Software as a Service
Software as a Service (SaaS)
SaaS eliminates over the counter software
The new SaaS model means that end-users will no longer need to locally install software, updates, and upgrades. All software runs on the server side with updates and upgrades managed by the host. Taking the place of a traditional over-the-counter software sale, the SaaS model allows for a subscription based purchase, often with monthly or annual agreements. Some organizations do not require a contract, relying solely on their high quality of service to maintain customer loyalty.
By the year 2009 SaaS sales are projected to reach $10 billion. Progress OpenEdge (Progress.com) is considered a top-tier development platform for creating service-oriented standards-based minimal administration SaaS applications.
The SaaS model can save money
The Software as a Service, or SaaS, business model can be applied at significant cost savings across the board, from various applications to collaboration software such as instant messaging (IM) to email, operating systems and Customer Resource Management (CRM). The SaaS model works by enabling a company to receive software applications through a monthly subscription, eliminating many of the costs associated with traditional over-the-counter software packages.
SaaS Advantages
- Immediate Cost-Savings
SaaS solutions do not require investment in capital and are often up to 90% more rapid than traditional locally installed software, and there are fewer hidden costs, according to the Software Information Industry Association (SIIA.net).
- Costs Kept Low
Estimates state that over 60% of your IT staff's time and budget are used to uphold your network architecture and maintain upgrades. Software as a Service means someone else is doing this for you, while you sit back and relax.
- Allows On-Demand Access to All Applications
Via the Internet, intranet, or extranet, clients and employees can access your applications, email, IM, file sharing, shared calendars organization-wide, virtually anywhere
- Communicate in Real Time, Anywhere
Whether it's getting email or Instant Messaging on your BlackBerry or viewing your project manager's shared calendar to coordinate and book a meeting, managers, employees, and customers can communicate in real time from any location.
Contributors
1. ihill. 19 February, 2008. On Demand IT Solutions.
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