What is SaaS?

4 min. read

Software as a service (SaaS) applications provide tremendous value to businesses and end users. One of the three main cloud computing categories alongside infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS), software-as-a-service (SaaS) is a web-based software distribution model in which a third-party provider hosts applications that it makes available to customers over the internet. The software vendor hosts and maintains the servers, databases and code that constitute an application.

Many SaaS applications are available for foundational business needs, including email, data storage, data sharing, customer relationship management, billing, sales management and collaboration, among others. Pricing is typically based on annual or monthly subscriptions, accounting for the software license, support and most other monetary costs. Popular SaaS apps include Microsoft 365® (formerly known as Office 365®), Box, G Suite®, Amazon Web Services (AWS®), Salesforce®, Workday® and Slack® among others. Providers often integrate with each other to augment productivity for customers. For example, a provider that offers an email application might store attachments in another provider’s cloud-based file storage.

The Value of SaaS - and Some of the Security Concerns

The economics of SaaS—and cloud computing in general—empower enterprises. SaaS offers easy setup and collaboration capabilities that change the way organizations do business, allowing employees to access the tools and the data they need to effectively do their jobs and essentially putting enterprise customers back in control of IT spending.

However, while incredibly useful for driving business productivity, exponential growth in SaaS application usage brings with it security concerns much like those organizations face in traditional on-premises network infrastructure. For example, Microsoft OneDrive® or SharePoint® let users easily store and share files, but they create opportunities for accidental shares when users unintentionally send access to the wrong people.

Similarly, applications like Exchange and Salesforce easily store important, structured data for users, but these, too, are open to accidental data exposure or threat insertion risks and often act as entry points for malware, which can spread over time. For example, if a sales representative uploads an infected invoice document to Salesforce, a sales operations person who downloads the file will also become infected, and so on.

Reducing this type of risk in SaaS applications, where organizations’ most sensitive data often resides, is key to securing the enterprise IT infrastructures of the future. As a result, governance and protection of this data has catapulted to the top of CISOs’ priority lists.

The Continued Evolution of SaaS Security – Enter SASE

Businesses have become increasingly concerned about the volume of sensitive data being transferred, stored and shared within SaaS environments beyond their visibility and control. Remote working is a big security factor to take into account as SaaS applications are directly accessible by anyone, from anywhere, and via any device.

As a result, a new approach to security has emerged, which Gartner calls the secure access service edge (SASE; pronounced “sassy”). A SASE is a single, cloud-delivered solution that combines networking (WAN, VPN, ZTNA) and network security services (FWaaS, CASB, DNS, DLP). A SASE architecture identifies users and devices, applies policy-based security, and delivers secure access to the appropriate application or data, allowing organizations to apply secure access no matter where their users, applications or devices are located.

A SASE solution provides organizations with many benefits:

  • Protection from threats across many thresholds: advanced threats, data loss, data theft and malware
  • Reduced complexity and cost of deployment
  • Complete visibility, access and control over the entire network

As organizations look to provide better protection for their data and users, SASE can offer a simplified solution rather than investing in multiple point products to fix separate issues. For more information on how to effectively secure SaaS applications, download our ebook “Navigating the SaaS Security Jungle”. To learn more about what a SASE solution entails, get a copy of our “10 Tenets of an Effective SASE Solution” e-book.

Resources:

Gartner report: The Future of Network Security Is in the Cloud
Palo Alto Networks SASE solution: Prisma Access

