SaaS

SaaS (software as a service) is software you don't buy or install on your own server but use through a browser on a subscription. The provider hosts, updates and supports it (Wikipedia, SaaS).

In plain words

Compare it with renting an apartment instead of buying one. You pay every month, live in a ready apartment, and the plumbing repairs and the roof aren't your concern. SaaS is the same: you pay for access, while the servers, updates and security are the provider's job.

According to Wikipedia, the typical features of SaaS are:

• access through a browser, nothing to install or update by hand;
• usually one version of the program serves all customers (so-called multi-tenancy), so updates reach everyone almost at once;
• payment by subscription or by usage: by number of users, operations or data volume;
• as a rule, no perpetual license for a specific version (Wikipedia).

For a store, SaaS means, for example, an email service, an analytics system, a CRM, a cloud accounting system or the online store platform itself. For the choice between a ready-made platform and custom development, see ready-made platform or custom development.

Why a store uses it

• Low entry cost: no server, administrator or large one-time purchase needed. Wikipedia writes that this lowers initial costs and makes software accessible to small businesses.
• Less technical work: the provider runs the infrastructure.
• Fast launch: a service can be connected within days.

When it's too early or doesn't fit

• When you need very specific processes the service can't handle. You can customize a ready-made program only within the limits the provider gives.
• When your data is so sensitive that you aren't ready to hand it to third-party servers. Wikipedia names security and privacy as one of the main reasons companies avoid SaaS.
• When you aren't ready to depend on someone else's service: data formats and migration costs make switching to another provider harder (so-called vendor lock-in) (Wikipedia).

How it relates to other systems

A store's SaaS services work together if they exchange data through APIs and integrations. A typical set: the store platform, CRM, accounting system, a PRRO service, a payment gateway (payment methods). The more separate services there are, the more subscriptions, and the more it matters whether each has an open API.

Common mistakes

• Counting only the plan price. The subscription grows with the number of users and volume, and integrations and setup often cost extra.
• Not checking how to take your data out if you have to leave.
• Not asking where the data is stored and who has access to it.

FAQ

What is SaaS in plain words? A program on the internet you pay for by subscription. You don't need to install it on your own computer or server.

How is SaaS different from software you buy once and keep? A purchase gives you a version you install and maintain yourself. SaaS is a subscription to a service the provider updates itself, but access also disappears if you stop paying.

Is it safe to store customer data in SaaS? Security depends on the specific provider and the contract. Ask where the data is stored and whether there is an export.

Is SaaS always cheaper than custom development? At the start usually yes, because there is no large one-time sum. After that it depends on scale, the number of users and your needs; there is no universal answer.

Related terms

• SaaS platform, custom store or vibe coding: what to choose
• CRM
• ERP
• APIs and integrations
• Headless commerce

Sources

• Wikipedia, Software as a service — en.wikipedia.org/wiki/Software_as_a_service

There is no fresh data on the share of SaaS among Ukrainian stores.