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Difference Between Cloud Computing and SAAS

Cloud Computing vs SAAS

There is a lot of buzz nowadays about cloud computing with Google leading the way in bringing it to the mainstream. In simple terms, cloud computing moves the software away from the computer and into the internet to make it easier for the end user to maintain his software. Another related terminology is SAAS, or Software as a Service. The biggest difference between the two is technical in nature. Cloud computing is an architectural concept that lays-out where the software is to be located and how but does not indicate how payment is to be facilitated. On the other hand, SAAS is a model for monetizing the cloud computing architecture. Under SAAS, a company can provide software to the customer via the cloud under different payment schemes. It could be via periodic subscriptions, time limited basis, or pay as you go. Some companies can even provide free use of their software if they have other ways of generating revenue; i.e. via ads displayed to the user and such.

There is also a major difference when it comes to software and data. Under SAAS, the software and information reside with the service provider. This is a perk for ordinary users who benefit from increased security but for large corporations whose data is often confidential in nature, it can be a major problem. If needed, a company can build their own cloud computing network and make it available to their employees via their own internal network and the internet. In this model, the software and data resides with the company and not with other entities. This safeguards them from intentional and unintentional leaks that can be detrimental to their business strategy.

The emergence of cloud computing is certainly a step forward for technology in general as it would make it possible to have fully secure computers that are protected from threats by professional grade measures. The appearance of SAAS as a monetization scheme also indicates that cloud computing is not just a mere concept. It is a sustainable model that can be successfully implemented in a capitalist world.


1. Cloud computing is an architecture while SAAS is a monetization model
2. The software is not yours under SAAS but it can be in cloud computing

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