Software as a Service (SaaS)

September 4, 2013 Aerocom

 
With the growth of technology and the use of the internet, Software as a Service or SaaS, is being used by all leading enterprise software companies. Companies are hoping to reduce IT Support costs by outsourcing hardware to the SaaS Providers. SaaS is a software program in which the associated data are hosted by the Cloud. Cloud computing or Distributed Computing, involves a large number of computers connected typically through the internet or through real time communication.

SaaS, is a distributing model that is hosted by a vendor or a provider and can be used typically over the internet. SaaS is based off of the Application Service Provider’s model (ASP) which was originally focused on more third-party software, whereas SaaS develops and manages their own software. Companies using web browsers or “Thin Clients”, which is a computer system that relies heavily on another computer are using SaaS due to the following benefits of the model:

  • Easy Administration
  • Automatic Updates
  • Consistency of the software
  • Global Access

Typical software programs can be purchased with an upfront cost and downloaded onto your personal computer. SaaS, is priced with an annual or monthly application fee that will provide a competitive price for on-premises software and allow the user to engage in the benefits on a less contracted basis.

Another benefit of using SaaS software, because it is centrally located, is that it is updated more frequently and accurately then on-premises software. Based on certain configuration options, SaaS will allow the consumer to customize their software-such as their own customized logo, custom colors etc., and each consumer can create their own “look and feel” of their software.

One criticism to the use of SaaS, is the idea of sending your data to the provider and allowing them access since it comes from a central location.

Although with little criticism, SaaS and cloud computing are seemingly becoming the leading trend throughout enterprise software companies as far as software providers.

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