What does “True SaaS” mean?

Published 4/4/24

Software as a Service (SaaS) has become the go-to choice for businesses seeking flexibility, scalability, and a reduction in IT headaches. But with the growing popularity of SaaS, a term like “True SaaS” has emerged.  What exactly does it mean, and how is it different from other types of SaaS deployments? 

SaaS: A Recap

Traditionally, SaaS refers to software accessed through a web browser, eliminating the need for local installations.  Subscription fees cover access, maintenance, and upgrades, all handled by the vendor. This frees up your IT resources for more important tasks and keeps your software current. 

The “True” in True SaaS

The concept of “True SaaS” goes beyond just cloud-based access. Here are the key characteristics that define a true SaaS offering:

  • Multitenancy: Multiple customers share the underlying infrastructure, but their data remains isolated and secure. This efficient resource utilization allows for lower costs and scalability as your organization grows.
  • Automatic Updates: Upgrades and new features are rolled out automatically, ensuring everyone is on the latest version without any manual intervention on your end. Last year, InvoiceCloud deployed over 360 improvements to our platform that were made instantly available to all our customers.
  • Standardized Configuration: True SaaS has a single codebase for all users. Customization options are available, but this ensures a consistent user experience and enables businesses to quickly and easily deploy the InvoiceCloud solution. 

Beware of Cloudwashing

Some vendors engage in “cloudwashing,” where they simply offer a web interface to access traditionally on-premise software hosted in the cloud.  This falls short of true SaaS because it lacks features like multitenancy and automatic updates.  You are still responsible for maintenance and upgrades, negating some of the key benefits of “True SaaS.”  Some terms for cloudwashed SaaS include:

  • Hosted:  Traditional software installed on the vendor’s servers and accessed remotely through a web browser.
  • Single-Tenant SaaS: This offers a web interface but caters to individual clients with dedicated resources. While technically cloud-based, it deviates from true SaaS with higher costs, limited scalability, and less flexibility. 

The Right SaaS for You

InvoiceCloud is run on a “True SaaS” platform, we automatically deliver product enhancements and updates directly to your system without any downtime or disruptions to your business. By understanding the meaning of “True SaaS” and being wary of cloudwashing tactics, you can reap the full benefits of this powerful software delivery model.