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What is Software-as-a-Service (SaaS)?

SaaS ( Software-as-a-Service ) is a way for people to connect to applications using the Internet. End users do not need to install software or use specialized hardware to access these apps. Most cloud apps are accessible on any or multiple devices with a browser. An end user signs in to the app using their login credentials.

SaaS apps cover the entire spectrum of business tools. Examples include productivity apps like Microsoft Office 365 and Google Docs.

Software as a Service model offers businesses many benefits, such as facilitating remote access, easy deployment and updates, and cost-effective subscription licensing. A cloud service provider delivers apps using a pay-as-you-go model and monthly subscription, which allows a business to easily upgrade or downgrade licenses in line with changing business needs. The cloud service provider ensures high availability, scalability, and security of cloud-based apps. By using a SaaS delivery partner, a company can reduce the overhead on IT staff for application installation and management.

This model of internet access to essential business tools has revolutionized work.

Short History of SaaS

As we know it today, SaaS is a product of internet advancements and the increasing uptake of cloud computing. However, a nascent version of Software-as-a-Service can be attributed to Salesforce in the 1990s with their “no software model.” However, it wasn’t until Amazon launched Amazon Web Services (AWS) in 2008 that scalability was truly established. Amazon came up with the idea of Elastic Scalability, allowing businesses to acquire and release resources as needed. Soon after, Google released Google Apps and GSuite (now Google Workspace).

Today, the vast array of APIs and API availability have provided a framework for integrating apps with other tools to deliver expanded functionality and features. SaaS apps are often easily configurable and provide the basis for customization, making cloud-based apps even more attractive.

How Does SaaS Work

SaaS (Software as a Service) uses the cloud computing model. Cloud service providers like Azure and AWS manage the cloud environments and cloud servers used to host applications. A SaaS vendor either hosts applications and data on its own servers or uses the cloud servers of a third-party cloud service provider. Users with internet access can then access SaaS-hosted apps using any device with a browser or a mobile app. Typically, cloud applications are hosted in a multi-tenant environment and so share resources. Multiple companies access the same hosted app. The cloud servers that are used to host the apps may be physically located in a different country to the end user.

The design remit of a SaaS architecture is to deliver scalability, reliability, availability, security, and robust performance. The architecture must reflect the business goals of an organization, this is often reflected in the Service Level Agreement (SLA).

Multi-tenancy or single-tenancy models

While the multi-tenancy model is a typical mode of delivery for SaaS, single-tenancy models are also available. A single-tenancy architecture provides a dedicated instance of the SaaS environment to a customer. This single tenancy ensures that the application(s) database and supporting infrastructure serve a single customer, i.e., resources, databases, etc., are not shared. This infrastructure is usually more expensive than a multi-tenancy model.

SaaS integration

SaaS apps can often be integrated with an existing IT infrastructure. SaaS integration can deliver enhanced capabilities that lead to improved efficiencies. Data synchronization across multiple systems prevents data silos from forming. Integration with existing IT systems, including enterprise resource planning (ERP) software, provides the framework needed to seamlessly share data and automate and simplify workflows

Advantages of SaaS

Amongst the advantages of using SaaS are:

  • Cost-effectiveness
  • Scalability and flexibility
  • Easier maintenance and automatic updates
  • Easy to test out and evaluate proof of concepts

SaaS vs. On-Premises Software: Pros and Cons

SaaS

On-premises

Cost

Low barrier to entry, subscription, pay-as-you-go and cost-effective.

More costly to setup and implement. Initial overheads can be much higher.

Scalability and upgrades

Optimized for growth and can scale up or down quickly. Upgrade of licenses, servers, etc. is usually seamless.

More difficult to scale and license contracts can make it hard to scale down.

Maintenance and support

Managed by a third-party vendor who will look after maintenance. SLAs cover support needs.

Typically requires in-house support.

Cybersecurity and compliance

Advancement in SaaS security, like CSPM means that SaaS has best-of-breed security available.

