In the rapidly evolving world of software solutions, the term "SaaS" (Software as a Service) is often thrown around, sometimes without a full understanding of what it truly means. As more software vendors attempt to transition to cloud-based models, it's crucial for O&P practitioners to differentiate between genuine or native SaaS solutions and hosted software that is simply marketed as SaaS. Unfortunately, some companies are muddying the waters by promoting their hosted solutions as SaaS, leading to widespread confusion. This blog aims to clarify what SaaS really is and why it’s more than just a monthly subscription fee.
Understanding SaaS: A True Cloud-Native Solution
Let’s start by defining what SaaS truly means. SaaS is a software delivery model where applications are hosted in the cloud and provided to users over the internet. Users access the software via a web browser, and all the underlying infrastructure, including servers, databases, and networking, is managed by the SaaS provider. Here are the core characteristics of true SaaS solutions:
The Misconception: SaaS Equals Monthly Subscription
One of the biggest misconceptions in the O&P industry—and indeed across many industries—is that SaaS simply means paying a monthly fee to access software. This misunderstanding is often perpetuated by companies offering hosted solutions, which are fundamentally different from true SaaS, yet are marketed under the same banner.
Hosted solutions are essentially on-premise software that has been lifted and shifted to a cloud server. While these applications might be accessed over the internet and paid for on a subscription basis, they lack the core benefits of a genuine SaaS model.
Hosted Solutions: A Different Model
Here’s what you need to know about hosted solutions and how they differ from SaaS:
Cloud-Based vs. Web-Based vs. SaaS: Clearing the Confusion
Another area of confusion arises when people use the terms “cloud-based,” “web-based,” and “SaaS” interchangeably. While these terms are related, they are not synonymous.
Cloud-Based: This refers to any software, data storage, or service that is hosted in the cloud rather than on-premise. Both SaaS and hosted solutions can be cloud-based, but being cloud-based doesn’t automatically make a solution SaaS.
Web-Based: Web-based software is accessed via a web browser. It could be a SaaS application, a hosted solution, or even an on-premise system with web access. The term simply refers to how the software is delivered to the user, not how it is architected or maintained.
SaaS: As we’ve discussed, SaaS is a specific type of cloud-based software that is designed from the ground up to operate in a multi-tenant, scalable, and secure cloud environment. It goes beyond simply being hosted on the cloud or accessed through a browser.
Why It Matters: The Real Value of SaaS
Understanding these distinctions is crucial for making informed decisions about software investments. In the O&P industry, where accurate data, compliance, and seamless workflows are critical, choosing a true SaaS solution can offer significant advantages:
Lower Total Cost of Ownership (TCO): With SaaS, there are no hidden costs for hardware, maintenance, or updates. Everything is included in the subscription fee, providing a predictable and lower TCO compared to hosted or on-premise solutions.
Better Security and Compliance: SaaS providers are responsible for maintaining the security and compliance of their software. They invest in advanced security measures, regular audits, and compliance certifications, ensuring that your data is protected and meets industry standards.
Continuous Innovation: SaaS providers are constantly innovating, delivering new features and enhancements without disruption. This means your software evolves with your business, keeping you competitive in a rapidly changing market.
Scalability and Flexibility: Whether you’re expanding your practice or adjusting to new regulatory requirements, SaaS solutions can scale with you, providing the flexibility you need to adapt without the headache of managing infrastructure.
SaaS Is More Than Just a Subscription
At Nymbl, we were “born SaaS,” which means our solutions take full advantage of all of capabilities mentioned in this post. We are firm believers in the value that this model brings to our company and to our customers, giving us the freedom to rapidly embrace modern technology innovations while maintaining the most scalable and secure environment for our customers.
If you are interested in learning more about the advantages that Nymbl’s true SaaS-based solution brings to your practice, reach out and let us know.