What Is The Difference Between SaaS And Cloud Computing? Find Out Here

Understanding technology terminology is extremely important in today’s day and age because it determines how you interact with them on a daily basis. If you run a business or have superficial knowledge about IT, then you might have heard words like Cloud Computing and SaaS. But what do these terms actually mean and how do they differ? Here are the key differences between Cloud Computing and SaaS.

What is Cloud Computing?

Cloud computing enables data centers to be available to users over the internet. It can be referred to as the on-demand availability of servers, databases, storage, networks, and other computer systems. Cloud computing, also known as cloud, is a mainstream technology that is extensively used by businesses. You can log into the cloud system through any device that has access to the internet. There are many advantages to using cloud computing.

For instance, you do not need to worry about the security of the services that you use for your software applications. You also don’t need to take care of hosting, maintenance and upgrading. Real-time data is easily accessible at all times and costs for the rented space are within an affordable range.

What is SaaS?

SaaS, or Software as a Service, is a type of delivery model where a cloud software application is licensed to a user. It can be accessed through any device connected to the internet and you won’t need to install it locally. Since the application is run on the SaaS service provider, you don’t have to worry about security, maintenance, or performance aspects. You can access real-time data at an affordable place whenever you want to.

Key Differences: Types

Clouds fall under three main categories: Public cloud, Private cloud, and Hybrid cloud. Public cloud is accessed by multiple users or clients within the same shared external infrastructure. Private cloud is a subscription-based service that can be used by only one user according to their needs. A hybrid cloud combines both private and public cloud variations. For instance, an organization, within the same infrastructure, can store sensitive information separately from information available to the general public. But both end-users can use the application freely.

SaaS has three main types: Packaged clouds, Collaborative Software, and Management tools. Packaged clouds are the main deliverables used by the SaaS business model. It has several utility options such as HR and CRM which are commonly used by many organizations and product development. Collaborative software is used for combined projects such as web conferences, emails, messaging, documentation centralization, etc. Management tools used for monitoring and testing purposes are highly useful tools for the development process that are integrated into the SaaS platform.


Cloud: Used for photo editing software, digital video software, online file storage, creating image albums, spreadsheets, web applications, word processing applications, eCommerce software, presentation software, etc.

SaaS: Used for human resources, CRM, collaborative communication, customer service, management, eCommerce, software development, business intelligence, analytics, supply chain, accounting, budget reposting, etc.

Cloud is much more diverse in its applications than SaaS. The main difference between Cloud Computing vs SAAS is that SaaS services are fully formed end-user applications while cloud computing is the handling of infrastructure and services that users can rent. Cloud computing can be used to make up an entire company’s infrastructure, so it often happens that SaaS is a sub-component of Cloud computing.

Data Control

With Cloud, you have more control over how the data is stored. Service providers have control over data storage in SaaS, so sometimes security might be compromised. In cloud-based computing, data doesn’t exist in physical on-site servers, but you can still control the flow of data and regulate how it is processed and secured.


With cloud, the main server is hosted remotely by a third party, and software applications can be customized and managed by the user. The user or organization is given access to their data stored in the server through the internet. SaaS, however, is a subscription-based service that you pay to use. It is an already developed cloud-based software application you can access through the internet. So, you don’t need to take care of software maintenance. You do, however, have limited control over the management and customization of the application.

Comparing The Advantages and Disadvantages of Both

Cloud is cost-efficient and high-speed. It is a reliable application that offers customization and collaboration opportunities. It has quick and easy development and provides data backup and restoration as well as auto integration facilities. It is perfect for fast and effective virtualization and can be accessed regardless of device or location. You may, however, run into technical issues while using it and have lower bandwidth and a lack of support. SaaS on the other hand has limited control on the user’s end and is not diverse in its applications. However, it is easy to access, quick to set up and upgrade and has low up-front charges.

Understanding the differences between the two is essential to knowing which one to choose based on the business you run. It is not a given that what works for one business will work for you. To make the right choice when it comes to choosing between Cloud computing and SaaS, consult an IT expert who will guide you based on your business’s needs.