What “software as a service” means

The idea

Software as a service, or SaaS, is software you use through a web browser or app, running on the vendor’s servers. You pay a subscription, usually per user per month. Microsoft 365, online accounting, payroll and customer databases are common examples.

What changes for a business

• The vendor runs it. They handle servers, updates and uptime. You do not need your own server for it.
• You still own your side. Who has accounts, how they sign in, what they can see and what data goes in remain your responsibility.
• Your data lives with the vendor. It is worth knowing where, how it is backed up, and how to get it out.
• Costs are ongoing. Subscriptions are easy to start and easy to forget. Unused accounts keep billing.

Questions to ask before signing up

• Can we turn on multi-factor authentication, and sign in with our Microsoft 365 accounts?
• Can we export our data, in a usable format, at any time?
• What happens to our data if we cancel?
• How are backups handled, and can we restore to an earlier date?
• Who in our business owns the account and the bill?

Keep a list

Write down every subscription the business uses, who owns it and when it renews. It saves money and makes it much easier to remove access when people leave.