Software as a Service (SaaS) vs. cloud computing: What’s the difference?

A glowing blue clowd against a dark background with sparks of electricity running through it, representing cloud computing.Of the many initialisms included in conversations about IT solutions, SaaS – which stands for Software as a Service – is among the most common. You might have heard it used in discussions about cloud computing and cloud-hosted solutions.

However, the terms “SaaS” and “cloud computing” have distinct definitions. If you’ve ever wondered how SaaS differs from the cloud in general or other “aaS” terms, this blog entry is for you.

Here are the answers to some questions you might have about SaaS versus cloud.

What is cloud computing?

When people in the IT space refer to “cloud computing,” they’re talking about providing computing infrastructure and services (e.g., software, networking, databases, servers, and storage) via the internet, according to Microsoft.

Cloud services and solutions enjoy enormous popularity for their numerous advantages, such as the following:

  • Cost savings due to the elimination of expenses associated with hardware and only paying for the resources you use
  • Ability to easily scale up or down as needed
  • Accessibility from any location or device with an internet connection

Of course, like all IT solutions, cloud offerings have cons as well as pros. For more information, please visit this page: “Advantages and Disadvantages of Cloud Computing.”

Here are some other resources if you want to learn more about cloud computing:

What is Software as a Service (SaaS)?

SaaS – also called cloud application services – is one of the top three most prevalent and popular types of cloud computing services, along with Platform as a Service (PaaS) and Infrastructure as a Service (IaaS), according to IBM. It’s essentially what it sounds like: The service provider hosts and manages the application and all its associated infrastructure, and clients access the software on demand via the internet.

Some sub-categories of SaaS include the following:

Leveraging SaaS comes with the following notable advantages for businesses, according to IBM:

  • Transferring all app and infrastructure management tasks to a third-party provider
  • Accessibility and productivity from anywhere
  • Increased scalability
  • Low financial risk due to commonly offered free trial periods or low initial pricing

SaaS also has potential drawbacks, according to TechTarget:

  • Loss of control due to outsourcing management to an external provider
  • Difficulty switching suppliers
  • Less control over security and compliance

What’s the difference between SaaS and cloud computing?

To summarize, SaaS is a category of cloud computing services, according to Microsoft. Software as a Service is a type of cloud solution, but not all cloud offerings are SaaS.

How do I know if SaaS or cloud is right for my business?

Our trusted technology advisors can evaluate your current situation, pain points, requirements, and objectives to determine whether SaaS or cloud solutions make sense for your business.

Since 2003, our clients have depended on us as a source of expert knowledge about cloud migration and adoption. With a portfolio of over 200 best-in-class cloud solutions, advanced research and analytical tools, and comprehensive comparison matrices, we can rapidly identify the best options for your company, saving you significant time and money by eliminating hours of homework and narrowing the possibilities from double-digits to the top 3 to 5.

Additionally, our team can handle cloud and SaaS licensing procurement and management to lighten the workload for your internal staff members and ensure you have the best options for your organization.

Start by calling 877-599-3999 or emailing sales@stratospherenetworks.com to speak with our advisors.

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