SAAS vs Cloud Computing: 3 Notable Differences
Software-as-a-Service (SaaS) is often used synonymously with cloud computing. So what is the difference? In simple terms, SaaS is a subset of cloud computing. But let us dive into the specifics of how.
• SAAS Is a Subcomponent of Cloud Computing
SaaS is any software application run “off-premise” rather than on servers and data storage in your data center.
You can have an independent software vendor (ISV) requesting a third party to provide a cloud to host the application.
Alternatively, the independent software vendor can be a large organization namely Google that can provide its cloud besides the software.
To run a SaaS application, you log into your ISV’s website on any device having a network connection. It would be correct to say SaaS applications are run in the cloud and therefore are cloud-based. But not all cloud-based products are SaaS.
So, what is the cloud (or referred to as cloud-based or cloud computing)? Simply put, the cloud is the internet or online storage for data to make it seem more tangible.
Technically, cloud computing is the delivery of computing resources over the internet (“the cloud”). These resources include virtual computers/servers, data storage, networking, software, and development environments.
For instance data storage, virtual data storage acts like a physical hard drive and server, but the reality is it is a program running on a bigger machine. For a better picture let us look at Amazon Web Services (AWS) cloud compute service.
With AWS cloud compute service, you’re developing and renting a “virtual storage” running on Amazon’s infrastructure as opposed to buying physical hard drives.
If you do not directly interact with a company’s servers, then you are not the individual operating directly with cloud computing. The company may decide to run applications and store data using cloud services like AWS as infrastructure.
Alternatively, your ISV may use cloud services such as SalesForce.com to build applications that then become SaaS applications.
In short, cloud computing is for software developers, application vendors, and corporate IT departments, while SaaS is for people who use computer applications.
• Estimation of Size of the Platform
In the 1960s, IBM and other Mainframe computer providers offered time-sharing services.
In the time-sharing model, keyboards and monitors (without CPUs) were connected to large Mainframe computers which hosted applications and data.
With the expansion of the internet in the 90s, a new form of centralized computing emerged. It was referred to as Application Service Providers (ASPs). SaaS became an extension of the ASP model.
Historically, SaaS resulted in cloud computing, which is a bigger platform on which “SaaS sits”.
Cloud computing offers additional services such as IaaS, PaaS, and Serverless other than just SaaS which is a software hosted in a cloud environment.
• Evaluating the Security of Data
With SaaS, all the data is in the hands of the service provider who can use your data in any way seen suitable unless indicated otherwise. For example, many people use free email services. Although they know the company’s privacy policies, they will continue to do so.
For the cloud, there is more control. Even though the servers are not local, companies can manage their software and data. It can also be moved from the cloud environment to local archives.
SAAS vs Cloud Computing: The Final Take
SaaS offers fully developed end-user applications on a pay-as-you-go basis while cloud computing offers infrastructure and services to rent. Businesses should focus more on SaaS than cloud computing unless they are into software development.
