Cloud Vs SaaS App: What's the Difference?

Rating — 5·7 min·November 30, 2023
Cloud Vs SaaS App: What's the Difference?
Cloud Vs SaaS App: What's the Difference?
Learning about the IT industry and ways to deliver your future app is impossible without considering SaaS vs Cloud. Below, you can take a look at the basic facts you need to be aware of and decide on a better solution for your business
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While chasing the idea of your next project, you may have become acquainted with many technical methods, tools, and definitions. Surely, SaaS vs Cloud concepts belong to the list of things you have heard much about, but you still need some details to make the right choice for your future app.

These two concepts are closely related and quite different at the same time. To understand the difference, you must understand the basis of each concept, its specifics and benefits.

Now, have a glance at the most important things you need to be aware of when analyzing Cloud vs. SaaS.

What is cloud computing?

Cloud computing provides all internet users with access to computer system resources without needed to run the software on your own servers. Instead, you get remote access to all the needed resources.

You can get the infrastructure for this on-demand, and employ one of 3 types of  cloud computing for your future project:

  • Enterprise
    In this case, your organization only has an opportunity to use cloud resources.

  • Public
    If many companies, organizations, and independent users have access to the cloud, then it is called “public.” Amazon Web Services is a great example of a public cloud.

  • Hybrid
    This is the combination of two above types.

A cloud service should include:

  • Virtual server

  • Data storage

  • Network features

  • Communication features

  • An environment for development services

What is cloud-based software? This is a type of software stored not on a physical server but on a virtual one. This term is actively used by engineers and is something a non-technical specialist doesn't have to deal with.

Top 5 benefits of cloud computing

For a better understanding of what we are talking about, get acquainted with the benefits of this technology:

Great agility

Specialists who use cloud computing instead of traditional servers for their app have a unique opportunity to provide users with never-before-seen flexibility and agility. Infrastructure expansion can be easily achieved by just ordering more space on the cloud.

Resources of the cloud are unlimited, so you can use as much of them as you need.

Saved costs and payment for usage

The first thing to mention here is that SaaS cloud computing does not demand for physical servers to be bought and stored in your office. Another critical fact is that your expenses consist of 2 key components:

  • Payment for the time you use the cloud

  • Payment for the amount of data you store

No additional expenses.

Access from anywhere

You can access a cloud-based app from any place in the world with an internet connection. Even if something happens to your device, you can still enter the cloud and work with your data. Cloud is available 365 days a year, and you can always contact a cloud provider if an issue appears.

Security as a superpower

Cloud technologies protect your data in the best way. Due to their virtual essence and multi-tenancy features, they are hard to hack. By using advanced encryption methods, the highest level of data protection can be reached.

Need to build a secure custom solution? Cloud is your choice.
Find out how your business can benefit from implementing cloud software

Technology of tomorrow

Cloud computing has opened a new age in the IT industry. This smart approach handles millions of users worldwide and addresses several global man-made issues:

Carbon footprint

The essence of cloud technologies is digital, thus, there is no need to utilize hardware.

The usage of cloud-based apps decreases the carbon footprint.

Smart energy usage

You as a business owner use the amount of energy you need and avoid any extra energy losses that may occur with traditional data storage on servers.

Now that you better understand what cloud computing is all about, let’s have a closer look at the software as a service.

What is SaaS web app?

An SaaS app is a software solution that is stored in the cloud. Yes, you got it right, cloud computing is usually a component of software as a service, but not vice versa.

Instead of running your own software on your server, you rent it (or buy a license for a defined period) from a vendor.

Using SaaS application, you do not have to buy infrastructure, spend money on maintenance or fixing, worry about hosting, etc.

Your software provider handles every issue,the  SaaS servers, and maintenance tasks while you employ a solution for your specific needs.

However, with SaaS, you don’t get a fully customized solution developed specifically for your needs. At the same time, by opting for this method, you have an opportunity to get a high-quality software tool that covers the majority of tasks common for your industry. And all this is done at a lower cost when compared to custom software.

Top 5 benefits of SaaS

SaaS app development has gained popularity due to the numerous advantages it demonstrates. Here, we are going to list the top benefits you get with SaaS:

Minimized effort

Thinking about ordering an app on-premise you should get ready for myriads of questions to answer.

  • Do you have a development team?

  • How do you hire specialists who can construct an app for you or how to outsource your app development?

  • What technologies and tools should you use?

  • How can you design the app in the best way?

These and many other questions will follow you wherever you are. However, with cloud-based SaaS solutions, you can resolve them automatically. You only need to take 2 steps:

  • Find a solution that caters to your needs.

  • Pay for a license.

And that’s it! No headache needed.

Affordable prices

Traditional app development is not cheap. You will need to spend money on salaries, hardware, hostings, and many other extra elements. It requires huge investments from the very beginning. A Cloud SaaS app requires subscription costs only.

Choosing SaaS, you do not have to invest thousands of dollars initially.

You just pay for a monthly subscription, make sure this app is really what you need, and decide whether you want to keep using it.

Immediate access

Let’s have another glance at on-premise app building. To begin, it requires too much time. You will need to wait for your engineering partner to produce a custom fully-functional solution. SaaS eliminates this issue.

You can employ a SaaS cloud app the moment you pay for it.

Immediate updates

Vendors take care of each upgrade, too. You don’t need to download new versions or install additional software packages. The app you use is always up-to-date.


If any issue appears, you have a reliable partner you can contact. Your vendor’s support team is responsible for handling potential complications and answering your questions, so you are never left alone with the software you pay for.

SaaS vs Cloud: Answering critical questions

Let’s dig into key differences. Here, the answers to three primary questions will be useful.



Cloud Computing

What is it?

A ready-made app hosted on the cloud.

Resources, environment and capacity for data storage and software development.

What are the costs?

Set by a vendor, with the price for subscription depending on each particular app.

Set by the service provider, payments depend on time and resources used.

When should I opt for it?

You need a cheap and simple SaaS in cloud computing here and now.

You run a corporate software that, in turn, requires resources. You require full control over stored data and want your data to be highly secured.

Numerous SaaS startups have become successful and hundreds of companies worldwide have grown their businesses on the basis of cloud technologies. You decide what example is most inspiring and which approach will fit your needs best.

In conclusion

In addition to the described facts, there is an array of technical specifics and differences. We have experience in both delivering software as a service in cloud computing and cloud-based custom apps. We design, develop, maintain, and protect our customers’ products, so just drop us a line in case if you have any remaining questions.

Cloud or SaaS? Which one is the solution for your business?
Discuss your case with an experienced business analyst

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