According to SaaS Mag, with increased adoption specially of Salesforce, Software as a Service industry, is on a rise and is expected to be more than $130 billion industry by 2020. SaaS is referred to as a software distribution model in which a service provider hosts the application and makes it available for the customers over the internet. There are three main categories of cloud computing:
- Infrastructure as a Service (IaaS)
- Platform as a Service (PaaS)
- Software as a Service (SaaS)
SaaS is similar to ASP (Application Service Provider) and on demand computing software delivery models. The SaaS model where the provider hosts the client’s software and delivers it over the internet to an approved set of users is like ASP. The on-demand software model of SaaS refers when the provider gives clients network-based access to software. The source code of the application is same, and it is specifically created for SaaS distribution. When the new functionalities are to be rolled out, it is done for all users. Data storage again depends upon the type of agreement the provider has with the customers. Customers can opt data storage locally, in the cloud or both locally and in the cloud. Organizations can also integrate other software with SaaS applications using APIs.