SAAS

Software as a service (SaaS) is a software application delivery model where a software vendor develops a web-native software application and hosts and operates (either independently or through a third-party) the application for use by its customers over the Internet. Customers do not pay for owning the software itself but rather for using it. The term SaaS has become the industry preferred term, generally replacing the earlier terms Application Service Provider (ASP) and On-Demand.

The key business benefits of SaaS include:

Better Cost management : No need to invest in up front investments. SaaS offers a consistent monthly / annual) fee structure that helps make it easier to budget and match expense to revenue streams.

Corporate flexibility and agility: If an organization needs to make any change, such as a merger, acquisition or reorganization, SaaS allows greater flexibility to do so quickly, easily and with few financial repercussions.

Faster time-to-value : It shortens software implementation, accelerating the time that organizations can begin using and realizing value.
Greater focus on the business: By removing the IT burden associated with traditional software implementations and maintenance, SaaS frees IT professionals to focus more of their resources on returning higher value to the business.

Updated On: 09.10.04