How does SaaS work?
There are two components of how SaaS works.
Vendors offer software products that solve specific organizational challenges, and the customer licenses the software.
SaaS vendors host applications and workloads on their own servers and databases, separate from the customers' own.
Once users subscribe to the solution, the vendor grants access to the applications through web browser user registration and login.
In other words, the vendor hosts and manages all the applications and data, and the customer subscribes (or pays) to access them in the cloud.
How does SaaS differ from other cloud computing models?
SaaS is often compared to other cloud computing models, such as Platform as a Service (PaaS) and Infrastructure as a Service (IaaS), as well as traditional on-prem software.
Although these models are interchangeable in some contexts, they differ in several aspects. When it comes to simplicity and user accessibility, a SaaS offering is unique.
One key characteristic of software subscription models like SaaS is that users only need to subscribe and log in to access applications, while the vendor handles all the complexities behind the scenes.
Here's a closer look at how SaaS differs from other models:
PaaS vs. SaaS
SaaS provides complete, ready-to-use applications while PaaS offers a framework for developers to build and deploy their own applications.
PaaS users control their application development but rely on the vendor for the platform and infrastructure. SaaS leaves no development responsibility for the customer to manage.
IaaS vs. SaaS
IaaS provides the underlying hardware, storage, and network infrastructure. That is in contrast to SaaS, which delivers fully functional software applications.
With IaaS, users must install and maintain their own software, offering greater flexibility but requiring technical expertise.
SaaS subtracts these complexities, letting users focus solely on utilizing the software.
DaaS vs. SaaS
Desktop as a Service (DaaS) and SaaS both provide cloud-based solutions but cater to different needs.
DaaS solutions, such as Parallels DaaS, offer a complete virtual desktop, while SaaS solutions deliver individual software via the cloud.
On-premises vs. SaaS
SaaS is hosted in the cloud and accessed through a web browser, whereas on-premises software runs locally on the customer’s servers or hardware.
With SaaS, the vendor manages updates, security, and infrastructure, while on-premises solutions require in-house IT teams to handle maintenance and upgrades.
SaaS also uses a subscription model, eliminating the significant upfront costs associated with on-premises software.
What is the role of SaaS in cloud computing?
SaaS is an important component of cloud computing and represents one of its three primary service models.
Imagine cloud computing as renting a car. You don’t need to own the car—you just pay to use it when needed.
SaaS is like renting a taxi. Not only do you get the car (cloud infrastructure), but you also get the driver (the software service) who takes care of the driving (updates, maintenance, etc.).
Unlike traditional software, which requires installation and maintenance on individual devices, SaaS provides a more streamlined and scalable solution, offering numerous benefits to businesses and individuals.
What are the advantages or benefits of SaaS?
SaaS has transformed how organizations operate.
The model has proven itself to be a beneficial choice for many B2B organizations in areas such as cost, automation, security, and scalability.
Cost efficiency
SaaS eliminates the need for expensive hardware and extensive IT infrastructure, reducing upfront costs.
Organizations can subscribe to only what they need, minimizing unnecessary expenditures.
Ease of implementation
With no installation or physical setup required, SaaS solutions can be deployed quickly. This streamlined process allows organizations to start using the software almost immediately.
Automatic updates and upgrades
SaaS providers handle updates and upgrades automatically.
This automation ensures that users always have access to the latest features and security improvements without any manual effort.
Data security
Top-tier SaaS providers often include robust security measures, such as encryption and regular audits, to safeguard business data.
These built-in protections can be more effective than on-premises alternatives.
Accessibility
Since SaaS is cloud-based, users can access their tools and data from anywhere with an internet connection.
That ensures flexibility for remote work and global collaboration.
Scalability
SaaS solutions grow with your organization, allowing you to scale up or down based on your needs. Adding users or features is often as simple as modifying your subscription plan.
Integrations
SaaS solutions are designed to integrate easily with other software and/or tools, enabling organizations to create a connected and efficient tech ecosystem.
Flexibility
SaaS solutions offer diverse features and customization options, allowing organizations to tailor the software to their specific needs.
This flexibility ensures that SaaS solutions remain relevant as the organization evolves.
Reduced time-to-benefit
As the setup and configuration time for SaaS is minimal, the solution allows organizations to achieve value faster compared to other software deployment models.
Simple proof-of-concept (POC)
SaaS makes it easy to trial a solution or conduct proof-of-concept projects.
That allows organizations to evaluate the software's value and effectiveness before committing to it in the long term.
Analytics and reporting
SaaS tools often come with advanced analytics and reporting features, offering organizations insights to drive data-informed decisions.
Security
Many organizations also turn to SaaS solutions due to its security features. SaaS solutions typically include advanced security protocols, such as firewalls and compliance certifications.
