Software as a Service (SaaS)
Software as a Service (SaaS) is a cloud-based software delivery model in which providers, such as Google, Microsoft, and Salesforce, make applications accessible to users through a web browser or dedicated app. SaaS solutions are hosted remotely over the internet rather than locally on individual machines, making them an alternative to on-premise software.
How do SaaS Solutions Work?
Like other "as a service" models, organizations subscribe to a SaaS solution and pay recurring fees to use applications online instead of purchasing and installing software on their local computers or servers. Here is a further breakdown:
On-Premises Software: The user buys a license and installs the software on their own servers.
SaaS: The vendor hosts the application, and the user subscribes and accesses it via a web browser or dedicated app.
Hybrid: Some components are on-premise while others are cloud-hosted.
Because SaaS operates on a subscription basis, the vendor handles infrastructure, security, and software updates. Users also do not have to manage or maintain the software locally.
The Benefits of SaaS for Businesses
The enterprise technology landscape continues to evolve rapidly. Not so long ago, IT departments busied themselves with manually installing, updating, and maintaining software on each employee's computer. In those days, storage was limited, users needed a license to use the software, and hardware closets were tangled messes of hot cables. Thanks to SaaS, those problems are largely a thing of the past.
In addition to eliminating old issues, SaaS solutions introduce new benefits for businesses, including:
Scalability: SaaS applications live on the vendor's servers, freeing users from hardware limitations. Likewise, the typical SaaS subscription model is flexible, allowing organizations to scale up or down as needed.
Accessibility: SaaS solutions are hosted over the internet, meaning users can access these applications from any internet-connected device. This greater accessibility makes it easy for companies to support hybrid or remote work models and allows employees who travel—whether due to their role or for events like industry conferences—to stay productive.
IT Empowerment: With SaaS, the vendor manages everything from security and storage to performance and maintenance, freeing IT departments to focus their time and energy on higher-value work.
Business Application Categories Delivered via SaaS
So, what are the best SaaS tools for businesses? Before jumping into a SaaS vendor evaluation, it is helpful to examine the various business application categories within SaaS. There are five notable categories of business applications delivered as SaaS solutions:
Enterprise Resource Planning (ERP)
Customer Relationship Management (CRM)
Productivity Business Applications (PBA)
IT Service Management (ITSM)
Business Intelligence (BI)
Enterprise Resource Planning (ERP)
ERP is a category of integrated business software that uses automation to manage and streamline key functions like accounting, inventory, and customer records, along with other processes and workflows. These systems enable companies to increase efficiency and performance without having to configure servers or invest in additional infrastructure.
Examples of ERP include:
SAP S/4HANA Cloud
Oracle Fusion
NetSuite
Customer Relationship Management (CRM)
Among the earliest and most mature SaaS categories is CRM—software that helps companies manage and track their interactions with current and potential customers. Leading CRM platforms can track a range of touchpoints across departments, including sales calls, customer service interactions, e-commerce purchases, and marketing emails. By consolidating customer data in one place, CRM solutions enable businesses to more effectively manage customer relationships and improve profitability.
Examples of CRM tools include:
Salesforce
HubSpot
Zoho CRM
Productivity Business Applications (PBA)
Productivity applications are cloud-based software tools designed to streamline everyday workflows, ranging from general collaboration and communication platforms to specialized project management suites. They give teams the ability to work seamlessly across devices and locations, overcoming the friction of legacy desktop software and siloed systems. These platforms are heavily SaaS-native today and have become the backbone of the modern digital workplace.
Examples of PBA platforms include:
Microsoft 365
Google Workspace
Hubspot
IT Service Management (ITSM)
ITSM is a category of SaaS solutions designed specifically for IT personnel, enabling administrators to monitor, manage, and optimize their organization's technology infrastructure and digital operations from anywhere via a web browser. Additionally, internal IT teams and Managed Service Providers (MSPs) will use ITSM platforms as the helpdesk service for their users and clients.
Examples of ITSM include:
ServiceNow
Jira
Zendesk
Business Intelligence (BI)
BI is a category of cloud-hosted platforms that help companies collect, analyze, and visualize data to surface actionable insights that inform business decisions. While BI tools predate SaaS, cloud-delivered BI platforms make it easier for organizations to track product usage, customer lifecycles, and key metrics from anywhere via a web browser—typically at a lower cost than traditional on-premise alternatives.
Examples of BI platforms include:
Tableau Cloud
Power BI
Looker
Conectrix Can Help With Your Enterprise SaaS Needs
At Conectrix, we leverage our extensive technology portfolio to connect you with the best business software solutions available. With over 300 software providers in our SaaS marketplace—including Microsoft 365, Google Workspace, Salesforce, and Adobe—we cover the full range of business application categories: ERP, CRM, PBA, ITSM, and BI.
