How SaaS and Cloud Service Differ from Each Other

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Recently the two terms: Cloud Computing and SaaS (Software as a Service) are getting very trendy worldwide. We hear about them every day because most of us are using this state-of-the-art technology. Even professionals generally utilize them interchangeably thus there is no wonder a lot of people are confused about or don’t know the difference. With the help of this blog, I will try to explain the difference between both of them.

Difference Between SaaS and Cloud Service

SaaS is cloud-based software, while Cloud computing is a kind of umbrella that is used to define many other technologies. It can be said that SaaS is a kind of Cloud Computing. So, how can we differentiate between SaaS and all different types of cloud computing?

SaaS is designed essentially for business purposes. It is a practical approach to accessing business services and software through any internet connection.

Cloud computing is the base for Software as a service, so it also can be termed SaaS, but it’s larger in scope than software as a service alone. Cloud computing covers all kinds of online software, not only the one used by businesses.

In the industry of cloud computing, SaaS is generally linked with on-demand apps that need a subscription. Hence if you desire to get those applications as well as data stored on the web you will require an internet connection.

The majority of large companies have employed cloud-based solutions and cloud computing has become the most widely implemented term in the present era. Many modern firms are now changing their business model to match well with this latest way of working. Rather than running applications through a desktop PC or on local servers, cloud computing has brought a revolution.

It facilitates businesses to host apps online and access them at any time, from anywhere. For instance: if you are a lawyer handling cases in a foreign country or a sales representative serving remotely, you can utilize cloud computing to use your data and send it to others without requiring to be in the workplace. In short, it improves productivity by providing convenience and flexibility.

Now let’s explore SaaS

Software as a Service is one of a kind of cloud computing service. The software is created, operated, as well as maintained by a SaaS development services provider who hosts it on their systems.

This implies that you don’t require to install or manage any software on your system, you only access any time & use the software. For instance, when you use Dropbox or Google Docs to work on docs with your team no installation is needed. This kind of software is generally seen as more viable for small businesses having limited IT staff since they are not needed to handle their servers and the maintenance and costs related to them.

Let’s differentiate Cloud Computing and SaaS with its pros and cons

Pros of Cloud Computing

Cloud computing facilitates small developers to offer a software application to their clients at a very reasonable cost. A lot of the mobile applications you run on your Android or iPhone interconnect with other consumers that are hosted in the cloud. Facebook employs cloud computing. Even Google can perfectly be termed as cloud computing because your search is managed by thousands of discrete servers at any moment based on global demand.

It’s not hard to create a traditional domestic solution in the cloud. A minimal rewriting is needed.

You generally don’t have important upfront hardware setup or purchase costs that are generally the instance with hosting. Similar to Hosting, you get redundancy, and data security and unlike hosting, you acquire almost boundless scalability.

Cons of Cloud Computing

Existing applications generally require some rework to correctly take benefit of the cloud.

It’s not very simple to create a cloud-hosted application and take it back on-premise because of the distributed feature of the architecture. Every application generally has its charges thus if you run many apps over the cloud, the charges can be steep as you don’t pay per server, but instead CPU power cycles or per unit of data used.

It’s also tougher for different applications that require integrated (such as CRM and ERP) solutions to operate in the cloud except both vendors work together to get this done.  Software providers can get this done, but it’s very hard for the end-users.

Pros of SaaS

SaaS services can be financially striking. You generally have no open costs to begin using and they are typical ‘self-provisioning.’  Multi-tenant apps generally cost less to run and maintain and can have a minor monthly charge to consumers because of this owing of the common database.

The incorporation of more than one SaaS application (for example ERP and CRM) can be achieved by the providers but is generally hard for end-users. But, when done correctly, it can look as well as work flawlessly, practically as if one solution.

Cons of SaaS

Although inexpensive upfront, the once-a-month fees, can add up with time to be considerably more than any other solution. There are intricate ROI spreadsheets carried out by parties that have interests in both situations.

Some SaaS providers have contracts that don’t even permit you to repossess your own data until they get the complete payment. This ownership of data can be a great sticking point when the lawyers start observing the contracts.

Since SaaS providers are popping up rapidly and most of them are only operating because of Venture Capital or further equity money, their lasting survival is doubtful as the unavoidable alliance occurs. If your Software as a service provider goes belly up, also if they grant you a chance to gather your data, it could require months to re-implement a novel system.

Final words

In many cases, it can be hard to dictate the distinction between cloud computing and Saas. I hope that provided details above have given you a good knowledge of what do they do and what is the difference is between them. Whether you are looking for an on-demand solution or one having long-standing scaling capabilities, you are having the best option right in front of you.

Think about what type of data backup guidelines are imperative to your business and whether they are valuable of paying an additional amount or if SaaS would provide sufficient flexibility without necessitating so much capital expenditure upfront.

And in case you are taking a switch then it might require time to become accustomed to all the changes arriving from switching over from Software as a Services (or vice versa), but when everything is working effortlessly and you are saving funds, you will be grateful you done the switch.


Krunal Panchal is the CEO & Co-founder of Groovy Web. He has been a hardcore programmer since he was 11 and started his professional career very young. His technical and logical mind drove him to choose coding as his destiny. At an initial stage, he got essential experience and the spirit of innovation and entrepreneurship. Learning something new is a never-ending process for him. Under his leadership, Groovy Web has become an established organization that serves industries from startups to enterprises, regardless of any limitations.

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