Software-as-a-service (SaaS) is a cloud-based solution offering powerful features with no installation. It is an efficient, no-hassle option for businesses in any industry. What makes SaaS applications different is that they’re accessed directly through a web browser.

Today, this distribution model is nearly ubiquitous. Companies around the world in every sector use SaaS. This detailed guide explores what makes these solutions unique, how they work, and their advantages.

What’s in this article?

• What is SaaS?
  
• How SaaS software works
  
• Features of SaaS platforms
  
• Examples of SaaS apps
  
• Advantages of SaaS
  
• SaaS trends in France
  
• The future of SaaS
  
• How Stripe Payments can help
  

What is SaaS?

SaaS delivers software through the cloud, with a third party hosting and managing the service. Users don’t need to download anything—they can log in anytime with an internet connection. Companies subscribe to SaaS on behalf of their employees and control who has access to it. The key benefit of SaaS is its flexibility, making it suitable for all kinds of businesses.

This concept first emerged in the early 2000s. Initial incarnations included email service providers and social media platforms. The evolution of the web led many enterprises to build their own SaaS solutions. Sellsy, for example, was one of the first SaaS providers in France. Today, businesses continue to depend on SaaS solutions to help them navigate ever-changing markets.

How SaaS software works

The concept behind SaaS software is simple: the vendor supplies the software and infrastructure, while users log in via a browser or app. Organizations simply subscribe to a service instead of purchasing and installing programs on their computers, significantly reducing up-front costs. The SaaS provider bills the company and also takes care of updates and data protection.

Though similar, individual SaaS apps vary based on each client’s needs (e.g., human resources management [HRM], internal/external communication, billing).

Furthermore, the “as-a-service” part of SaaS isn’t limited to software. It also describes any solution, administrative task, or complex technology provided to a customer by a third party. Some examples include IaaS (infrastructure-as-a-service) and PaaS (platform-as-a-service).

SaaS vs. on-premise solutions

Unlike SaaS solutions, on-premise software sits directly on the customer’s servers. Under this licensing model, the company is responsible for performing updates and upkeep, as well as managing the system and handling cybersecurity. This requires an IT department and can be complex. By opting for SaaS, enterprises are freed from the burden of maintenance, patches, and security, since these are included in the subscription.

SaaS vs. IaaS

In IaaS, a vendor supplies all cloud infrastructure (servers, networks, storage), reducing the company’s need for IT management. The company accesses the cloud via an interface to manage its operating systems and apps. The provider keeps the hardware running and takes care of any issues.

SaaS vs. PaaS

PaaS is a comprehensive platform that includes hardware and software managed by a third party. It’s an ideal solution for developers, allowing them to build, run, and administer programs without worrying about the underlying infrastructure.

Features of SaaS platforms

Although each SaaS solution is designed for a specific purpose, they all have a few features in common:

• Access via internet (cloud): SaaS software is hosted and accessible remotely through a browser. Users don’t need to install it locally onto their computers. This means they can log in anytime, anywhere via the internet.
  
• Continual automatic updates: The provider sends out new features, improvements, and security fixes automatically. Users don’t need to worry about updates and can be confident everyone has the same up-to-date version.
  
• Intuitive dashboard: Every SaaS platform is built to be user-friendly and intuitive for all team members.
  
• Scalability: SaaS solutions are designed to scale easily. Companies can add or remove users, storage space, or functions as needed.
  
• Fast rollout: No complex installation or setup means organizations can log in and start using the software almost immediately.
  
• Facilitated collaboration: Many SaaS tools contain coworking capabilities that let teams work on documents and projects together remotely and in real time.
  
• Integration: Many SaaS offerings are designed to integrate easily with other software and apps (via API, for instance).
  

Examples of SaaS apps

Doctolib, PayFit, and Yousign are some of the best-known examples of SaaS solutions. New platforms are popping up all the time, such as Planity, an online scheduling system with more than 40,000 small business clients. Planity raised €45 million in Series C funding in 2024. Here are some more prominent SaaS applications in their respective fields:

• CRM: Sellsy is a French customer relationship management tool.
  
• Webinars: Slack and Microsoft Teams might be household names, but Livestorm is another videoconferencing innovator and SaaS platform built for webinars and online events.
  
• Customer support: Dexem is a SaaS app that manages customer support calls.
  
• Hiring: Between is a collaborative hiring solution that helps recruiters organize their time, improve the applicant experience, facilitate teamwork, and identify top candidates.
  
• Accounting: French SaaS providers such as Pennylane offer accounting software (e.g., billing, tracking expenses, tax filing).
  

Advantages of SaaS

SaaS software offers companies several benefits:

• Scalability: SaaS expands with its user base, enabling agile growth without costly infrastructure investments.
  
• Subscription model: Instead of buying a single license, users pay a monthly or annual subscription fee, improving cost flexibility.
  
• Hosting and maintenance: Enterprises are relieved of managing these systems (servers, maintenance, updates, patches). The SaaS provider handles it all.
  
• Security: SaaS vendors invest heavily in data protection, regular backups, and standards compliance. They generally offer better security than companies can maintain internally.
  
• Customization: SaaS apps adapt to each business’s specific needs.
  
• Legal compliance: SaaS providers cover most legal requirements, lightening the load for customers.
  
• Agility and flexibility: SaaS solutions are modular, making it straightforward for enterprises to scale management tools to fit their business.
  

SaaS trends in France

SaaS has been a great success in France. According to CloudZero, 85% of business applications run on it.

Computer companies invest heavily in SaaS. Other industries, such as human resources (HR) and marketing and sales, increasingly turn to it. CRM tools for automated ad campaigns are some of the most popular SaaS usages.

Faced with a continually expanding selection of SaaS systems, organizations have come to expect more comprehensive offerings. French companies are reviewing their SaaS strategy to grow their revenue.

Cloud storage is a must for any successful SaaS vendor. The French government has even launched a cloud strategy to enhance security and remote-server service quaity and increase the nation’s independence in terms of technology.

The future of SaaS

The SaaS market is booming—future solutions will rely on artificial intelligence (AI) to solve companies’ growing needs. SaaS 3.0 is the next generation of software-as-a-service that uses native AI and machine learning.

Building on previous versions, SaaS 3.0 solutions use AI to automate workflows, generate relevant information, and provide personalized user experiences. This evolution is in large part due to large language models (LLMs) and machine learning techniques.

These technologies allow SaaS providers to automate processes from end to end in specific domains, such as CRM, HR, and content creation.

Micro SaaS for small businesses is also becoming more popular, and additional vertical SaaS offerings are being developed to target certain industries. Niche SaaS software is one of many key trends that will redefine the sector in the years to come.

How Stripe Payments can help

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