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To maintain data security and privacy, each tenant’s application data, user data, system data and custom configurations are segregated from those of other customers. SaaS applications are accessible to any customer with an internet connection and an internet-connected user device. SaaS applications typically run in any web browser and on any computer or mobile device, but they often run more effectively on mobile phones and tablets. And in some instances, SaaS applications can offer or require a dedicated thin client, a lightweight computing device that runs remotely on resources stored on a central server. Compared to traditional software, SaaS offers businesses of all sizes—from startups to massive global organizations—ease of access, faster time-to-value, reduced management expenses and predictable costs. Software as a service (SaaS) is the cloud computing model that makes it efficient for companies to deliver software and easy for consumers to use software.

What is software as a service (SaaS)?

Unlike most self-hosted software products, only one version of the software exists[citation needed] and only one operating system and configuration is supported. SaaS customers have the abstraction of limitless computing resources, while economy of scale drives down the cost. SaaS architectures are typically multi-tenant; usually they share resources between clients for efficiency, but sometimes they offer a siloed environment for an additional fee.

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Building upon the foundation of traditional SaaS, AI-powered SaaS represents the next evolution. It seamlessly integrates artificial intelligence into cloud-based applications, unlocking new levels of intelligence, accomplish automation, and personalized experiences for users, all while retaining the core benefits of the SaaS model. AI is rapidly becoming a defining characteristic of leading SaaS solutions. Unlike traditional software, which requires a large upfront purchase and is manually installed and updated, SaaS is a subscription-based service. The software is hosted on the provider’s servers, and updates are automatic, which reduces the maintenance burden on a company's IT department.

What is SaaS?

You can customize the software to suit your particular requirements without infrastructure costs. That data flows, usually through an API, into the application’s database(s). So even though there are multiple customers’ data held in a database, that information is secured so it doesn't mix with other customer data. When a customer accesses the application, it uses identifiers (such as a username and password) to understand what data to access. The application then combines the data and app into an "instance" which is what the user sees when they interact with the software.
There are no specific software development practices that distinguish SaaS from other application development, although there is often a focus on frequent testing and releases. SaaS has become the dominant software model in the 21st century because it helps companies operate with increased ease, intelligence, and quality. The next generation of SaaS will continue to help your business stay ahead of the competition by delivering more capabilities to employees and customers — efficiently and cost-effectively. SaaS is one of three main traditional models for cloud computing, alongside Platform as a Service (PaaS) and Infrastructure as a Service (IaaS).
With SaaS, businesses only pay for the software they use often on a monthly or annual subscription basis. The subscription model is advantageous as it allows businesses to access cutting-edge software without upfront costs. Additionally, the software can be accessed from anywhere, enabling remote work and collaboration, which is especially important in today’s dynamic business environment. Infrastructure as a Service (IaaS) provides services for networking, computers (virtually or physically), and data storage. Using IaaS delivers the highest level of flexibility and management control over your IT resources, and is similar to existing IT resources. You can integrate third-party SaaS applications with other platforms and systems using APIs.