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Software as a Service (SaaS) utilizes economies-of-scale for majority costs of operating the software, including the installation and deployment cost, production infrastructure, operations costs, upgrade costs, and many support costs. Instead of each customer incurring these costs separately, a SaaS provider distributes these costs over all the customers, immensely reducing the total cost of ownership for each customer.
No matter what type of business you are going to create—you need some form of capital. You need money to buy the raw materials for any kind of establishment. This is where SAAS comes in. Also referred to as software as a service, this is a kind of software deployment model where application vendors would make their programs available on demand to their clients. Precisely speaking, rather than purchasing the very expensive software, all the clients need to do is to rent them.
Reasons of Using SaaS in Business
If you are in doubt about whether to use Saas for your business or not, perhaps the following reasons will make the decision so much easier:
1. You don’t need to spend thousands of dollars for your programs. Instead of spending large sums of money for software that could be installed in only one computer, you will only have to pay for the monthly subscription for your SaaS. You also have the choice of whether to pay monthly, quarterly, or yearly.
2. You can change your software provider more conveniently.
3. There is no need for you to pay for upgrades. When you have stand-alone programs, it will be your responsibility to ensure that they are always properly maintained as most of them do not provide free upgrades. This means that you can expect to pay huge sums of money every year for the renewal of your license or upgrade. You will not have to worry about this when you have a SaaS provider.
4. You would not have to pay more for labor.
5. All your data is kept safe and secure.
Part of the subscription plan is data backup and recovery. All your information is stored in different servers. This means that every time you save on something, another copy of it is already created somewhere else. SaaS vendors would just put restrictions on administration of the software.
SaaS are indeed helpful for those who are managing their own business, from small- to large-scale enterprises. You get access to programs that are very useful, and yet there is no need to spend a lot for them.
How SAAS Benefits Industries
SAAS can deliver tools to a variety of industries. It is normal to see web-based tools used in airline reservations, customer service, accounting, and technical support. Connection to the Internet is a must. But because it is managed in a central location, it is possible to access programs in any online computer. Patches are not needed anymore because updates can be applied the next time the program is opened.
Home computing will experience more of the SAAS model. Photoshop Express and similar products will do well because they are currently free. However, it is possible that local users will be willing to accept a subscription or a one-time fee, with the programs accessed via web browser. For instance,Google Docs and ZOHO tools work in any browser and offer great functionalities. It is gaining acceptance to users because there is no need to take up space in the computer itself.
Google has been developing applications that can be operated through the Internet such as Google Docs and Calendar. Both programs only need a browser and an Internet connection to run. Files are stored in a central server and be even shared, enabling collaboration.
Even Microsoft has released an online version of its popular Office applications. This further solidifies the role SAAS will play in the future of business and computing.
SAAS is here to stay
Software as a service has changed the scene for companies of all sizes by opening up new software product possibilities.Today software as a service is getting acceptance because it allows users and
Another reason for the popularity of SAAS is its alternative pricing structure. Applications deployed through SAAS are often priced generally lower than the usual licensing fee. At the same time, the user can work from his home PC and still use the same program at no added cost.