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What is SaaS cloud computing?

What is SaaS cloud computing?

The full form of SaaS is Software as a Service. This computing is available as a software application that runs all the functionalities of an eCommerce business over the internet. You just need to make an online account on the respective cloud computing platform. All the data of the eCommerce store will be saved and managed on cloud computing software. There are vast categories of tools available in this computing starting from entertainment tools like Netflix to advanced tools.

Application, runtime, data, virtualization, operating system, middleware, server, storage, networking. These are some of the functionalities offered in the SaaS cloud computing model.

SaaS cloud computing model operates in more than 100 countries. In the UK only 2% of eCommerce businesses do not use the cloud. The most common trial period in SaaS is a 30-day free trial. On average, every eCommerce uses 34 different types of SaaS applications. VK pay is the leading company in SaaS cloud computing. They are estimated to earn $580 million by the end of 2021.

“People were doing business with one another through the Internet already, through bulletin boards. But on the Web, we could make it interactive, we could create an auction, we could create a real marketplace. And that’s really what triggered my imagination if you will, and that’s what I did.”

-Pierre Omidyar, Founder of eBay.

Advantages of SaaS cloud computing

Scalable usage

In SaaS cloud computing the functionalities are scalable so you can measure your usage and pay accordingly. SaaS cloud computing offers vertical scalability, which means the customers have the option to access more services, fewer services, or on-demand tools.


Rather than buying new software customers can opt for auto software updates and security patches. This leads to a cost reduction in hiring IT staff.


As the service is on the cloud you can have access to the service around the globe regardless of location or time. Only availability of internet is a must thing. Due to this feature companies also outsource their SaaS offerings.

Flexible payments

Instead of buying software and hardware tools physically the customer just has to login into his SaaS software. The pricing of this model is charged according to services used so there is flexibility in payment. The service charges can be paid in advance also. If you are paying in advance then there exists a contract among the parties. 48% of the companies have an average contract of one year for the SaaS offerings. 14% of the companies have month-to-month contracts on SaaS offerings.


SaaS offerings are highly customizable. This offering can also be integrated with different business tools. SaaS offerings have vast varieties of products to choose from. You can also integrate products with one another for optimized use.

How does SaaS work?

SaaS is delivered through the internet. A software provider will host the servers at his data center or hire an ISV to provide services like data servers, networking, and computing. SaaS offerings run on the multi-tenant model which means that the single instance will be running on the SaaS host and that the single instance will be accessible to multiple tenants. There will be a number of tenants using one infrastructure and their data will be segregated.

This derives that the host has control over the maintenance, updating, bug fixes, this runs the system faster and easier. Rather than having to implement changes in multiple instances, engineers can make necessary changes for all customers by maintaining only one-sided instances.

Further, this also allows the tenant to choose from a pool of services without compromising speed, privacy, and security.

SaaS, computing subscription includes maintenance, compliance, and security services. However, many computing software also offers out-of-the-box solutions in their premium subscription. You can have their basic software installed and run within a matter of hours only. 

The SaaS market is formed by a variety of vendors like teach giants like AWS and Google. There are numerous different types of products available in SaaS offerings. There are different business fundamental offerings in SaaS like customer relationship management, sales management, emails, human resource management, billing, and collaboration. The products are available according to industries. The product offered specific industries like hospitality, horticulture, e-learning are known as vertical SaaS products. 

Examples of SaaS products are Netflix, Hubspot, Zendesk, Anydesk, Slack, DocuSign, Mailchimp, and Shopify. 

Here at CodeEpsilon, we work upon all of this software. We are offering excellent services in the SaaS cloud computing model. We have successfully completed many projects on this model. Check out our portfolio. Let’s grow your E-Commerce platform together with unique features and an experienced team of developers. Contact Us.

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