SaaS Development

The personal computer and the Internet have been the two driving forces in today’s businesses. The personal computer has made a lot of tasks easier and has streamlined a lot of operations within an organization while the Internet totally changed the business model of a lot of companies, because it was able to reach an audience far from what traditional media could ever hope for.

Now, the Internet and personal computers are changing the landscape again by changing how software is deployed to businesses and users.

The current trend is slowly moving toward Software as a Service or SaaS. Many companies are warming up to the idea of getting the same level of results but with lesser costs.

Software Delivery in the Past
Home users and businesses have similarities when they need a particular application.

Individuals would order the software online and have it shipped right at their door. They also have the option of buying the software at a retail store. The product came in a box complete with the installer and perhaps a manual.

Installation would take less than an hour as the computer met the minimum requirements. Licensing rules mean they can only install it on a single machine at a time. Businesses follow the same route except that they are only handed a couple of discs to install the program into their PCs.

Volume licensing agreements meant they can install the software on a given number of machines; if they have to install on more PCs, they would have pay additional licensing fees.

Better bandwidth made it easier for software to be delivered online than on retail discs. After payment of necessary fees, businesses and home users alike will simply wait for the installer to finish downloading, and installation will follow immediately. Updates and patches are applied online as well, but the software still needs a space on your hard drive. However, further developments meant it is now possible to run entire applications online, giving birth to SaaS.

Advantages to Business
The maturity of several web platforms such as PHP, Java, and Ajax made it easier for software developers to deploy software in a new way: through the web browser. Users will simply have to be connected to the Internet and point their browsers to specific URL in order to run their needed applications. The actual program is kept on a central location, which means it shall be easier for developers to manage the software.

No Installation
For businesses, it meant that there is no need to install software anymore. All they need is a computer with a working operating system and a web browser that is either built-in or is downloadable for free.

No More Patches
This was a common headache for users as they struggle to keep application up to date and secure by means of regular patches. This time around, the upgrades and patches are applied the next time they use the application.

Fewer IT Staff
As a direct consequence to centralized access, businesses do not need to have a dedicated team of IT personnel since deployment and maintenance of the software is done online. This is one way that businesses can keep the costs down.

Remote Access
It is now possible to use the same applications while on the road as long as they have a working Internet connection. It does not matter if you are using a different computer as long as you are a registered user of the program.

Flexible Fees
Most SaaS implementations used the subscription model, which is more cost effective than purchasing software licenses for a certain number of PCs. Support services are also covered in the subscription fees. Furthermore, if the application or the developer does not meet your needs anymore, you can stop the service and find another company.

Fast Deployment
The reason why you can easily switch to another service is the fact that no installation is needed. Minor changes can be made to the application to adapt to the requirements of your businesses, but its migration to a different application becomes easier.

The popularity of Software as a Service is becoming stronger every day that even software giants are testing out the model to regular individuals. It will not be a surprise if in the next few years you will be writing documents or handling spreadsheets online rather than opening a program from your computer.

Have you ever used Google’s set of online applications? Unknowingly, you have using their version of Software as a Service or SaaS.

Google Docs allows you to prepare documents, spreadsheets, and even presentations in programs that work inside your web browser. This means all you need is a computer and an active internet connection and you can start working already.

Even before Google, there are already several software developers that use SaaS as a way to deliver applications to their clients. Other software giants have also announced web versions of their popular apps soon.

Why Is SaaS possible?
The maturity of the Internet has been one of the driving forces of SaaS. Current bandwidth means it is possible to run more complicated applications online without affecting its quality. It has also allowed people from different locations to collaborate in a much easier way. Then you have web platforms that enabled the development of programs that can run over browsers. Such platforms like Java and Ajax help gave birth to websites that provide a variety of tools for their users.

What Makes SaaS Work?

