What Is A Hosted SaaS Model?

Software as a service forms one of the fundamentals of the cloud infrastructure. In a SaaS model, a licensed software is hosted at a central place and then provided to the users on a subscription basis. It is sometimes referred to as an on-demand software as well.

A company can utilize the software system to meet their business demand. All the users utilize the service using a thin client over the web. SaaS helps an organization to transfer data from one end to another seamlessly. Employees can access the software from a remote location.

The software is hosted by a service provider and it his responsibility to ensure the availability of the software, minimal downtime, and high-end security. A service provider is also responsible for the performance of the hosted software. Choosing a service provider is one of the most important steps when migrating to the cloud.

SaaS models can be easily customized and users can customize the software according to the need of the business. Hosting software on the cloud eliminates the need of installing it on site. This helps an organization to cut the cost of installing and maintaining infrastructure within the organization. Plus, hosting provider takes the responsibility of updating the software as well. Hosting is a fast and cost-effective solution, which helps most of the small and new business setups. Large business setups can make a move to the cloud too. They can move the low priority tasks first to check and get used to the environment, before moving to the cloud completely.

Initially, the cost of installation might seem a little high but on the whole, it is much less as compared to buying a new software for the company. Once, you have decided which hosting provider you want to go with then all you need to do is select a suitable plan and pay for the subscription.

How to choose a suitable hosting provider?

A well-established and reliable hosting provider must offer following services to the user:

24/7 admin support is a must. This helps the user to take an expert advice on the issues related to the hosted IT environment. It also eliminates the chances of service continuity.
Ample bandwidth to host the current and in future the expanded infrastructure.
Expertise in software management is also important. Your service provider should have enough experience in the data and software handling.
Must be a certified service provider. Security comes first. The service provider must keep security in place. Additional server time, firewall management, and user notifications are some of the methods to ensure system security.
Must take regular backups of the hosted applications. This gain is very important as regular backups help in data recovery.

There are mainly two types of SaaS models:

Vertical SaaS: This is specific to the industry like software for healthcare, agriculture, real estate, and finance industries.
Horizontal SaaS: Focusses on a software category like software for marketing, sales, HR, and finance.

Some of the SaaS applications are: