What does SaaS mean?

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Last Updated on 17th June 2019

The IT industry is famous for its acronyms. DR, UPS, even IT itself. One that is beginning to be talked about more and more is SaaS. SaaS stands for Software as a Service. Even without the acronym, this might not seem very illustrative to many. We thought that in this blog we would look at Software as a Service, explain what it means and how it could impact what you are trying to achieve.


What does Software as a Service mean?

We have explained what SaaS means but now it’s important to explain what the term ‘Software as a Service’ is alluding to. Software as a Service is where a software package is accessible via the Internet or the ‘Cloud’. The concept is nothing new. We have been using SaaS products for years without realising it. Things like Hotmail, Spotify and Facebook are all Cloud based software products that we access via an Internet connection.

In a lot of cases, SaaS has made software more accessible to individuals and organisations. If you need to pay for a Software as a Service product then you usually need to pay on a subscription model for the license. For example, for your Spotify subscription you may pay £9.99 a month to be able to access its services. If you stopped paying the money then you would no longer be able to access it. A good example of a business SaaS product is Office 365. Office 365 is a Cloud based version of Microsoft Office. You pay per user per month for the license.

For businesses, SaaS is often a great move because it means that they can move from using capital expenditure to operating expenditure when it comes to funding IT. Instead of having to upgrade all out-of-date Office licenses every five years or so and having to budget for it, an organisation can just pay monthly and always have the most up-to-date software.

Benefits of SaaS

One of the first benefits of SaaS that not many people think about is time. In many cases, SaaS products just require you to log in to a browser to access what you need. You no longer need to deal with installation processes and any maintenance responsibilities. Updates are, in most cases, applied by the vendor themselves, leaving more time for the IT department to work on other things.

Another benefit that you can find with Software as a Service is the scalability that it can offer to organisations, especially if they are growing. Due to the pay-as-you go subscription models that are user-centric, it’s easy to add new licenses when new people arrive. If you need to change something, for example increasing or decreasing usage, it’s easy to deal with whereas with previous software purchase models you would have been stuck with what you had bought.

Compatibility is another benefit that comes with SaaS. In most cases, you can access Software as a Service products via your browser and logging in. By being able to do this it removes the compatibility issues that come with different operating systems and versions.

As previously mentioned, a real benefit of using SaaS products is the cost. Software as a Service products are perfect for your operating expenditure. You also don’t need to worry about the cost of upgrades as they are applied as they are developed. One of the great things about this software model is the accessibility it gives to smaller businesses. For example, Office 365 is used by organisations like Barclays Bank and the Ministry of Defence and small businesses with just one or two employees. The pay-as-you-go subscriptions have enabled powerful technologies to be accessible to all.


There are many benefits of using Software as a Service in your organisation. We hope that in this blog we have explained SaaS, what it means and how it can help you. If you have questions or want to know more, please give us a call on 01675 469020 or email hello@acutec.co.uk.