What is enterprise SaaS?

Software deployment and configuration are quick and, in some cases, instantaneous. There is no need to spend time configuring or patching the software, as this is all handled ahead of time by the SaaS vendor.

Release management by the host company leads to minimal impact on the application and its availability. Software is always up to date when users need to access it.

SaaS reduces the need for additional IT staff who oversee system administration, business intelligence, and databases. Current IT staff can be employed on other, more-demanding projects, rather than applied to software house-keeping and maintenance chores.

Although software always demands dedicated servers and other hardware, SaaS eliminates the need for businesses to keep and maintain said hardware onsite. Instead, the SaaS service provider handles all tasks associated with hardware themselves. Users need only an internet-capable device to enjoy full software availability.

The burden of successful SaaS management and deployment is on the back of the SaaS vendor. This increases the productivity of an organization that uses the software, and improves the reliability and security of the application.

While there aren’t specific standards, there are key considerations when implementing SaaS.

The implementation phase of SaaS also addresses data security. It’s important for SaaS providers to incorporate robust security measures during implementation to curtail organizational fear of their data being stored off-premises. Elements that should be taken into consideration include: data privacy, data ownership, security patch management, user and identity management, and compliance.

Training options for users need to be considered, as a lack of user understanding for SaaS options can hinder user adoption. This can lead to delayed revenue for SaaS services when pay-as-you-go models are in use.

Typically, enterprise software is software that is purchased and installed on an enterprise’s servers, whereas SaaS is software that is rented, hosted in the cloud, and accessed through the internet. Distinguishing factors:

More traditional enterprise software allows the opportunity for customization, as the enterprise owns the software and has options to address their needs. SaaS software is usually less customizable, as it is limited to the tools that are built-in for a multi-tenant environment—too much customization would change the database and how it is being used by other organizations.

SaaS is a multi-tenant environment, and too much customization can create a lot of processing overhead. Too much processing overhead can affect the clients who are also using the database—thus, SaaS solutions tend to be limited in the type of queries and reporting for users.

Although many organizations are hesitant to leave their data security in the hands of SaaS vendors, the reality is that SaaS businesses depend on their ability to protect sensitive organizational and customer information. As such, these vendors invest heavily in security technologies, often beyond what is available to most stand-alone businesses. And with the addition of dedicated security teams and near-immediate patching and updates to counter new threats and vulnerabilities, SaaS demonstrates a reliable security option for most users.

SaaS systems may not be able to perform all of the functionalities that an organization would require, whereas enterprise software tends to offer more customizability and functional options.

Enterprise software usually charges for software licensing, maintenance, and customization services. SaaS pricing models generally consist of a monthly fee for services and use. Purchasing enterprise software is much more costly up front. On average, SaaS costs take approximately seven years to catch up to the cost of enterprise software.