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Software as a Service (SaaS) is transforming how organisations manage software applications, offering an efficient alternative to traditional on-premise systems.
Delivered via the cloud on a subscription basis, SaaS allows organisations to reduce complexity, control costs, and respond quickly to changing business requirements. But what makes SaaS particularly valuable, and how can you determine if it’s the right fit for your organisation?
This article explores the benefits of SaaS, considerations, and practical applications for the modern age.
What does ‘SaaS’ mean?
SaaS refers to software delivered via the cloud and accessed through the internet, typically on a subscription basis.
Instead of buying software outright and installing it on individual computers or servers, organisations subscribe to SaaS applications hosted by vendors. These vendors manage infrastructure, security, and ongoing software updates, significantly simplifying customers’ IT responsibilities.
This model offers users access from virtually any location, enabling staff to connect and collaborate remotely using only a web browser or app, without needing extensive hardware or complex on-premise software installations.
What is ERP Software?
Learn how TechnologyOne’s SaaS+ ERP solution accelerates implementations. Reduce risk and enhance outcomes with one unified approach. Book a demo today!
Learn moreA brief history of SaaS
The origins of SaaS date back to the 1960s, when IBM's Compatible Time-Sharing System (CTSS) allowed multiple users to access software via a single mainframe computer, laying the foundations for network-based software delivery. Before this, everyone relied heavily on manual processes and standalone systems. Imagine that today!
In the 1990s, Application Service Providers (ASPs) offered software online but faced challenges with scalability and integration. In 1999, Salesforce introduced web-based customer relationship management (CRM) software, significantly influencing software delivery models.
TechnologyOne, founded in 1987, became Australia's largest ERP SaaS provider, developing an integrated platform tailored specifically for industries such as local government, higher education, and asset-intensive sectors.
Cloud vs on-premise: what’s the difference?
The primary difference between SaaS and traditional on-premise software lies in how applications are hosted and managed.
On-premise software is installed locally on a company's own servers, requiring ongoing internal IT support, manual updates, and significant upfront investment.
SaaS, on the other hand, is delivered via the internet, or ‘the cloud’, with providers managing maintenance, security, and upgrades.
TechnologyOne exclusively offers SaaS solutions, removing the complexity and high costs associated with traditional on-premise systems.
SaaS vs PaaS vs IaaS
Cloud computing is commonly delivered through three primary service models: Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS).
- SaaS provides fully hosted software applications delivered via the internet, cutting the need for users to manage hardware or software maintenance.
- PaaS gives developers a cloud-based platform to create, test, and deploy applications without maintaining the underlying infrastructure.
- IaaS offers foundational computing resources like servers and storage, giving organisations greater flexibility but requiring them to manage operating systems and data themselves.
Understanding these distinctions helps organisations select the cloud solution that best aligns with their technical needs and business goals.
Read more about the differences between the three in our article:
How SaaS differs from PaaS and IaaS
Explore the differences between SaaS, PaaS, and IaaS. Learn how each cloud service model works and identify which best suits your organisation's needs.
Learn moreWhat are the benefits of SaaS?
SaaS offers a range of operational and strategic advantages, particularly for organisations looking to maximise their potential. Key SaaS benefits include:
- Lower upfront costs: SaaS eliminates the need for large capital investments in hardware and infrastructure by shifting spending to a predictable subscription-based model.
- Faster deployment: Applications are ready to use almost immediately, significantly reducing implementation time compared to traditional software.
- Automatic updates and maintenance: Vendors manage software upgrades, security patches and system maintenance, reducing IT overhead and ensuring users are always on the latest version
- Scalability: SaaS platforms can easily scale to meet changing demand, allowing organisations to expand or reduce usage without reconfiguring.
- Remote access and flexibility: Users can securely access SaaS applications from any device with an internet connection, supporting flexible work environments.
- Improved security and compliance: Leading SaaS providers invest heavily in cybersecurity and compliance, often exceeding the capabilities of in-house IT teams.
- Better resource allocation: By outsourcing infrastructure and maintenance, internal teams can focus more on higher-value activities.
Together, these benefits make SaaS an ideal choice for organisations looking to modernise their operations without the burden of managing complex infrastructure.
What are the benefits of using an ERP system?
Explore the key benefits of ERP software, from cost savings and productivity to sustainability and compliance. Learn how ERP drives digital transformation.
Learn moreSaaS pros and cons explained
| Pros of SaaS | Cons of SaaS |
|---|---|
Note: these are general only, and do not apply to every SaaS provider.
Who benefits from SaaS?
SaaS delivers value across a wide range of sectors and roles. At TechnologyOne, we work closely with local councils, government departments, higher education providers and asset-intensive industries to ensure our SaaS ERP solutions support their unique operational and regulatory needs.
Below are some of the sectors and roles that benefit most from a SaaS approach:
Local government
Councils use SaaS to improve service delivery, automate manual tasks and provide more transparent, accessible services to residents. SaaS platforms also support mobile workforces and digital customer portals.