Software as a Service FAQs

Multitenancy in SaaS refers to a single instance of the software serving multiple customers (tenants), each with isolated data and configurations. This architecture optimizes resource usage, reducing operational costs and enhancing scalability. Providers ensure data isolation through logical partitioning, robust access controls, and encryption. Multitenancy allows efficient software updates and maintenance, as changes are applied universally without affecting individual tenants. Platforms like Salesforce and HubSpot exemplify multitenancy by offering customizable solutions while maintaining data security and performance for each tenant, ensuring seamless user experiences.
Data security in SaaS involves protecting user data from unauthorized access, breaches, and data loss. Providers implement robust security measures, including encryption (in transit and at rest), multi-factor authentication, and regular security audits. Access controls ensure only authorized users can access sensitive information. Continuous monitoring and threat detection help identify and mitigate security risks. Compliance with security standards like ISO 27001, SOC 2, and GDPR further enhances data protection. SaaS platforms like Microsoft Office 365 and Google Workspace prioritize data security, providing secure environments for business operations.
Scalability in SaaS allows applications to handle increasing workloads by dynamically adjusting resources. SaaS providers achieve scalability through cloud infrastructure, enabling horizontal and vertical scaling. Horizontal scaling involves adding more instances, while vertical scaling increases resources for existing instances. Scalability ensures consistent performance during peak usage and can accommodate growing user bases. SaaS platforms like Slack and Zoom leverage scalable architectures to deliver reliable services, regardless of user demand. Automatic scaling and load balancing enable seamless growth, ensuring optimal performance and user experience.
Uptime and reliability in SaaS refer to the availability and consistent performance of the software. Providers ensure high uptime through redundant infrastructure, failover mechanisms, and robust disaster recovery plans. Service Level Agreements (SLAs) often guarantee a specific uptime percentage, such as 99.9%. Continuous monitoring and maintenance help prevent disruptions and quickly address issues. Reliable SaaS platforms like Salesforce and Microsoft Office 365 ensure that users have uninterrupted access to critical applications, supporting business continuity and productivity. High uptime and reliability are essential for maintaining user trust and satisfaction.
API integration in SaaS involves connecting the software with other applications and services through Application Programming Interfaces (APIs). APIs enable seamless data exchange and interoperability, allowing users to extend functionality and integrate with existing workflows. SaaS platforms provide comprehensive APIs and developer documentation to facilitate integration, supporting various use cases like CRM, ERP, and marketing automation. API integration enhances productivity by automating processes and enabling real-time data synchronization. Platforms like Salesforce and Google Workspace offer robust API ecosystems, empowering users to create customized, connected solutions.
Customization in SaaS allows users to tailor the software to meet specific business requirements. Providers offer configurable settings, custom fields, and flexible workflows to adapt the application to unique needs. Users can also integrate third-party plugins and extensions to enhance functionality. Customization ensures the software aligns with organizational processes and improves user adoption. SaaS platforms like Microsoft Office 365 and Salesforce provide extensive customization options, enabling businesses to create personalized experiences while benefiting from the core features and updates of the SaaS solution.
User management in SaaS involves the administration of user accounts, roles, and permissions within the software. Administrators can create, modify, and deactivate accounts, ensuring appropriate access levels based on user roles. Role-based access control (RBAC) and single sign-on (SSO) streamline user authentication and authorization. Effective user management enhances security, compliance, and collaboration by ensuring users have access to the necessary resources without compromising sensitive data. SaaS platforms like Google Workspace and Microsoft Office 365 offer robust user management features, simplifying administration and enhancing security.
Data redundancy in SaaS ensures data availability and integrity by storing multiple copies of data across different locations. Providers implement redundancy through techniques like replication, backup, and distributed storage. Redundant data storage protects against data loss due to hardware failures, cyberattacks, or other disruptions. Regular backups and automated failover mechanisms ensure quick data recovery. SaaS platforms like Microsoft Office 365 and Dropbox employ data redundancy to provide reliable and resilient services, safeguarding user data and ensuring continuous access to critical information.
Compliance in SaaS involves adhering to regulatory standards and industry-specific requirements to protect data and ensure legal and ethical practices. Providers comply with regulations like GDPR, HIPAA, and SOC 2 to meet security, privacy, and governance standards. Compliance measures include data encryption, access controls, audit logs, and regular security assessments. Meeting these standards fosters trust and confidence among users and stakeholders. SaaS platforms like Salesforce and Microsoft Office 365 prioritize compliance, ensuring their services align with regulatory requirements and industry best practices, protecting user data and supporting organizational governance.