SaaS Hosting: Definition, Benefits, Features & Hosting Types

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Software-as-a-Service (SaaS) is a business model that allows you to deliver your application or software to users via the internet.

So, for users to access your application, you’ll need SaaS hosting.

That said, there are many factors you need to consider when choosing the best SaaS hosting option. To ensure your application runs smoothly, it has to be scalable, secure, and so much more.

Not sure how to pick the right SaaS hosting for your business? Read along and find out all about SaaS hosting, including its benefits, features, and the best hosting types.

What is SaaS Hosting?

saas hosting

SaaS hosting is a web hosting service used to deliver web applications over the cloud.

Simply put, for your application to be accessible to users via the Internet, you need to host your application on a hosting server.

With SaaS hosting, you’re using a third-party hosting provider to host your web application. As such, SaaS hosting eliminates the need for managing the complex infrastructure required to host an application on-premise.

SaaS hosting allows you to update and maintain your application at the server level. Your customers can easily access your application or software via their browser without having to install it or update it on their computer.

Benefits of SaaS Hosting

SaaS hosting offers multiple benefits over on-premise application hosting, including:

  • Easier implementation and maintenance. Traditional on-premise app hosting requires significantly more effort. That’s because you have to install and maintain the hardware yourself. With SaaS hosting, however, you don’t have to worry about any of this.
  • Cost-effective. Typically, SaaS hosting is less expensive than on-premise app hosting. Not to mention, you don’t have to hire IT specialists to maintain your hardware.
  • Security is a top priority for all SaaS businesses. For this reason, SaaS hosting includes robust security features that ensure your data and applications are safe and secure from malware, DDoS attacks, hackers, data breaches, and such.
  • Faster and easier updates. With SaaS hosting, your users don’t have to download software updates and patches. Instead, you can simply update the software in the cloud, which only takes seconds. The update will reflect for all users.
  • Faster access. With the use of a content delivery network (CDN), SaaS hosting allows your customers to reach your services from a server near their physical location. This allows your customers to access your application much faster.

Top 5 Features to Look For in SaaS Hosting

To choose the best SaaS hosting solution, look for these 5 most important features:

#1. Scalability

Scalability is vital to growing your business. So, no matter if you’ve been in business for years or run a fresh startup, it’s crucial that you choose a scalable SaaS hosting solution.

In short, server scaling allows you to add resources to your server so that it maintains top-notch performance regardless of the amount of incoming traffic to your web application.

This way, scalability helps you avoid server downtime and facilitate business growth, making it one of the most important features of SaaS hosting you should look for.

#2. Uptime

High uptime is crucial for any SaaS business.

If your web application isn’t available to users, you’ll inevitably lose customers and revenue. This means that even a few minutes of server downtime can have serious consequences on your business.

So, to avoid the negative consequences of server downtime, make sure to choose a reliable hosting provider.

To ensure that your web app is maximally accessible to your users, your best option is to look for a hosting provider that guarantees at least 99.9% uptime.

#3. Performance

You want to make sure that your web application runs smoothly as intended, which is why performance is another important factor when choosing SaaS hosting.

If you’re sharing server resources with other users, your web app performance might drop. This can result in long load times and, in the worst case, downtime.

So, if you’re looking for a SaaS hosting solution that offers reliable performance, your best option is to invest in a dedicated server.

#4. Security

With 60% of small companies closing in just 6 months due to cyber attacks, security is a vital feature for any online business, including SaaS.

Besides putting your customer data at risk, security breaches can also negatively impact your business by damaging your reputation.

Because of this, you want to look for SaaS hosting that includes as many security features as possible, including:

  • Web application firewall.
  • DDoS protection.
  • Malware scanning.
  • User authorization.
  • Security certificates.

#5. Pricing

Depending on the hosting provider and hosting plan, SaaS hosting can differ in pricing.

That said, it’s important to choose a hosting plan that’s within your budget, especially if your business is still new and growing.

If you run a startup, for example, you might want to consider the pay-per-hour or utility pricing model before investing in a more expensive hosting plan.

But, although some hosting providers also offer free hosting, it isn’t a viable option for hosting SaaS applications due to its limitations such as performance, scalability, and others.

As a general rule, the pricing reflects the features you’re getting with your SaaS hosting. For example, dedicated hosting is typically the most expensive option. However, it offers more security, flexibility, and better performance than other hosting types.

Best SaaS Hosting Types

While there are many hosting types, not all of them are suitable for SaaS application hosting.

So, here are the best SaaS hosting types:

#1. Dedicated Hosting

saas hosting

For many SaaS businesses, dedicated hosting is by far the best SaaS hosting type.

Simply put, dedicated hosting means that you have a bare metal server all to yourself.

As such, dedicated hosting allows you to have full control of your server. This means you have unlimited access to all of its resources without having to share them with other websites and web apps.

For this reason, dedicated hosting offers multiple advantages over other hosting types, including:

  • High performance.
  • Robust security.
  • Root access.
  • Reliability.
  • Highly qualified and responsive technical support.

#2. Managed Dedicated Hosting

Managed dedicated hosting is another great option for hosting SaaS applications.

With managed dedicated hosting, the hosting provider is responsible for managing your dedicated server.

Typically, your hosting provider will offer the following managed services:

Unlike dedicated hosting, managed dedicated hosting doesn’t require you to hire IT specialists to manage your dedicated server. This makes managed dedicated hosting a great SaaS hosting option if you value convenience.

#3. Cloud Dedicated Hosting

With cloud dedicated hosting, you get a virtual server that’s hosted on the cloud and can be accessed remotely using a cloud computing platform.

Among other cloud computing benefits, cloud dedicated servers run on a cluster of servers, making it an extremely reliable hosting solution. This means that if one server fails, another server will automatically take over the workload.

Not to mention, automatic scaling also allows your web application to effectively handle traffic surges and maintain high performance at all times.

That said, compared to dedicated hosting, cloud dedicated hosting may be less secure as you’ll be sharing the hosting space with other users.

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SaaS Hosting: Definition, Benefits, Features & Hosting Types

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