State, territory and federal government
Departments and agencies benefit from SaaS through stronger audit trails, faster policy implementation, and reduced operational risk. With secure, IRAP-assessed platforms, SaaS supports regulatory compliance as well.
Education
Universities and TAFEs use SaaS to manage the entire student lifecycle - from enrolment to graduation - while streamlining finance, student management, and HR. SaaS also supports hybrid learning models and real-time decision-making.
Asset-intensive industries
Organisations responsible for managing critical infrastructure and assets benefit from SaaS through improved lifecycle planning, predictive maintenance, and real-time asset visibility.
Finance and corporate services
Finance teams use SaaS for real-time budgeting, forecasting, and compliance reporting without relying on manual spreadsheets or outdated systems.
Health and community services
Organisations in this sector use SaaS to streamline core functions like rostering, payroll, and workforce management, ensuring compliance while freeing time to focus on patient and community outcomes.
SaaS example: HR and payroll benefits
SaaS is particularly effective for HR and payroll teams, offering integrated, automated processes that make things easier for all staff members, not just HR and payroll.
Mornington Peninsula Shire provides a clear example. By adopting TechnologyOne’s SaaS-based Human Resources & Payroll (HRP) product, the council replaced outdated, manual processes with a single, unified platform.
This transition enabled them to digitise critical tasks such as leave applications and onboarding. The result was a dramatic reduction in paperwork and a more agile HR function that could better support a modern workforce.
“Creating position changes is now about 1,000 times more efficient than before. Payroll no longer requires daily integration files, which has allowed us to reduce payroll headcount.”
Carly Amado
Why are so many organisations choosing SaaS?
SaaS adoption is accelerating as organisations move away from outdated, resource-intensive systems. TechnologyOne alone now supports more than 1,300 customers across local government, higher education, government, and other sectors.
Instead of managing infrastructure or coordinating manual upgrades, teams can focus on delivering services and making faster decisions with access to always-current software.
In Australia, research by IBRS and Insight Economics estimates that SaaS could deliver over $250 billion in economic value over the next decade, while also boosting GDP by 1.3%. Much of this comes from reduced implementation timeframes, stronger data protection, and better alignment with modern business models.
As more teams look for ways to modernise without adding risk or cost, SaaS continues to offer a practical, future-ready path forward.
How to choose the right SaaS platform
Not all SaaS offerings are created equal. When evaluating a platform, it’s important to look beyond basic features and consider long-term fit. Factors such as data security, implementation timeframes, local support, integration capabilities and industry alignment all play a critical role in success.
Organisations should also assess whether the platform is built to scale, how often it is updated, and what responsibilities stay with internal teams versus the provider. Choosing a provider with deep expertise in your sector can reduce risk and deliver faster results.
How to choose the right ERP system for your business
Discover how to choose the right ERP system for your business. Learn key factors, features, and best practices to find the perfect ERP solution.
Learn moreChoose SaaS+
TechnologyOne’s SaaS+ model offers more than just software — it’s a new way to implement and operate enterprise systems. Delivered through a single annual subscription, SaaS+ combines industry-specific ERP solutions with implementation and support, removing the need for traditional, long, and costly consulting projects.
SaaS+ is secure, IRAP-assessed and purpose-built for sectors like government, higher education, local councils and regulated industries. As the only Australian ERP provider that owns the entire value chain - from product to implementation - we help customers go live faster and focus on delivering better outcomes.
Ready to see what SaaS+ could do for your organisation? Book a demo with TechnologyOne today.
Book a demoSaaS ERP FAQs: TechnologyOne
Need more information? Read some of our most frequently asked questions (FAQs) around all things SaaS, ERP, and more.
SaaS+ is TechnologyOne’s all-inclusive enterprise solution, providing a fully managed, end-to-end digital transformation experience. Unlike traditional SaaS offerings, SaaS+ includes everything from software implementation, upgrades, support, and security, all for a single annual fee.
For more details, visit the SaaS+ information page .
SaaS+ goes beyond traditional SaaS by including implementation, upgrades, security, and ongoing support in one annual fee. With SaaS+, TechnologyOne takes full accountability for delivering the entire solution experience, not just the software.
ERP (Enterprise Resource Planning) software is a system that integrates and manages core business processes such as finance, human resources, supply chain, and customer relationship management into a single platform.
The timeframe for ERP implementation varies based on the complexity of the organisation, data migration needs, and customisation requirements. On average, ERP implementation can take around 12 months, with larger-scale implementations taking longer. Some can take over 700 days!
At TechnologyOne, our goal is to get you to ERP in 30 days, drastically decreasing implementation time and improving time to value.
Our award-winning CiA (Connected intelligence anywhere) platform delivers a single solution for our communities, enabling possibilities now and in the future.
Through CiA, customers gain access to the full functionality of our enterprise software on any device, anywhere, at any time. Organisations can embrace iPad, iPhone, and Android devices as part of their enterprise solution and our adaptive screen design guarantees a great user experience regardless of the device.
