SaaS and Cloud Computing are two sides of the same coin. Yet, there exists a bold line between them which distinguishes these services on the basis of risks and rewards attached. Before proceeding towards the differences between Cloud Computing and SaaS, let us discuss a little about Internet. 

Internet and Cloud are interchangeably used. An example of the same is the paper The Self-governing Internet: Coordination by Design, which had been published by MIT Professors Sharon Eisner Gillett and Mitchell Kapor back in the year 1996.

History Bites on the Internet:

Back in the days, people would rent stints on a mainframe computer. This was followed by the advent of PCs or personal computers. Users gradually became accustomed to having a computer on their own desk; they would install shrink-wrapped software on the PC for an optimized performance. Gradually computers were upgraded with software and data backup facilities.

Amazingly, history is repeating itself now because the world is returning to the days of renting time on someone else's computer. The only difference is that instead of having one mainframe computer, we are now making use of a group of computers which reside in a clandestine data center. Additionally, the launch of mobile computing devices has made us step out of our homes and still carry out computer-based tasks. A few years back, this was only a dream!

Now let us back to our topic, which is 'How Cloud and SaaS are poles apart?'

Knowledge Nibbles on Cloud Computing and SaaS:

In cloud computing, you use a computer that resides externally or away from your physical location. It is a form of SaaS or 'software as a service' where a user is billed directly or indirectly for the offerings. E.g.: Microsoft's Office 365 (direct billing) and Gmail/Mint/Facebook (indirect billing). The software is installed and maintained on remote computers and its convenience is delivered to you or the user through a web browser. Thus internet connectivity allows you to carry out all business/personal tasks with the help of SaaS.

Distinction Between Cloud Computing and Software as a Service:

Cloud Computing

- Cloud computing environment can be tailored to suit business needs
- On-demand increase of managed dedicated server capacity or server storage space
- Elasticity to decrease or increase resources and costs as per demands
- Highly customizable approach applied

SaaS

- SaaS limits you to the features written into the software
- This is not available
- A set fee per user, per month for availing a fixed functionality
- One-size-fits-all approach applied

Users outsource care and maintenance of servers to Cloud computing provides who specialize in managed dedicated servers. New servers are provided within a jiffy! Moreover, with cloud hosting based computers, computer applications get easily hosted. Thus, a user can maintain applications on the server unlike SaaS, where it is not possible.

Hence with cloud computing, you can leverage automatic software upgrades that gets physically installed, access data records and well as benefit from automatic data backups. No wonder it is a step above SaaS and not to forget, is powered by WWW.