Nowadays software-as-a service (SaaS) is the most promising development in marketing and business world. Despite the increasing popularity and market share of SaaS, traditional in-house software vendors still seem to be resisting this concept. However, as time moves on and individuals grasp a better understanding of Cloud Services the number of firms are adopting.

What is Software as a Service (SaaS)?

Software as a Service (SaaS) is a software distribution model in which applications are hosted by a vendor or service provider and made available to customers over a network, typically the Internet. Cloud technology is paid incrementally, the firms don’t have to pay extra money for modules they don’t even use. It literally removes the maintenance, end user support, and administration costs of the software. The implementation and customization costs of SaaS are also lower than the traditional software.

In the SaaS approach, software vendors design their solution to be delivered via the Internet using a common web browser. SaaS applications are typically hosted at discrete data centers that are owned or leased by the vendor. The SaaS model uses multi-tenant architecture, which means SaaS customers share common parts of the application while their data and business process configurations are stored separately. A hallmark of SaaS is subscription pricing, which includes the use of the software, support, and access to all upgrades, patches and service packs.

Benifits Of SaaS?

1. Reduced Cost

Cloud technology is paid incrementally, saving organizations money. There is no up-front IT infrastructure or technology development investment.

2. Low Financial Risk

Many traditional on-premise applications carry with them an initial license fee, and once the implementation has been completed, there are recurring fees for support and maintenance, along with disruptions associated with upgrading the product to a new version. SaaS is different. There is no up-front IT infrastructure or technology development investment, and the recurring costs are predictable. There are no hidden costs for upgrades or maintenance - these are all included in the subscription. This results in an overall lower total cost of ownership, and avoids large capital outlays in favor of lower operating expenses. And, there isn't a huge sunk cost. After the subscription or contract period ends, the customer is free to terminate.

3. Easy Access

A major advantage of SaaS is it can easily and quickly be accessed from anywhere with a web browser. This gives users a great facility even when they are at home or in another country. They can access real time synchronized applications from Laptops and Smart Phones.