All of these features can help organizations mitigate risks and ensure regulatory compliance.
AI (artificial intelligence) integration
Modern SaaS options integrate AI capabilities, enabling automation, personalization, and smarter decision-making through predictive analytics.
Automation
SaaS solutions frequently include automation features that reduce repetitive tasks, enhance efficiency, and allow teams to focus on higher-value work.
What are some everyday use cases for SaaS at businesses or organizations?
SaaS tools play a critical role in modern businesses by streamlining processes, improving collaboration, and driving efficiency.
Here are some of the most common use cases for SaaS in B2B environments:
Team collaboration tools
Platforms like Slack and Microsoft Teams make it possible for teams spread out over different locations to communicate and collaborate.
These tools often integrate with other software, creating a centralized hub for productivity.
Customer Relationship Management (CRM) tools
SaaS CRM platforms like Salesforce help organizations manage customer interactions, track sales pipelines, and analyze customer data.
These tools improve relationships and help companies achieve better customer satisfaction.
Lead management
Applications such as Mailchimp provide businesses with tools for email marketing, lead nurturing, and campaign analytics.
These solutions help organizations generate and manage leads more effectively.
Online meeting tools
Platforms like Zoom and Microsoft Teams make virtual meetings effortless, enabling organizations to connect with clients and colleagues worldwide.
They offer features like video conferencing, screen sharing, and recording for streamlined communication.
Accounting software
SaaS accounting tools, such as QuickBooks and Xero, simplify financial management by automating tasks like invoicing, payroll, and expense tracking.
These platforms ensure accuracy and save significant time for finance teams.
Project management tools
Solutions like Asana and Trello help businesses organize tasks, track progress, and collaborate on projects. They improve transparency and ensure teams stay aligned on objectives.
Human Resource Management (HRM) Tools
SaaS HRM platforms like BambooHR or Workday assist with recruitment, onboarding, payroll, and employee performance tracking.
E-commerce platforms
Services like Shopify and BigCommerce empower organizations to set up and manage online stores with ease.
These platforms handle everything from product listings to payment processing and order tracking.
Marketing automation
Tools like HubSpot and Marketo automate repetitive marketing tasks, such as email campaigns, social media scheduling, and analytics reporting.
This automation allows marketing teams to focus on strategic initiatives.
File storage and sharing
Cloud storage solutions like Google Drive and Dropbox provide secure and scalable ways for organizations to store and share files.
These tools support remote access and enhance collaboration across teams.
IT service management
SaaS platforms such as ServiceNow help businesses manage IT services, troubleshoot issues, and optimize infrastructure. That improves IT efficiency and supports faster problem resolution.
Cybersecurity solutions
SaaS cybersecurity tools, like CrowdStrike and Okta, protect organizations against digital threats by offering services like endpoint protection, identity management, and threat detection.
Learning Management Systems (LMS)
Platforms like Canvas and TalentLMS allow organizations to manage and deliver training programs. These tools are widely used for employee development and compliance training.
Discover how Parallels RAS can streamline your virtual application delivery and desktop management, enhancing productivity and collaboration across your organization.
How do you deploy SaaS or SaaS applications at your organization?
If you're looking to deploy SaaS applications with Parallels RAS, these are the steps to follow:
Choose your deployment environment
SaaS isn't a one-size-fits-all solution.
You need to carefully consider whether you want to deploy on-premises on your own servers, utilize a cloud provider, or go for a hybrid approach combing both.
Install Parallels RAS
Download the Parallels RAS software directly from Azure Marketplace if you are going for a cloud-based deployment.
Configure application publishing
Once installed, navigate to the Parallels RAS management console .
From here, you can add the SaaS application of your choice and set up settings like access permission and user groups.
Set up user access
Control who can access each application(s) by defining user credentials and authentication methods.
Optimize performance
When all of this is set up, it is recommended that you consider how to best optimize the performance of your application delivery.
Considerations include adjusting settings like load balance and scaling based on the expected usage.
Resources
Strengthen SaaS security with Parallels Browser Isolation
Learn how isolating web activity from user devices can protect your data and simplify SaaS security.
SaaS vs Cloud Based: Understanding the Difference
Learn more about how SaaS and cloud-based compare, their strengths, and how to choose which one suits your organization.
This on-demand webinar offers practical advice on transitioning from legacy applications to SaaS and an in-depth cost/benefit analysis.
Take the next step
Parallels Workspace Solutions empower your team to securely access business-critical applications and desktops—anytime, anywhere, on any device. With a focus on flexibility, security, and user experience, Parallels ensures smooth access to workspaces without compromising IT control. Experience first-hand how modern application and desktop delivery can transform the way your organization works.