Software as a Service (SaaS) is an IT services delivery and licensing model in which software is sold on a subscription-based basis and is hosted centrally from the vendor. It can be called “on Demand software” and used by businesses that need to ship their applications quickly and are not in a position to manage a hardware infrastructure. In the early years of this model, vendors would bundle the software with the corresponding hardware at a later stage. For example, an application would come installed with the hardware and only need to be customized with the software at a later stage. This was called “bundling” and made it easy for customers who were not tech savvy to buy into the hardware from a single vendor, and to later add their own software components to the mix.
SaaS is poised to change this paradigm. The new model promises to be very different: once a SaaS web application is installed, the customer does not need to purchase its own hardware and its own software anymore. Instead, the software is purchased through a subscription model where the service provider manages all of its hardware, software and communications, while maintaining the customer’s control over their applications. A more flexible approach towards SaaS delivery models is gaining popularity among small and medium-sized businesses, and it is expected to see a marked improvement in the overall SaaS market over the next few years.
One way in which software as a service has changed how we do business is by removing the complex, expensive infrastructure that underlies traditional application software. Instead, SaaS is delivered via cloud services, where an internet connection is all that is required. There is no need for data centers, employee desks, or any other management system. All of these costs are eliminated through cloud computing, freeing up financial resources for expansion and operational improvements.
This means that SaaS can be more flexible. One example is Amazon Web Services, which is the largest SaaS provider today. They have chosen a robust and scalable on demand delivery model, which enables them to make quick decisions about deployment. Because of their reliability and control, they are able to rapidly adjust their offerings to meet customer demands. When it comes to SaaS and its impact on the delivery model, companies should pay close attention to this critical factor.
Another way that the internet has impacted SaaS is by changing the business model that vendors deliver. Until recently, most techrepublic service providers offered their software and other offerings as subscriptions, requiring the user to pay an upfront cost in order to utilize their technology. In the past several years, however, many companies have chosen to take their technology and SaaS offerings directly to customers. By doing so, they have increased their agility and their control. Now, instead of needing to sign up for a subscription, they can deliver SaaS directly to customers, taking advantage of the additional resources that SaaS brings to the table. In addition to this new mindset, another way that technology has impacted SaaS is the fact that there are now fewer technical barriers to entry, which makes it easier for companies to start and grow their businesses using SaaS.
In short, SaaS offers businesses an unprecedented opportunity to leverage the power of technology. By adopting SaaS immediately, companies will increase flexibility and control within their businesses, while greatly improving the functionality and speed of service provision. As long as there are ways to reduce risk associated with deploying your own internal tech department, SaaS can be a great investment. By combining SaaS with its associated advantages such as support and security, and by providing quality product choices, you can greatly increase your company’s productivity by leveraging the full capabilities of cloud computing.