A Software as a Service consists of using an application that does not reside in the company’s facilities but is hosted by the developer or provider of the service. In this way the users of the contracted applications access and work with the software remotely through the Internet.
The use of Software as a Service (SaaS) is growing especially in the markets of applications used for the management of human resources, web content, email, customer relations (CRM), videoconferences, accounting and ERPs.
Software as a Service apps run on the owner distant servers that is why Software as a Service is also recognized as web based software or on demand software. You can make use of Software as Service apps by means of your browser.
SaaS is well-liked in the middle of businesses and it is become the most general delivery technique for venture apps in areas like bookkeeping, venture resource planning and virtualization.
The focus on the distribution model is key because it totally changes the way we use technology. Previously, companies had to develop or buy an application that fit their specific needs. Up there, everything normal. The problems came when the application was damaged, needed service or was becoming obsolete. For example, an advertising agency, whose focus is not the IT infrastructure, does not have to be solving the problems presented by changing the version of its favorite graphic software.
In the past, the most logical thing to do was to buy software that would allow it to do this efficiently, install it on its own servers and start working. Now, with SaaS, the most logical thing is to let another company specialized in technology make the application, administer it and secure it. This model has two main advantages: cost and strategic value.
When the software started selling as a service, the change was mainly made to save costs. The equation is relatively simple. Why am I going to spend thousands of dollars on software that can become obsolete in a few years when I can simply rent one that is always up to date? In addition, in this way an investment in capital can be converted into an operating expense of the organization.
Features of SaaS
- Lower software costs
In general, SaaS is a cheaper service than licensed applications, since they usually have upgrade and support charges, in addition to the initial cost.
- Software without maintenance
It is not necessary to install, configure or provide support to the applications: the provider is solely responsible for these tasks and, even, performs the updates and installs the patches.
- Quickly scalable
As your business grows, you can expand your SaaS subscriptions with ease, and it will be equally easy to cancel them in the event that your staff is reduced.
- Protection against disasters
In the event that your business is affected by natural or man-made disasters, your employees will continue to have access to your SaaS applications and your data, as these will be secure in the provider’s data center.