Software as a Service (SaaS)
Software as a Service (SaaS) is a delivery model in which software is used in the browser or as an app and operated centrally by the provider, usually for an ongoing fee instead of a one-off licence.
The provider takes care of servers, updates, security and backups; customers simply use the software over the internet. This reduces their own effort and makes new features available to everyone immediately.
Besides features, selection criteria include data protection and server location, export options for your own data and interfaces to other systems.
trafe, the software for car rental companies from Circle’s group, is an example of SaaS: rental companies use it as an app and in the browser, operated on its own infrastructure in Germany.
What to look out for
- Check where data is stored and whether a data processing agreement is offered.
- Clarify how data can be exported if a switch becomes necessary.
- Check interfaces to your own systems — CRM, accounting, shop.
- Calculate costs over several years and with a growing number of users.
- Compare availability, support and contract terms.
Common mistakes
- Only the entry price is compared, not costs as you grow.
- No thought about data export — until a switch is due.
- Too many separate tools that are not connected.
Frequently asked questions
SaaS fits well when a standard product largely covers your processes. Custom software pays off when processes are a competitive advantage or several isolated tools should be replaced. A combination is also common: standard SaaS plus custom extensions via interfaces.
Yes. With trafe, the group itself develops and operates a SaaS solution — from the app to the backend and infrastructure in Germany.