Requires specialist in-house security professionals to ensure the business and data is protected and compliant.

Common Examples of SaaS Applications

There are an average of 130 SaaS apps used by a company includes some of the most popular cloud-based Apps, including:

  • Salesforce
  • Microsoft Office 365
  • Zoom
  • Mailchimp
  • Slack
  • Notion
  • Adobe Creative Cloud
  • QuickBooks Cloud
  • Dropbox
  • Shopify
  • Google Workspace
  • Hubspot
  • Atlassian

SaaS vs IaaS and SaaS vs PaaS Cloud Service Models

PaaS (Platform-as-a-Service), IaaS (Infrastructure-as-a-Service), and Software-as-a-Service (SaaS) are three types of cloud service model offerings.

  • PaaS offers an on-demand cloud-hosted platform that is ideal for use by software developers and service providers to develop, test, and manage applications.
  • IaaS is an on-demand IT infrastructure service. IaaS vendors provide access to cloud-hosted resources, including physical and virtual servers, storage and networking.
  • SaaS offers on-demand access to cloud-hosted apps.

SaaS (end users)

PaaS (developers)

IaaS (IT administrators)

Software-as-a-Service

  • Operating system agnostic
  • Applications and data
  • Accessible from any device with internet connectivity/browser

Platform-as-a-Service

  • Virtual development platform and tools for testing and deploying applications.

Infrastructure-as-a-Service

  • Virtual IT data center
  • Infrastructure. Admin
  • Installs and manages the OS,software, data and services
  • Servers
  • Storage
  • Virtualization
  • Networking
  • OS
  • Middleware
  • Runtime
  • Servers
  • Storage
  • Virtualization
  • Networking
  • OS
  • Middleware
  • Runtime
  • Servers
  • Storage
  • Virtualization
  • Networking

Implementing and Scaling SaaS

SaaS can be deployed using several types of cloud models. These are defined by NIST (National Institute of Science and Technology) as follows:

  • Private cloud  can be on- or off-premises and provides access to a cloud infrastructure on a per-organization basis. Private clouds may be owned, managed, and operated by the organization. However, a third party may be involved in deployment and management.
  • Community cloud can be on or off-premises and allows groups of shared interest communities that may exist across several organizations to collaborate and share services across a common infrastructure. The infrastructure may be managed by one or all of the community groups or by a third-party service provider.
  • Public cloud infrastructure is accessible by the public. Public clouds are often used by government services or academia. Public clouds are hosted by a cloud provider.
  • Hybrid cloud is a combination of two or more of the cloud infrastructures described above. Each of the clouds within the hybrid remain distinct entities. Standardized or proprietary technology allows for interoperability and data portability.

Transitioning to a SaaS model

SaaS is a service-based approach with legal and technological differences to using products installed on in-house IT systems. Some examples of areas that must be considered when transitioning from product to SaaS services include the following:

  • Security and access control: Remote access, security protocols, and other security areas, such as zero trust, will be impacted when a company moves to a cloud-based service model. Your SaaS vendor must offer alternative security arrangements that de-risk associated security issues with cloud computing.
  • Licensing: Cloud-based apps and service require vendor SLAs. These are a form of contract covering maintenance of the application and infrastructure with commitment to varying levels of availability, performance, and incident response and resolution. 
  • Data sharing, privacy, and compliance: SaaS vendors typically host and process customer data. This has implications for data security and privacy and can impact regulatory compliance with the likes of GDPR, HIPAA, etc. Vendors should demonstrate how they adhere to data sharing privacy and security protocols and measures.

Challenges and Risks of SaaS

Software as a Service (SaaS) is not without its risks and challenges:

Security and privacy concerns

On-premises computing provides a degree of protection because it can be protected as a closed system, However, cloud computing has a fuzzy perimeter so has special requirements for securing data and controlling access to resources. For example, special care must be used to ensure that staff have the right level of access to do their job and no more, often called least privilege access. Security solutions designed for SaaS environments ensure that data is protected wherever it goes and with whomever it is shared.

