Blog - Miscellaneous

SaaS – Software as a service

Written by: Dan C, on 2012-11-15

SaaS (Software as a service) is a software delivery model in which software with it’s associated functions and data are hosted in the cloud. SaaS is available to customers over a network, typically the Internet, via a web browser

SaaS is a common delivery model for a huge number businesses, including: enterprise resource planning (ERP), human resource management (HRM) accounting, customer relationship management (CRM), content management (CM) and many more.

For decades, companies have run software on their own computer networks. The biggest advantage Saas has to offer is lowering the IT support costs by outsourcing hardware/software maintenance and support to the SaaS providerCustomers don’t need to buy software licenses or additional equipment anymore, and usually pay monthly/yearly fees for using the software.

Benefits of the SaaS model include:

  • easy administration
  • global accessibility
  • automatic updates
  • all users have the same version of the software
  • easier collaboration
  • lower software prices

SaaS disadvantages

  • The most critical question is whether a company wants to rely on software that was designed for use by hundreds of other (similar) companies. So you can forget about terms like competitive advantage or differentiation based on the software used.
  • Some markets require specific business applications for which SaaS solutions may not yet be available.
  • Some companies find it difficult or even impossible to relinquish control and trust third parties to manage their private data.
  • Risk of data loss if the vendor goes out of business.

 

Do you need and SaaS solution for your business? Tell us about it and we’ll provide you with a free quote.