SaaS - Definition
- The most complete cloud computing service model is one in which the computing hardware and software, as well as the solution itself, are provided by a vendor as a complete service offering.
- SaaS is a model where an application is hosted on a remote data center and provided as a service to customers across the internet.
- In this model the provider takes care of all software development, maintenance and upgrades.
- Salesforce.com is a common and popular example of a CRM SaaS application.
- Many people believe that SaaS software is not customizable, and in many SaaS applications this is indeed the case. eg: user-centric application like office suite
- Many other SaaS solutions expose Application Programming Interfaces (API) to developers to allow them to create custom composite applications eg: Salesforce.com, Quicken.com, etc
- The software is available over the Internet globally through a browser on demand
- The typical license is subscription-based or usage-based and is billed on a recurring basis
- The software and the service are monitored and maintained by the vendor, regardless of where all the different software components are running
- Reduced distribution, maintenance costs and minimal end
- user system costs generally make SaaS applications cheaper to use than their shrink-wrapped versions
- Such applications feature automated upgrades, updates, and patch management and much faster rollout of changes
- SaaS applications often have a much lower barrier to entry than their locally installed competitors, a known recurring cost, and they scale on demand
- All users have the same version of the software, so each user's software is compatible with another's
- SaaS supports multiple users and provides a shared data model through a single-instance, multi-tenancy model
- No large upfront costs - usually free trials
- Anywhere, anytime, anyone - mobility
- Stay focused on business processes
- Change software to an Operating Expense instead of a Capital Purchase, making better accounting and budgeting sense.
- Create a consistent application environment for all users
- No concerns for cross platform support
- Easy Access
- Reduced piracy of your software
- Lower Cost:
- For an affordable monthly subscription;
- Implementation fees are significantly lower
- Continuous Technology Enhancements
- Initial time needed for licensing and agreements
- Trust, or the lack thereof, is the number one factor blocking the adoption of software as a service (SaaS).
- Centralized control
- Possible erosion of customer privacy
- Absence of disconnected use
- Not suited to high volume data entry
- Broadband risk
- where you don't have to buy new hardware or update software
- where you pay nothing or pay as much as you use
- where everything is done as a service: Infrastructure, computing, storage and usage
- where you don't worry about your resources spent on Infrastructure security and operational security where you cut your IT spending
- where you have freedom of usage from anywhere with internet connectivity
- which is eco-friendly
- Salesforce.com
- Google Apps
- Gmail, Google Groups, Google Calendar, Talk, Docs, etc
- Google Apps Marketplace (Google apps for both free and for a fee)
- Microsoft Office 365
- Office 365 is a subscription-based online office and software plus services suite which offers access to various services and software built around the Microsoft Office platform
- SaaS is still relatively new and untested
- SaaS is just another version of the failed ASP and hosting models of the past and will suffer the same fate as its predecessors
- SaaS only relieves companies of the upfront costs of traditional software licenses
- SaaS is only for small and mid-sized businesses and will not be accepted by large-scale organizations
- SaaS only applies to applications such as CRM and Salesforce automation
- SaaS will only have a minor impact on the software industry and will fade over time
- It will be easy for the established software vendors to offer SaaS and dominate this market
- SaaS is only for corporate users
Traditional packaged Software |
Saas |
Designed for customers to install, manage and maintain |
Designed from the outset up for delivery as Internet-based services |
Architect solutions to be run by an individual company in a dedicated
instantiation of the software |
Designed to run thousands of different customers on a single code |
Infrequent, major upgrades every 18-24 months, sold individually to
each installed base customer |
Frequent, "digestible" upgrades every 3-6 months to
minimize customer disruption and enhance satisfaction |
Version control |
Version control |
Upgrade fee |
- do - |
Fixing a problem for individual customer |
Fixing a problem for one customer fixes it for everyone |