What Is Software-as-a-Service? and its benefits?
July 8, 2008 2 Comments
For decades, companies ran their software on their own infrastructure. Software as a service (SaaS) is a new software delivery model where a software vendor develops web-native software and hosts and operates (either independently or through a third-party) the software for use by its customers over the Internet. Customers do not pay for owning the software itself but rather for using it. In the SaaS scenario, a software provider is responsible for its availability (maintenance, scalability, disaster recovery, etc.).
Like any other multi-tenant models, SaaS is truly based on multi-tenant architecture where software, server hardware and their on-going maintenance are shared by all customers but customers’ data are kept virtually separately. SaaS is typically thought of as a low-cost way for businesses to obtain the same benefits of commercially licensed, internally operated (by customer) software without the associated complexity and high initial cost.
a2z Applications.com provides its On-Demand Software Platform as a Service (It is also known as Platform-as-a-Service) where customers can develop not a single software application but multiple applications such as Sales, Marketing, Billing/Invoicing, Human Resource, Activity Management, Issue Management etc. off the same business data.
SaaS is a fast emerging software concept that allows you to “consume” software as a subscription via your internet browser. Software-as-a-Service (SaaS) or On-Demand software has eliminated the Total Cost of Ownership (TCO), headaches of infrastructure and ongoing costs that traditional software requires. Below are the biggest advantages of SaaS model.
Low Cost of Entry
As SaaS is delivered to customers as a subscription model, customers don’t have to pay big money upfront for rolling out a complex solution across the entire company. Customers can initially roll out for one test department of few people. The risk is very low even if it fails, and they don’t have to involve their busy IT staff. a2z applications.com offers a simple pay-as-you-go pricing with no long term contractual requirements.
ZERO Infrastructure, ZERO IT Headaches
Since SaaS model has come into existence, investing in expensive infrastructure is no longer required. a2z applications.com monitors its platform – servers, software, networking components etc round the clock to ensure the SaaS platform is up and running at optimum speed. Customers will need to have basic computers with just internet connection and web browser. No more 800-page planning and implementation guides.
Less Investment Risk
As small and midsize companies live in fear of the failure rates of large-scale ERP and CRM implementations, SaaS model gives them a great relief. They can implement their business solutions on a2zapplications.com platform with virtually ZERO risk involved and achieve the highest return on investment. Basically, instead of owning the software and necessary hardware components fully at the beginning of the implementation, customers pay monthly for using software, not owning- the monetary risk is much lower and less scary.
Freedom of Choice of Vendors
With SaaS, unsatisfied customers can cancel their subscriptions and switchover to another provider easily as there is no locked in investment regarding hardware, software or data center.
Continued…
Onus Is Always On The Vendor
If vendor’s software causes any big issues that prevent their customers from using the software, the vendor won’t be getting money from any customer for long. The vendor is always motivated to fix the problem.
Economies of Scale
Subscription costs for SaaS software reflect the economies of scale achieved by “multi-tenancy”. Multi-tenancy means that all customers run their applications on a single instance of software. This makes the overall system scalable at a far lower cost which means that the cost of software, infrastructure and expertise is shared by a large number of customers.
Shorter Deployment Time
With SaaS, software solution can be deployed in days and weeks, rather than months to years with traditional licensed software.
Increased Accessibility- Any Time @ Any Location
For years we have all played by the rules. You work in a cubicle, with a workstation, and interact with your team behind the firewall. But times have changed. Your co-workers, customers, your partners don’t sit in the same building. With the help of this platform you can do your work anytime and from anywhere. All you need is an internet connection, a computer/laptop and your imagination. You can update/share data, follow up constantly with your co-workers, customers, and partners when you are in the office or at home or on a business trip. Virtually with availability of cheaper broadband and wireless connections your business goes wherever you go on this earth. Is not it amazing? Your business critical data is always at your finger tip.
Improved Security
As data security is most important for any business, the vendor provides the highest security at all possible levels- network, infrastructure, server and software. As the highly qualified security professionals and technologies are involved for monitoring and response to network and application breaches and attacks round the clock, customers can rest assured their data is more secured than any on-premise or hosted solution.
Infinite Scalability
As SaaS is mainly designed for multi customers, the scalability automatically becomes an important design factor for the product from the beginning. A2zapplications.com is well designed and fit to accommodate its customers’ growth. Customers can add more users and applications instantly as they grow without any scalability issues.
Greater IT Department Focus
SaaS offloads a great deal of IT pains incurred by software consumers in the traditional client/server model. This leaves IT personnel to focus on improving the day-to-day technical operations of their company instead of being called upon to troubleshoot third party software or maintain aging infrastructure.
Service Level Agreement (SLA) Adherence
Bugs reported by customers will be analyzed and fixed and the rollout of a patch or fix will happen on the same day.
Constant, Smaller Upgrades
With SaaS, it is in the best interest of the vendor to keep customers happy and they can do so by constantly improving the application experience and adding new features to the platform in the form of consistent miniscule changes that add up over time instead of monster patch and upgrades that cost you time and money to implement and to be trained.
Hi there,
My name’s Krystal and I work at collaboration software company Central Desktop.
I just visited your blog and read your latest post on Saas *Pretty Nifty* Of course, I’m a new reader… HELLO to ALL! Lol!
Anyway, I thought you might be interested in participating in our upcoming webinar, Why SaaS Matters”.
…just a little FYI…
Thanks again and I’ll visit again soon!
Krystal
Oh yeah, if you don’t mind, please spread the word
It’s a well-written article.
SaaS-guru