What is SaaS

By now (year 2010) most of the computerized world has heard of the expression “SaaS”.

OK, so what if you know that it stands for “Software as a Service”? SaaS represents a lot more than a definition, it is a flexible computing concept that due to its flexibility is quickly becoming a standard for a lot of businesses.

The big question is – “Do you really know what SaaS means, and how you or your business can benefit from it?”

The Definition:

SaaS (Software as a Service)is a web-based, on-demand distribution model where the software is hosted and updated at a central site and does not reside on client computers/servers. SaaS services could be FREE or billed through subscriptions or usage licenses.

SaaS applications are hosted and run by service providers, saving the end user the upfront investment in software purchases and the ongoing upkeep and maintenance.

Businesses use a pay-as-you-go method (typically monthly) for SaaS applications allowing them to save their capital for core business functions.

The Benefits:

  • Financial — SaaS is subscribed to and not purchased.  The end users are offered less costly and more predictable monthly fees, with no capital expense.
  • Ease of use — SaaS applications can be easily accessed anywhere the Internet is available through a web browser, thus taking advantage of attributes like usability and innovation of the web.
  • Uptime — Server applications are hosted in a highly-available datacenter, minimizing the effects of power outages and Internet outages from incidents that affect local offices.
  • Installation Ease and Low Maintenance — upgrades and patches to latest versions take little time and reduce resource requirements.
  • Access Anywhere — customers can connect to their applications anywhere with internet connection.