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Software as a Service (SAAS)

BY: Deena David | Category: Sales-Marketing | Submitted: 2010-06-29 12:38:57
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Article Summary: "Software as a service is not a new concept. Read on to learn more about this concept..."

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The use of software in different businesses and interested parties is a scenario where the software is commonly hosted by the software developer and delivered to every user over internet and this is called Software as a Service (SaaS). Every user is provided with the same code and the code is centrally hosted by the developer. There are also some names that are used in place of SaaS and those are "on-demand", "remotely-hosted" and "Application Service Providers ASP".

Every user pays the developers of the software for the host of the software. Now in market there is an issue about the use, benefits and disadvantages of the SaaS. SaaS was first conceptualized in 1990's and after that it has gained hype in the market. The users are greatly accepting this concept and it has great importance for the users.

The major example of SaaS is antivirus that is developed by a company as every user is provided the same version which means that the same code is installed on every user's personal computer. However the updates of the software are provided globally through internet.

The famous computer magazine Gartner says that in 2012, e 30 percent of the customer services and support application will be based on the models provided by SaaS. Gartner also predicts that the customer services applications provided by SaaS will grow 20 percent in 2012. Now it can be easily predicted as to how much SaaS has potential.
There are different companies those are providing services that can be called as SaaS. Although it has been 20 years since SaaS has entered the market, this concept is still evolving and increasing. The companies who provide services like SaaS are still struggling very much. is the most successful company that is based on SaaS model through internet.


SaaS has different attributes.

i Cost For Infrastructure

The major advantage that can be got from SaaS is its no infrastructure cost model. You can get the upfront license and ongoing updating that you are running on your computer without saving the infrastructure on your computer.

ii Human Need

The need of human resources to maintain the software is so less so it has less maintenance cost. The companies providing services of SaaS needs less human resources but they can handle a large number of customers.

iii No maintenance headache

The user of the SaaS doesn't need any maintenance as the developers of the software take this responsibility.

iv Cost For Implementation

The implementation cost of SaaS is too low. So the companies providing the services of SaaS can get more revenue that helps the companies to grow more. It can help the companies to forecast, plan and to get appropriate position in the market more easily.

v Customization Issue.

The customization option is very much less as users has same code as others have, although companies claim that they are providing very much customization.

vi Scalability issue.

The software is very hard to integrate and they also are less scalable, but the software based on SaaS is very much scalable and very easy to integrate.

SaaS has its own standards for integration so it differs from other models.

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