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Does your business know about SaaS?

In previous months, we’ve discussed emerging technologies like virtualization and cloud computing. Today, however, we wanted to address another budding technological innovation: SaaS, or Software as a Service. While it’s true that SaaS has been around for the last 10 years or so, it’s only recently become advantageous for organizations to utilize.

Does your company know about SaaS and how it can improve business?

To start, let’s explain what is meant by the term “software as a service.” Essentially, SaaS is when a vendor provides a software application for use on-demand. In effect, you’re paying to use a product, not to own it. As a result, companies will often utilize a pay-as-you-go model for SaaS applications. Perhaps it sounds counterintuitive at first, but with this particular service model comes a number of benefits.

For instance, say your organization needs a specific, specialized software application in order to function. Traditionally, your business would have to buy this, no doubt, very expensive software, install it on only one machine, waste time troubleshooting problems, and spend more money on upgrades as the years went by. With a SaaS model, your company pays for that software only when they use it, has the ability to use it on more than one machine, and doesn’t have the headache of upgrades or troubleshooting the software, as the SaaS provider utilizes its own team of IT professionals and computer experts.

Generally, SaaS has a number of characteristics that distinguish it from traditional software:

  • Network and web-based. This means employees can access the software from practically any machine, anywhere.
  • Centrally managed. End-users no longer are responsible to maintain, upgrade, and troubleshoot applications.
  • One-to-many. Applications are purchased on a one-to-many ratio instead of one-to-one.

As you can see, SaaS poses a number of implications for business operations, so next week we’ll discuss how your organization can fully utilize the benefits of software as a service.

[photo:dieterpetereit]

Additional Resources:

Virtualization and Small Business

Cloud Computing: What and Why?

Small Business Planning: Hiring The Experts

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One Response to “Does your business know about SaaS?”

  1. Linsey Minning Says:

    Good Site on Cloud Computing and SaaS – We are periodically looking for good blog information
    related to SaaS. Will be back to review more information on your blog.

    Keep up the great work!

    Thanks

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