce is company that replace traditional CRM software with CRM Cloud, so it can be accessed anytime and anywhere. Everyday, more than 150.000 companies use Salesforce as a number 1 platform of CRM in the world to increase employee productivity, team collaboration, customer and seller loyalty.


Fig- 2:

  1. Types of SaaS Platforms in Cloud Computing
    Many companies want to become leaders by utilizing SaaS application. Creating a SaaS version of their product has been done by some companies, even companies that are not focused on this service model are becoming interested in offering customers a SaaS version. SaaS can be divided into three categories :
    • Packaged Software
      Packaged Software included : supply chain management, financial management, human resources, and customer relationship management. Managing employee’s salaries, benefit and annual performances review are offered by this package software.
    • Collaborative Software
      Market area is dynamic because availability of internet, and the teams are located all over the world. All of platforms move to cloud. For examples : document collaboration, project planning, Web conferencing, and email.
    • Enabling and Management Tools
      These are about development tools that needed when creating a SaaS platforms. Also about testing, monitoring, and measuring that a customer and developer need. Then consider the compliance issues related to the use of the software.
  2. Architecture of Software as a Service
    The software as a service (SaaS) takes advantage of service-oriented architecture to connect each other. Each software can act as a service provider, through which a public broker may show its functionality to other applications, data and functions of other services may be combined. This app is made for service providers and users in order to make the maximum benefit out of it. Required system architecture that supports peak user demands and ability to process transactions in large quantities. Therefore, the software must meet certain requirements to work on this model. Designing apps well to maintain and provide scalability and convenience for traditional desktop users.

    There are 4 models of SaaS maturity :

    • Ad Hoc/ Custom (Pseudo SaaS)
      Ad Hoc/ custom level is the first maturity level which is similar to Application Service Provider (ASP) in the 1990s. Customized applications that are hosted and on the server because each customer has its own version. This level is useful when converting an existing client server architecture. Reduce maintenance costs also because it does not require a system administrator.
    • Configurable (Quasi SaaS)
      This second level is the vendor hosting a separate instance of the app for each customer or tenant. Different users or tenants using the same application help cloud providers to identify customer needs by providing detailed configuration options, so that they can retain the common core of the application code. Although each code is identical, each instance remains isolated from the other.
    • Configurable, Multi Tenant Efficient (Semi SaaS)
      The third level, it is well known for sharing resources across users or tenants but can still distinguish the data and needs of each user. A single instance is run by the vendor to serve every customer, with configurable data. Eliminate the need to provide server room, the use of computing resources more efficient than the second level.
  3. Scalable, Configurable, Multi Tenant Efficient (True SaaS)
    The last level of maturity, using application resources efficiently such as optimizing lockout duration, sharing pooled resources such as network connections, referencing data references and database partitions.


  4. Advantages of SaaS
    Advantages of Software as a Service (SaaS) are as follows :
    • Lower costs
    • Less Hardware
    • Easy Maintenance
    • High Customization
    • Scalable Applications
    • Easy to integrate and collaborate
    • Without complicated upgrade process
  5. Disadvantage of SaaS
    • Connectivity Requirments
    • Security Issue
    • Total Dependency on Internet
    • Lack of Control
    • Limited Range of Applications


The software began to sell in large numbers. Licenses are purchased by customers to be able to use the software, then install on the hardware and the user can control. There are three types of IT infrastructure components in the company: software, hardware, and professional services. Software is the most important component because it can help achieve the goals of the company or organization. Professional hardware and services can help software function and produce results that organizations or companies need. Many companies invested in hardware and professional services than software. However, there are advantages for the company if they invest their capital to the software. They only pay a subscription for the software. Because software can help them achieve corporate or organizational goals directly.
Software as a service (SaaS) is a type of cloud computing that is increase users. Powerfull and efficient Application Integration The Programming Interface (API) is one of the advantages. The cloud providers need to utilize their resources efficiently to meet the evolving needs of the Business from day to day. Businesses also need to update new speed services and applications. APIs can reduce the additional costs incurred in developing new applications.
Since last few years, software vendors began to introduce Software as a Service (SaaS) profits in business. Scalability, on demand capacity, pay-per-use models, infrastructure management, on how to use cloud computing for better customer service & more efficient business operations described by software vendors.
SaaS only deals with Customer Relationship Management (CRM), Salesforce Automation, and Web Content Management. However, now the company has developed SaaS as their business solution. Human Capital Management, Financial Reporting, Sales and Marketing, Customer Support, Asset Management Systems, and etc to be developed by Apogaeis.
SaaS is indeed the right solution for business because of low cost and not worry about future business needs. There are some solution that can make business operate optimally and they are as follows :

  1. Latest Features
    It is the latest feature for business applications and can help employees work smoothly. Cloud Platforms always introduce new innovations and optimize information for service users. The SaaS solution is automatically upgraded so that user data is safe and usable. It can also help find solutions to your business problems.
  2. Reduced Application Cost
    The most important advantage of SaaS is that it requires low application costs. Companies can invest capital in other areas. SaaS business model is subscription-based and also offers solutions that are needed by users. Whenever and wherever the user can control his business. Saves time, effort, cost and lowers investment risk. Apogaeis can focus users on core jobs, set up business strategies, focus on sales, and customer satisfaction.
  3. Flexibility both for your Business and Users
    Flexibility is an important aspect. Flexible businesses will have their own competitive advantage. Business flexibility is defined as Approach to new applications, additional features, system enhancements, and additional users.
    SaaS applications are designed to integrate users in working together. Information can also be shared from any device. This SaaS allows users to access flexibly (from anywhere and anytime), changes are automatically saved in the platform and can be accessed again when opening them.
  4. Collaboration
    SaaS applications allow more than one user to work at the same time with the same application to work on the same document. Once the document is done, it can be saved immediately without fear of data disappearing. For example Dropbox, one of the best cloud storage.
  5. Less Risks
    Maximize security by using cloud-based apps. All data will be stored in the clouds even though the device where we access is lost or left behind. While there is internet, then users can access data in the cloud more easily.image


Cloud Computing and Software as a service have an important influence on business. Service usage depends on internet speed. Cloud-based business applications are in great demand because they have a low cost and a number of clear business advantages. Companies looking for services that have high data security devices, solutions offered by the Information Technology (IT) Department is Software as a Service (SaaS). SaaS helps businesses operate optimally and more flexibly. There are some cloud-based applications and can facilitate the companies or organization in achieving their goals. For example salesforce, mailtarget, NetSuite, and etc can help them in operate their business.

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