Software as a Service (SaaS) Today’s business world demands that business owners quickly adapt to a changing environment. Businesses can improve internal operations when they are able to adapt to emerging technologies trends to reduce operational costs and ultimately improve service to clients. Businesses that fail to adapt find that attempting to function using old, supposedly tried-and-true methods and technologies can cost them significant amounts of money.
When deployed correctly, Software as a Service (SaaS) can help your business reduce overhead costs associated with managing software installed and maintained on servers and client workstations. Software as a Service, also known as “software on demand” provides for quick deployment for many types of corporations and works particularly well within certain types of business operating models. Evolution of Software as a Service (SaaS)
SaaS began with the development of hosted software space that first appeared commercially in 1998. These first-generation SaaS applications were applications that allowed Web-based access to software through a subscription from the SaaS vendor as opposed to traditional application licensing for software purchased “off-the-shelf. ”
The licensing model encourages software vendors to restrict the use of their applications by objectively defining how and when the application software can be used. The EULAs (End-User License Agreements) define precisely how an application can be used.
With SaaS, conventional CD software installation onto a workstation is completely done away with, and customers are granted full access to the application from their desktop PC. The PC essentially becomes a “thin client” when using SaaS; virtually all access functions are executed on the vendor’s server in a remote data center. Basically, the desktop PC becomes a client and the vendor serves up the application(s) on demand; hence, SaaS is basically software on demand.
At first, only certain companies were eager to adapt to SaaS. However, this group of companies made waves in their respective industries by becoming operationally effective when using SaaS. Today, more often than not, software is developed using the SaaS model because this delivery mechanism is a good fit for certain business operating models.
SaaS is rapidly becoming a preferred delivery vehicle for corporations around the world. In certain instances, business owners are particularly happy with the total cost-of-ownership savings of the SaaS solution compared to that of buying software through conventional reseller channels. With the only financial responsibility in the form of a recurring subscription fee, costs are constant and predictable with SaaS. As many business owners know, this is not the case with perpetually licensed out-of-the-box software. By the third year of ownership of licensed software, total cost of ownership increases because many vendors are pushing for new hardware equipment and other upgrades to your IT infrastructure.
Software as a Service (SaaS) Defined SaaS is just what the term implies: Software is supplied as a service by the software vendor. The application resides off-site at the vendor’s datacenter where the vendor is responsible for maintaining the data, servers and all other related hardware. Access to the remotely located application is granted by a subscription that allows end users to utilize the software. Users run the SaaS application over the Internet.
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