No installation
A major reason is that there is no need for installation. Just launch your web browser, point to a specific site and you will be able to run the programs. Gone are the days of having to purchase retail boxes of software or waiting for a download to finish. You will also save hard drive space since the application will reside on a central location. This means more room for the actual documents that you are working on.

Businesses also like the idea of zero installation because it will reduce their need for a massive IT department. At the very least only a small plug-in will be required for most online programs to run on a browser. Even if a new browser is needed, it will have zero costs at all.

No Need for Patches
Businesses often do not like the idea that the software they purchased has a major bug causing it to be vulnerable or even crash on certain machines. Before, the only way to fix this was to download a patch from the developer’s website. Here since the application is accessed on one location, problems can easily be identified and can even be rectified on the fly. Else, the fixes can be applied the next time users would access the program.

Remote Access

This is another benefit of applications stored in a central location. You can basically work on a file anywhere you are as long as the computer is connected to the Internet. This is also beneficial for businesses with several outfits across the country.

More Manageable Fees
For now individuals are enjoying the use of most online applications for free, and some companies have vowed to stay that way. Others are planning to use the subscription model so that you only pay for the times that you would need the product. There is no need to be tied with licensing that prevents you from using a program on a different computer as well.

This will also sound good for businesses since volume licensing has been the only way for them to use a program on multiple computers. Subscription fees are often cheaper than having to purchase software licenses directly. Besides, there is still a possibility that they will end up upgrading their software after a few years which would also entail costs. The SaaS model ensures that individuals and business have access to the latest versions of applications and the necessary support that they need.

Challenges for SaaS
For now it is also the limitations of the Internet and the web platforms that will determine the major impact of SaaS. Current abilities of programs are very limited and bandwidth issues mean that it cannot work on larger files. Software developers may also have to spend for the maintenance of their servers that host these programs.

Then you also have the issue of security. Since you are working online, how safe are the documents you are working on? There are even applications that let you store files online, and it very essential that only the specified users can have access to certain data. IT personnel must also find a way to prevent unauthorized users from using the applications.

Have you ever used Google Docs or Photoshop Express? If you have, then you must have enjoyed the ability to work with documents and images without having to install anything to a computer. At the same time, you can share what you have made with other people without having to use flash drives since all files are saved on a central server. These online programs are a part of a growing movement to free tools from the computer and instead be delivered through the Internet. This model is called software as a Service or just SAAS.

This development can give benefits to normal users and businesses that, making SAAS just as important as the personal computer and the Internet itself. The fact that big software companies like Google and Microsoft is creating their own web-based programs means that SAAS will become the standard in the future.

How Things Work Before

In the past, to use a program one must purchase it a computer specialty store or have it delivered. These programs would come in packages that would include installers and some manuals. Small businesses that have several computers would need to order and install one for each machine. This is because software licenses do not allow a program to be installed on multiple systems. Larger companies, because of their sheer size, would not be able to implement such a model, or it would be too costly. Hence volume licensing was introduced. With volume licensing, big companies strike a deal with software developers to have a few installer discs deployed to their IT staff. The companies then will only need a common license.

The coming of the Internet allowed several changes in how the software is delivered, though. For a time, it was used to simply download patches and provide updates to programs. When connection speed became faster, it became possible for entire programs to be directly downloaded to the user’s PC. Usually, this entails a small program to be installed first, which would then take care of the installation. This model is still popular today and is used by many applications from drivers, web browsers, to office productivity tools. Even operating systems can be downloaded online, though it would have to be burned to a disc before it can be installed to a PC. The licensing process was still the same, though there are a lot of programs now that can be installed on multiple systems with no problem.

It is the advent of large networks and the Internet that would make SAAS possible. Web development platforms like Ajax and Java allowed the creation of programs that can run simply on web browsers. The first few programs were very simple, but it became a proof of concept of the opportunity it allowed. Websites stopped becoming static and allowed users to do more. Today normal users and businesses are able to use common applications just by being online instead of having to launch a program natively on their computers. Software developers are slowly adopting SAAS because it gives them the flexibility to manage applications and deploy new tools easily.

