Why is Software as a Service (SaaS) Tied So Closely to the Public Cloud?

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The advent of cloud computing has opened new doors in the world of Information Technology and has redefined how we work, play, conduct commerce, and live overall. But admittedly, the changes can be overwhelming and challenging to keep up with.

One of the more eyebrow-raising aspects of cloud computing is how many services are becoming completely virtual, such as infrastructure, platforms, software applications, and more. It’s the topic of virtually-delivered software applications that brings us here today.

Why is software as a service (aka SaaS) tied closely to the public cloud? Let’s explore and break down the reasons, and who knows, maybe we’ll learn something interesting that may prove very useful somewhere down the road.

But first, let’s lay down some fundamental definitions.

What is Software as a Service? Say goodbye to those piles of software boxes and their CD-ROMs.

The cloud offers IT-related vendors the ability to expand their services significantly by providing new delivery models. For instance, rather than investing in a physical infrastructure onsite, a business can select an Infrastructure as a Service (IaaS) and have it all done off-site and on the cloud.

And there are so many more cloud-based delivery models. For example, you can get a Platform as a Service (PaaS), Function as a Service (FaaS), Container as a Service (CaaS), and of course, Software as a Service. Maybe we'll explore those other service options sometime soon, but we're devoting our attention to the software model for now.

Software as a service, also called “on-demand software,” is a centrally hosted provider of software that is licensed on a subscription basis. Oftentimes, this takes the form of a website and/or mobile app which is easily accessible from many devices. The vendor typically handles everything: applications, data, middleware, networking, runtime, servers, storage, and virtualization.

SaaS examples include DocuSign, Dropbox, G Suite, Salesforce, Slack, Microsoft Office365, and ZenDesk. In addition, any software available by a third party via the Internet falls into the SaaS category.

And since software is forever being upgraded and updated, customers get the luxury of sitting back and letting the vendor do all the heavy lifting. Then, when the customer accesses the application, they know they're getting the most up-to-date version.

The Public Cloud Defined You’ve probably had more exposure to it than you think!

There are three basic cloud computing models: private, public, and hybrid. Like in the case of the services mentioned earlier, maybe in another article we’ll explore the different models, comparing and contrasting them at length.

The top three public cloud providers are Microsoft Azure, Amazon Web Services (AWS), and Google Cloud.

The public cloud is defined as cloud computing provided through the Internet and the resources (e.g., hardware, software, storage) shared by many organizations and customers, or “tenants.”

The public cloud’s advantages include:

• Easily scalable to fit your company’s demands. Instead of being tied to a rigid, static resource, you can add or remove users, depending on if your company is growing or downsizing.

• Cost-effective, since you pay for only what you use. This pricing model is related to the scalability perk and can include things like processing time and storage.

• Reliable, since the hosts use an entire server network. If one server fails, there are backups.

• Zero maintenance; that’s the host’s job. It’s like renting an apartment; the landlord takes care of repairs and upkeep.

Companies that use the public cloud in one capacity or another include Apple, Pinterest, Evernote, Netflix, and GE.

Wait, the Public Cloud and SaaS Aren’t the Same? Although they’re related, these products are two totally different animals.

It’s easy to look at the public cloud and SaaS applications and say, “They both exist virtually, offered via a subscription model, and housed off-site. Therefore, they’re the same thing!” But no, they’re not. Granted, there are similarities, but cloud computing and SaaS are two separate entities.

Customers who use cloud computing can manage and customize any software app hosted on a third-party remote server. With SaaS, it’s more “what you see is what you get” (WYSIWYG). You’re subscribing to an already developed product, and your customization options are little to none.

Yes, both are virtual products, but one is a whole processing package that can include bundled applications, and the other is just an application or suite of applications. In other words, a software as a service product could be part of a public cloud bundle, but your SaaS subscription to, say, Creative Suite by Adobe doesn’t include access to public cloud services.

So Why Are SaaS and the Public Cloud So Tight? Sure, it’s a perfect fit, but why?

The public cloud service and SaaS delivery model are made for each other. More companies are expected to adopt a cloud-first strategy through 2021, thereby continuing the upward growth trend. Additionally, experts predict that the SaaS market will exceed $143 billion by 2022. So, we are looking at two different IT resources experiencing similar success and popularity. It’s hardly surprising that the two forces are linked.

One could argue that there’s a symbiotic relationship here. Both software as a service and cloud computing strive for higher numbers and increased acceptance. SaaS offers customers an easier way to use software, and the cloud gives users a more convenient, cost-effective method of acquiring processing power and data storage. These two elements create a mutual justification for the other’s existence!

But there’s more to this idea than just “we need each other.” Here are some solid reasons why this combination works so well.

• The public cloud compliments the SaaS model’s processing needs. The public cloud exists for companies who don’t want to allocate the resources, money, space, and personnel to running an in-house data center. Likewise, software as a service exists for people who don’t want to install and run applications on their in-house systems, preferring instead to run them virtually off-site. It’s a perfect match!

• Both resources are scalable. We’ve already touched upon this before with the public cloud, but it’s important to note that SaaS applications are scalable, too! And again, one feeds off the other. For example, if a business uses Salesforce but finds it needs to increase its subscription, it may find its platform demands correspondingly going up, and that’s easy to do. But thanks to the close relationship between SaaS and the public cloud, IT staff can get a good idea of exactly how great an increase in processing power and data storage they need. This close association cuts the risk of expanding too much.

• Both resources reduce user intervention/responsibility. Times are tough, and anything that can make things easier and less stressful is welcome. Offerings such as a public cloud computing subscription and a Software as a Service license make life easier for customers without having to sacrifice power, performance, and versatility. Instead of dealing with servers, computer rooms, and loading software discs into every computer, the virtual powerhouses of cloud computing and SaaS make the job easier.

• Both products help smaller businesses compete with the big guys. Public cloud computing and SaaS are powerful resources that would belong to the big companies in the old days. Nowadays, technology has advanced far enough to put these resources into the hands of considerably smaller businesses. Whether it’s an ambitious IT startup, a conventional small-to-medium company or even a “mom and pop” endeavor operating from someone’s garage, current cloud technology brings state-of-the-art resources to organizations of all kinds and sizes. Now the little guy can better compete with the big, sprawling corporations.

So, What’s Next? Okay, so cloud computing and SaaS are great. How do we apply this practically?

The good news is, software as a service offers consumers a vast choice of excellent applications, and the public cloud provides users with great processing/storage options. The bad news is, it’s still a lot to absorb. Companies today are faced with the intriguing dilemma of having too many good options. What do you choose?

That’s why there’s help out there. Business owners may not have the IT savvy necessary to figure out what kinds of resources their company requires, but professional consultants such as Remote Cloud Consulting have the know-how and experience to ascertain their cloud needs and help implement the perfect plan.

Trial and error is a costly and time-consuming process. Get a consultant in your corner and get a cloud implementation strategy that works right the first time! It’s a big, wonderful, crazy world out there with way too many choices. Let the professionals make your job easier, giving you more leverage to make your business competitive and value driven!

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