WDIC: SaaS

Sean Sukonnik
4 min readOct 10, 2022

Well, I myself have heard “SaaS” as a term (pun intended) many times over the last few years. While I understoon the concept, details were always blurry for me. With that in mind, let’s dive deeper into the “why”’s and “how”’s of Software-as-a-service models and what makes them special.

Textboox Definition

The SaaS model is a type of subscription software that allows users to access and use the software from a remote location. It first appeared in the late 1990s and has since become increasingly popular, due in part to its flexibility and affordability. SaaS models typically require little or no upfront investment, making them ideal for small businesses and startups. They also tend to be more scalable than traditional on-premises software solutions.

Why exactly is that important?

The SaaS model is very important in the distribution of software today because it allows companies to distribute their software more easily and efficiently. SaaS allows companies to distribute their software through the internet, which means that they can reach a larger audience with less effort. Additionally, SaaS makes it easier for companies to update their software and keep track of customer usage. Finally, SaaS models typically have lower upfront costs than traditional on-premises software models, making them more appealing to small businesses and startups.

Some examples of companies that have used the SaaS model successfully include Salesforce, Google, and Microsoft. These companies have all been able to use SaaS to reach a large number of customers with relatively little effort. Additionally, these companies have been able to use SaaS to continuously update their software and add new features over time. This has allowed them to stay ahead of the competition and maintain a loyal customer base.

That’s how AI sees SaaS. Why? No idea

Why SaaS over others? And who are the others?

The three most common types of SaaS are application, storage, and collaboration. However, there are other models that have begun to emerge as well, such as platform-as-a-service (PaaS) and infrastructure-as-a-service (IaaS). While each of these has its own unique benefits, they all share the common goal of providing a more efficient and effective way to manage software and data.

One of the biggest advantages of SaaS is that it allows for a much more rapid deployment of new features and updates. This is because the cloud provider can push out new code to all of their customers almost instantly. This means that users always have access to the latest version of the software, without having to go through a lengthy update process.

Another benefit of SaaS is that it can be much cheaper than traditional software licenses. This is because you only pay for what you use, rather than having to purchase a full license up front. This can be a great option for small businesses or startups that don’t have a lot of upfront capital to invest in expensive software products.

Finally, SaaS can provide a higher level of security than traditional on-premises software. This is because the cloud provider is responsible for managing all aspects of security, including patching and monitoring. This can give peace of mind to organizations who are worried about potential security breaches.

I hear the future calling for SaaS and scrambled eggs

There’s no doubt that SaaS companies have changed the way we live and work. They’ve made it possible for us to access our favorite apps and services from anywhere, at any time. And they’ve made it easier than ever to collaborate with others. But what does the future hold for SaaS companies? What other technologies are on the horizon that could change our lives forever?

One of the most exciting emerging technologies is virtual reality (VR). VR has the potential to totally transform the way we interact with computers and the world around us. With VR, we’ll be able to immerse ourselves in digital environments and experience them as if they were real life. This could have a huge impact on how we learn, work, and play.

Another potentially game-changing technology is artificial intelligence (AI) that we talked about before. AI is already starting to change the way we live and work, but its true potential is only just beginning to be realized. As AI gets more sophisticated, it will increasingly be used to automate tasks and make decisions for us. This could free up a lot of time for people to pursue other activities. Of course, these are just two examples of emerging technologies that could have a profound impact on our lives.

There are many others out there as well, such as 3D printing, blockchain, and nanotechnology. It’s impossible to predict exactly how these technologies will evolve, but one thing is certain: they’re sure to change our lives in ways we can’t even imagine today.

Home Reading

SaaS people love their lists, and I got one for you as well: 5 articles taht can be worth a read if you want to figure out how SaaS looks and how companies are built in the space.

  1. “The Ultimate SaaS Dictionary: 50 Key Terms You Need to Know” by Pardot
  2. 2. “50 Types of SaaS Companies” by Salesforce

3. “How to Build a Smarter, Faster SaaS Company” by HubSpot

4. “13 Ways to Define What Is a SaaS Company” by G2 Crowd

5. “15 Essential SaaS Acronyms Everyone Should Know” by Aha!

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Sean Sukonnik

I'm Sean and as a student of Bayes I write on all things economics, VC, startups and marketing. Can be found under @VaguelyProf on twitter