Dependence on Internet connectivity

SaaS apps are available over the internet; therefore, for optimal use, users must have Internet connectivity. Also, these apps may have greater latency than client-server apps.

Vendor lock-in and data ownership

Delivery of SaaS by a third-party vendor may make the recovery and movement of your stored data more difficult. Data ownership can be a complex area and comes under the contract between a client and vendor. It is essential to understand the data ownership clauses in your SaaS vendor contract.

Unauthorized access

SaaS services are exposed to the internet and is therefore at greater risk of web-based attacks like brute force and credential stuffing.

Shadow IT

Much of shadow IT is caused by using unsanctioned SaaS apps. Users with Internet access can easily acquire and use SaaS tools. Shadow IT leaves departments at risk of unmanaged apps being used to create and share sensitive data.

Vendor risk management

SaaS vendors must be assessed for risk to ensure that they have robust measures to mitigate disasters that could cause business interruption.

SaaS Security

A recent Cloud Security Alliance (CSA) survey shows that SaaS security is a top priority for 80% of organizations. The survey also found that over half of organizations had experienced a SaaS security incident, resulting in ransomware, malware, and data breaches. Securing the vast attack surface created by cloud-based apps is essential in de-risking an organization.

Common challenges, threats, and concerns

  • Shadow SaaS: SaaS apps are cost-effective and payable by monthly subscription. This makes it easy for an employee to use unsanctioned apps for work. Shadow IT goes under the radar and is outside the company's control.
  • Misconfiguration and API security: misconfigurations can add risk to an organization's security stance.
  • Visibility issues: If software licenses are bought outside regular procurement routes, the visibility of SaaS tools can be challenging. The resulting SaaS sprawl leads to a lack of security for sensitive data.
  • Data sharing: data visibility and SaaS sprawl can result in data sharing across apps and platforms that are not properly secured or configured for privacy.
  • Privilege sprawl: app access privileges must cover a broad range of users, including partners, consultants, and other external. As a result, permissions are difficult to control and update, leading to "privilege sprawl." This falls outside the security concept of least privilege access, which is used to control access to sensitive data.
  • Insider threats and SaaS misuse: insider threats can be both malicious and accidental. The data generated and shared using SaaS apps must be protected from both types of insider threat.

SaaS security best practices

The following technologies are used to mitigate the risks and security challenges of SaaS:

  • SaaS vendor security assessment: Security begins by knowing who you are dealing with. A security assessment of any SaaS vendors an organization uses is fundamental to security. The assessment analyses potential risks associated with a specific vendor.
  • Visibility, app discovery, and monitoring: Knowing what you are dealing with is next step to security. Visibility across the expanded cloud environment allows an organization to monitor app access and use and apply appropriate access and authorization measures.
  • Robust authentication and authorization: Robust authentication measures must be applied to control access in a cloud environment. Login credentials are a popular target for cybercriminals who use social engineering, phishing, and dark web marketplaces to gain unauthorized access to SaaS apps. Authorization that fits the needs of the individual role and does not provide unnecessary privileges helps mitigate SaaS risk.
  • Zero-Trust architecture and least privilege: A zero-trust architecture (ZTA) can be used to protect SaaS apps and data. ZTA continuously authenticates users, devices, and applications. The principle of least privilege (PoLP) is used to ensure that post-access permissions are applied to the user that reflect their role in the company and offer enough access rights to perform a task and no more.
  • AI-enabled advanced threat detection: AI is powering many security solutions in response to the increasingly complex and often automated cyber-attacks focusing on SaaS environments.

