Your e-commerce glossary

All the terms you need to know to succeed in modern e-commerce, explained simply and clearly.

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What is SaaS ?

SaaS delivers software applications over the internet, allowing users to access them without installation, maintenance, or hardware requirements.

Explanation

Software as a Service (SaaS) is a cloud-based software distribution model where applications are hosted on external servers and accessed via the internet. Unlike traditional software that requires installation on individual devices, SaaS applications run on cloud infrastructure, offering seamless accessibility, automatic updates, and subscription-based pricing. This model enables businesses and individuals to use powerful tools without investing in hardware or IT maintenance.

Importance

  • Cost-Efficiency: Reduces upfront costs by eliminating the need for expensive hardware and software licenses.
  • Scalability: Easily scales to accommodate business growth without requiring additional infrastructure.
  • Accessibility: Users can access SaaS applications from any device with an internet connection.
  • Automatic Updates: Ensures that software remains up-to-date with the latest features and security patches.
  • Security & Reliability: SaaS providers offer secure data storage, backups, and protection against cyber threats.

How It Works

  • Cloud Hosting: SaaS applications are hosted on cloud servers managed by the provider.
  • Subscription-Based Access: Users pay a monthly or annual subscription to use the software.
  • Web-Based Interface: Applications are accessed via a web browser, eliminating the need for installation.
  • Regular Updates: Providers handle maintenance, ensuring users always have the latest version.
  • Multi-Tenancy: Multiple users share the same infrastructure while maintaining data security and privacy.

Benefits

  • Lower IT Costs: Eliminates the need for on-premise servers and maintenance.
  • Fast Deployment: Quick and easy setup without complex installations.
  • Cross-Device Compatibility: Works on desktops, tablets, and mobile devices.
  • Enhanced Collaboration: Enables teams to work together in real-time from different locations.
  • Data Backup & Security: Automatic backups and security features protect user data.