Software as a service (SaaS), is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted. It is sometimes referred to as “on-demand software”. SaaS is typically accessed by users using a thin client via a web browser. In GenxTs the highlights for SaaS has become a common delivery model for many business applications, including DBMS software, development software, virtualization, accounting, collaboration, customer relationship management (CRM),enterprise resource planning (ERP).
SaaS is closely related to the ASP (application service provider) and on demand computing software delivery models. IDC identifies two slightly different delivery models for SaaS. The hosted application management (hosted AM) model is similar to ASP: a provider hosts commercially available software for customers and delivers it over the Web. In the software on demand model, the provider gives customers network-based access to a single copy of an application created specifically for SaaS distribution.
Benefits of the SaaS model include:
- easier administration
- automatic updates and patch management
- Compatibility: All users will have the same version of software.
- easier collaboration, for the same reason
- Global accessibility.
The traditional model of software distribution, in which software is purchased for and installed on personal computers, is sometimes referred to as software as a product.
Thinking of moving towards a SaaS solution for your sales process? Here are 7 reasons you should.
1. Lower cost of entry
With SaaS, you pay for what you need, without having to buy hardware to host your new applications.
2. Reduced time to benefit/rapid prototyping
In the SaaS model, the software application is already installed and configured.
3. Pay as you go
SaaS software gives you the benefit of predictable costs both for the subscription and to some extent, the administration.
4. The SaaS vendor is responsible for upgrades, uptime and security
Under the SaaS model, since the software is hosted by the vendor, they take on the responsibility for maintaining the software and upgrading it, ensuring that it is reliable and meeting agreed-upon service level agreements, and keeping the application and its data secure.
5. Higher adoption rates
SaaS apps tend to have lower learning curves and higher adoption rates. This can be especially significant given the high cost of on-premises software development and implementation, vs. the low cost of entry for SaaS.
6. Integration and scalability
Most SaaS apps are designed to support some amount of customization for the way you do business.
7. Work anywhere
Since the software is hosted in the cloud and accessible over the internet, users can access it via mobile devices wherever they are connected.