Security solutions for SaaS

Some of the most important Software as a Service security solutions are as follows:

  • Identity management and governance - Identity management and governance is a fundamental building block of secure SaaS app access and data security.
  • Cloud Security Posture Management / SaaS Security Posture Management (CSPM or SSPM) - CSPM and SSPM provide unified solutions that monitors cloud / SaaS environments for misconfigurations, policy violations, and compliance risks. CSPM is a more holistic way to monitor and secure cloud-based accounts, whereas SSPM focuses on SaaS apps.
  • Web application firewalls (WAF) - A WAF filters and monitors HTTP traffic between a web application and the Internet. Any anomalous or suspicious traffic is stopped.
  • Email security and spam filtering -Email security solutions help prevent phishing and malicious spam from entering employee inboxes.
  • Data encryption - Data must be encrypted during sharing and transmission across a SaaS environment as well as during storage.
  • Data loss prevention (DLP) - DLP software sets rules that prevent sensitive or proprietary information from leaving a secure zone.

SaaS Compliance

Data protection in Software as a Service (SaaS) environments is enforced by a variety of standards and regulations. Some of the most well-known are as follows:

Future of SaaS

As with many technologies, SaaS embraces artificial intelligence (AI) and machine learning (ML) to improve operational efficiency and business intelligence. Advances are also focusing on improving customer experience (CX) using data-driven user journeys to optimize and enhance the CX. The unification of SaaS and tools like agency management systems (AMS) and comparative rating systems are adding important interoperability to enhance business intelligence and operations. The enhancement of cybersecurity across SaaS and cloud-native apps creates safer environments, which de-risks the enterprise.

How Bitdefender Can Help

Bitdefender’s premier solution for SaaS security is our GravityZone CSPM+ (Cloud Security Posture Management). GravityZone CSPM+ provides vital support to overloaded teams helping them to manage and secure cloud operations and delivers visibility of your cloud footprint, automatically identifying non-compliant configurations, and best practice deviations.

Beyond standard Cloud Security Posture Management (CSPM), GravityZone CSPM+ also uses Cloud Infrastructure Entitlement Management (CIEM) to identify and map over-privileged identities. Additionally, Threat Detection alerts your team to potential security issues, safeguarding your cloud investment.

GravityZone platform provides three core pillars of SaaS security:

  1. Cloud Risk Visibility: lower risk by identifying misconfigurations and overprivileged identities.
  2. Compliance Mapping:  automatically checks for any non-compliance issues.
  3. Threat Detection and Response: detects and prevents potential threats

Bitdefender also provides additional cloud-native security solutions to fit the needs of your organization . Our CSPM solution is unified with Cloud Infrastructure Entitlement Management (CIEM) and multi-, hybrid-cloud solutions, including Cloud Workload Security (CWS), container security, and solutions for virtualized data centers.

What’s the difference between cloud computing and SaaS?

Cloud computing is a general term that includes networking, storage, and software services delivered across the internet. Cloud computing services include PaaS (Platform-as-a-Service), IaaS (Infrastructure-as-a-Service), and SaaS (Software-as-a-Service). Businesses can rent cloud computing resources such as data storage, processing power, and networking.

SaaS provides businesses with applications hosted in a cloud computing environment by a third-party vendor. The apps are accessible from any device with a browser or via a mobile app and are delivered as a subscription model, which is highly scalable

Is SaaS-based data safe?

Cloud-based apps delivered as SaaS can potentially be at risk from a wide array of cyber threats. The SaaS model of software delivery requires layers of security to ensure that data created in cloud apps or shared across internet connections is secure from interception, ransomware attacks, accidental and malicious insiders, and web-borne cyber-attacks. SaaS-based data is secured using security tools, including data encryption during storage and transmission, Cloud Security Posture Management (CSPM) software, identity and access management, a zero-trust architecture, and the use of security best practices like least privilege access controls.

Can SaaS applications be customized?

Yes, some SaaS applications are designed to be customizable. SaaS customization usually follows the business requirements of a client. For example, a SaaS app that provides customer onboarding may require additional functionality to capture certain identity attributes. SaaS apps may offer API integration extensibility to allow customers to integrate the app with their own API functionality.