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. Companies would not even know the difference between programs delivered through SAAS and those in traditional manner. The requirements will still be the same or even lower, with connection to the Internet 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 by the next time the program is opened. Pricing models also differ and are generally lower than current licensing costs.

It is also possible that home computing will experience more of the SAAS model. Photoshop Express and similar products will gain ground because they are currently free. However, it is possible that local users will be willing to accept a subscription service or a one-time fee, with the programs accessed through the web browser. Google Docs and ZOHO tools work in any browser and offer functionalities that even rival standard applications. There is even a plan by Microsoft to release an online version of their popular Office software. It is gaining acceptance to users because there is no need to take up space in the computer itself.

Surely, with all these developments, one thing is for certain: SAAS is definitely here to stay.

Information technology has been an integral part of the success of any business. The first major contributor was the birth of the personal computer. With it, companies all over the world were able to automate many tasks that would have taken days and huge personnel to accomplish. The things the first computer were able to do were simple, yet it was such an advanced step from journals, ledgers, and typewriters that it ensured its place in the office.

The abilities of the PC grew as it became more mature, and new software companies were able to cater to specific needs of certain businesses. Then the Internet blew into everybody’s consciousness, and with it, businesses scrambled out for ways to exploit its uses. The maturity of the Internet in these past years has also caused an evolution as to how businesses get specifics programs for their own productivity. This growing trend is called software as a service or simply SAAS. This development is becoming more significant that software giants are taking notice.

In the past, regular folks would purchase the software that they needed from computer shops or through the mail. The applications came in boxes with an installation disc and some instructional materials. The program must be installed in the PC before it can be used and can only be used on that PC only.

Small businesses would take the same route while large companies would only need a few installers to load software in multiple systems. This was through volume licensing since a single license will accommodate more than one computer. This system is still enjoying attention today, but a lot of companies needed more flexibility in the programs that they were getting.

This allowed software houses to create custom-made programs depending on the requirements of their clients or companies. Companies would still enter into volume licensing depending on how many terminals the custom application will be used.

The Role of Internet in the Development of SAAS

The Internet greatly influenced the events that would lead to the creation of SAAS. First, the Internet was used to allow certain applications to update themselves. There was an attempt to try a similar form of SAAS in the late nineties, but it did not take off due the need for faster networks that were not available that time.

When the bandwidth started to become large enough, the Internet was then used for delivery of the applications. Software developers usually achieve this by downloading a tool that would facilitate the installation of the program. Even popular software was also available for download. At the same time, the popularity of web platforms such as Java, Ajax, and PHP allowed software companies to offer small programs that can be run over the Internet through the web browser.

Why Its Fan Base Is Growing

Today software as a service is gaining acceptance because it allows users and companies to get the benefits of a full-blown application and the necessary support but without the large initial investment or the need for dedicated IT personnel. This is because most SAAS applications are operated from a central location and delivered through the Internet. There is no need for the program to be installed in each PC since it can run through the normal browsers. Even if there is a need to install something in the PC, the space needed would be miniscule compared to what traditional software would usually take up. 

The flexibility of web platforms also makes it customizable for the needs of a specific company. The need for patches can also be done away with because changes can be made on the fly and applied the next time the program is used.

Another reason why SAAS is becoming more and more popular is because of its alternative pricing structure. Applications deployed through SAAS are often priced for every user but are generally lower than the usual licensing fee. At the same time, the user can move from work computer to his home PC and still use the same program at no added cost.

This platform is not just gaining ground in large companies because there are already implementations that a normal user can have access to. 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.

The findings of a survey by document management software company, Version One, has revealed that 41% of senior IT professionals admit that they “don’t know” what cloud computing is. Version One carried out the research with 60 senior IT professionals (IT directors and managers) across a range of UK public and private sector organisations. This research follows-on from a similar survey carried-out by Version One which highlights that two-thirds of UK senior finance professionals (finance directors and managers) are confused about cloud computing.

