Understanding SaaS: Commonly Used SaaS Terminologies and Acronyms

You don't need to be an expert in cloud computing to sign up for a subscription, but you should be familiar with the SaaS acronyms used in the industry.

Cloud computing is one of the most popular buzzwords in today’s world. It can be challenging to understand all technical jargon, but users need to know what they are signing up for before entering a contract. Let’s learn more about the SaaS acronym as we go along.

Software as a service has helped small and medium-sized businesses grow without investing in expensive hardware. Many of these companies are on the brink of financial collapse because they can’t afford new software or upgrades. Still, SaaS levels the playing field by providing access to some significant technology.

It’s essential to know some common SaaS acronyms and terms in the business world.

Cloud computing has its fair share of jargon and abbreviations like any other industry. However, most are easy to understand or can be learned when signing up for a subscription with them. The list is long, but this post focuses on the ones you should know first.

saas terms

1. SaaS

This is a software delivery method in which the user can access and use it through their web browser. It’s hosted on remote servers, so you don’t need to worry about maintenance or backups.


2. Cloud Computing

saas terms

The “cloud” is a term that refers to the internet. Its computing power, storage, and apps are delivered on-demand over the internet instead of in an office building.

Cloud computing is a new way of doing business. Click To Tweet

Instead of buying servers and building IT infrastructure, users can rent access from providers on an as-needed basis for a monthly, quarterly, annual fee that’s typically less than what they would spend if they had their hardware setup.

Users pay for their services when they need them, which is more accessible than managing everything themselves. The cloud has evolved since its early days and now includes a variety of types of service, including storage, raw processing power processing capability (i.e., servers), networking capabilities (Internet access), networking capacity; artificial intelligence; natural language processing; office apps like Microsoft Office 365 or Google Apps for Work; CRMs like Salesforce CRM Online or Oracle’s Siebel 12c Cloud Service; computer-aided design software programs such as AutoCAD OnLine Services

In the old days, people used the term ‘cloud’ to represent certain technologies that were not important for them. In this case, cloud computing is used as it relates to hardware and OS being irrelevant because of its location.

Many people feel that geography is irrelevant in the cloud computing business, but it matters. The servers need to be located close enough, so there are no latency issues for users who want access to an app. Data sovereignty also needs consideration as a user’s data should reside on foreign soil.

For example, many European businesses are worried about the U.S.’s privacy and data storage policies because their country’s laws can differ significantly from America’s.

Cloud computing is not just about SaaS (Software as a Service) but also includes IaaS, PaaS, BPaas, and many other different types of services.


3. Private Cloud

In the past, it was difficult for companies to get access to cloud computing because of its high costs. But now that private clouds are available and have been used by many large businesses such as Microsoft, Google, Amazon Web Services (AWS), developers can finally work on projects with many data processing requirements.


4. Hybrid Cloud

The hybrid cloud is a better solution for most businesses because it allows some data to be stored in public clouds while others remain private. Click To Tweet

This also means that business owners have more flexibility when deciding what services they use and how much work each one does.


5. Migration Costs

Moving data from existing applications and systems to the cloud is costly. The cost of this depends on how much data needs to be migrated, but some businesses will have to completely re-optimize their current database for use in the cloud, which could lead to abnormally high migration costs.

Moving to the cloud is not an easy process. Apps4Rent can help you with Office 365 Cloud Migration and other critical migrations at a reasonable cost, as well as round-the-clock support.


6. App Integration

saas terms

When you use app integration, your data can be shared across different platforms and software. For example, if I have a contact list of thousands of people I want to keep in touch with through email marketing or leads management systems, it makes no sense for me to create new lists every time the system changes.  


7. SLA

The Service Level Agreement is the most important agreement that specifies what to expect from a provider. This includes service availability and uptime, mean time to respond and repair, penalties for late delivery or unavailability of promised services, etc.


8. Churn

It’s the rate at which subscribers cancel their subscription to a recurring SaaS product. The 10% churn means that ten out of every hundred people have canceled during a specified period.


9. Lifetime value

Lifetime value is a statistic that can estimate the average revenue from subscribers over their time as customers.


10. Bookings

Bookings are a great way to see how many new customers have signed up with the service. Bookings provide information about contract worth, which is especially useful for providers of lead-generating apps.


11. Multi-tenancy

It can be more economical for SaaS providers to share databases among customers. However, if the shared database is hacked, you risk compromising your data

Single-tenant SaaS may be the right choice for you if your company is large and privacy is a concern. However, it can cost more than multi-tenant because each customer gets their app instance.


12. BYOC

Bring Your Own Cloud is a new trend that involves employees using 3rd party cloud apps to supplement company IT resources. For example, an employee might use Google Drive or Dropbox for sharing files and MailChimp for email marketing.


13. DaaS

Virtual desktop infrastructure is a system that offers users access to an operating system, which can be hosted in virtual machines. This type of DaaS allows for easy operation on any computer, but there are many different providers, and each one has its way of providing this service.

DaaS is a more reliable option for business owners who want to work on their desktop whenever they need it without the hassle of setting up and maintaining it. Apps4Rent has years of experience with DaaS, making them an excellent choice if you’re looking for this type of service.


14. Cloud Bursting

Cloud-bursting is when a business uses the provider’s system during times of high demand. This allows them to focus on their core competencies and effectively manage spikes in workload.


15. Cloud Portability

Cloud portable apps allow users to quickly move their data from one cloud service provider to another. These apps also give users more freedom because they are not locked into any particular company.


16. Cloud Spanning

Cloud spanning is the process of linking together different cloud services, whether they are from one provider or multiple providers.


17. Cloud Sourcing

Cloud sourcing is a combination of cloud computing and outsourcing, which means that certain business functions are outsourced to providers.


18. Cloudware

Cloud software is another name for applications that run over the internet.


19. Latency

The time it takes for data packets to cross the connection between two computers. The lower the latency, the faster and more responsive your internet is.


20. VPC and VPN

A Virtual Private Cloud is a cloud segment that can be accessed over the internet, providing security. A virtual private network allows for secure transmission by creating an encrypted tunnel.


More Posts:

SaaS, Software-as-a-Service

SaaS: A Comprehensive Guide to Software-as-a-Service in 2023

The world of software has evolved tremendously, and one of the most notable developments is Software-as-a-Service (SaaS). SaaS has transformed how businesses operate, offering a

SaaS Products: Software-as-a-Service is all about the Product

Explore the key fundamentals of SaaS products and common reasons for their failure. Dive into the importance of cultural focus, simplified pricing, and why SaaS is all about the Product.

Send Us A Message

%d bloggers like this: