The Rise of SaaS and Cloud Computing: How They Transformed the Software Industry

History of SaaS.

The history of SaaS (Software as a Service) can be traced back to the 1960s when mainframe computers were first used to provide time-sharing services to multiple users. However, SaaS, as we know it today, gained popularity in the early 2000s with the advent of the internet and cloud computing.

CRM (Customer Relationship Management) and ERP (Enterprise Resource Planning) were among the first business applications to be offered as SaaS solutions. Salesforce, founded in 1999, is one of the earliest and most successful SaaS CRM providers. It quickly gained popularity for its innovative approach to CRM, which made it possible for businesses to access customer information from anywhere with an internet connection.

Cloud computing played a significant role in the growth of SaaS. Cloud computing refers to the delivery of computing services, including servers, storage, databases, networking, software, analytics, and intelligence, over the Internet. This allowed businesses to access powerful computing resources without the need for expensive on-premises hardware and software.

Today, SaaS has become the dominant model for delivering business applications. CRM and ERP continue to be popular SaaS offerings, along with other applications such as HR management, project management, and accounting software. The benefits of SaaS include lower upfront costs, flexibility, scalability, and ease of use.