Difference between SaaS and Cloud Computing

Basics 25 Oct , 2016  

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SaaS is any software application that you run that is not located on your premises. It is a full-blown application, not a component part of something else. Instead of buying the license to use the application, and then paying for software maintenance to support it and keep it current, you “rent” the software over a period of time – usually monthly or yearly. The cost of the SaaS application covers the costs of the software itself and the ongoing operations and infrastructure costs.

You can say that SaaS applications are running “in the cloud,” and you would be correct. But SaaS applications are not the Cloud.

Cloud Computing

Cloud Computing provides computing resources that are not tied to any specific location. Cloud Computing basically consists of:

1. Virtual computers/servers. 2. Data storage capacity. 3. Communications and messaging capacity. 4. Network capacity. 5. Development environments

In other words, Cloud Computing is for software developers, application vendors, savvy computer users, and corporate IT departments, not for people who use computer applications.