Of the remaining 59% of IT professionals who profess to know what cloud computing is, 17% of these understand cloud computing to be internet-based computing while 11% believe it is a combination of internet-based computing, software as a service (SAAS), software on demand, an outsourced or managed service and a hosted software service. The remaining respondents understand cloud computing to be a mixture of the above.

Despite cloud computing being in the media spotlight, only a minority of respondents (5%) say that they use it “a lot” and less than a quarter of those surveyed (19%) reveal that they only use cloud computing sparingly. Almost half of respondents (47%) admit that their company doesn’t use cloud computing with the remaining 29% conceding that they “don’t know” whether their organisation uses it or not.

Julian Buck, General Manager of Version One (www.versionone.co.uk), says, “Although this is only a small survey of IT professionals, the results are nonetheless very alarming, especially as IT professionals are the very people that need to understand cloud computing so that they can explain its benefits to management.”

Buck continues, “It is clear from the survey results that there are a number of contrasting views as to what cloud computing really is, which is hardly surprising in light of the many different cloud computing definitions in the public arena. For instance, Wikipedia defines it as ‘Internet-based computing’ while Gartner refers to it ‘as a service’ using Internet technologies. IT expert, John Willis, writing in his cloud blog says that ‘virtualisation is the secret sauce of a cloud’ and provides different levels of cloud computing. With so many definitions circulating, clarity is urgently needed.”

Only 2% of respondents say that their company is “definitely” going to invest in cloud computing within the next twelve months whilst 30% state that their organisations “may” invest in this technology. 45% admit that they “don’t know” whether their organisations will be investing in it or not with the remaining 23% stating that they currently have no investment plans. For those who definitely or maybe have plans to invest in cloud computing, some of the key business drivers cited include reduction in overheads and paper, ease of use, cost savings and the ability to provide collaborative tools for teaching and learning.

Buck adds, “If organisations are going to embrace cloud computing in the future it’s essential that a single, simplified explanation is adopted by everyone. Failure to cut through the confusion could result in organisations rejecting this technology and missing out on the benefits it provides.”

Are you in business? Perhaps you are thinking of putting up your own? Either way, you have one very important concern: money.

No matter what type of business you are going to create—whether it is going to be brick and mortar or an online one—you need some form of capital. You need the money to buy the materials that you need to start off properly.

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. Simply put, rather than purchasing the very expensive software, all the clients need to do is to rent them.

Top Reasons of Using SaaS in Business

If you are dilly-dallying with the idea of using Saas for your business or not, perhaps the following reasons will make the decision so much easier:

1. You do not need to spend thousands of dollars for your programs. Instead of spending as much as 5,000 dollars for a single software that could be installed in only one computer, you will only have to pay for the monthly subscription for your SaaS. The cost may even just be around a couple of hundreds or even less. You also have the choice of whether to pay monthly, quarterly, or yearly.

2. You can change your software provider more conveniently. One of the foremost reasons why it becomes very hard for businesspersons to change applications immediately, especially if the ones they got are not the best ones for their enterprise, is because they have not really maximized their investments to such programs. When you are working with a software provider, on the other hand, you only have to use their applications on demand. When you are done with it, and you believe that there are better providers out there, you can opt not to renew your subscription.

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. Though some of them will give you free upgrades, most of them do not. This means that you can expect to pay hundreds of dollars every year for the renewal of your license or upgrade. You will not have to worry about this when you have a SaaS provider. Since they technically own the program, they will have to take care of the maintenance themselves.

4. You would not have to pay more for labor. Besides infrastructure and technology, you also have to allocate funds for your employees’ salary. Logically, the more people you have in your company, the more money you have to set aside for payroll. The SaaS model will prevent you from spending too much. You do not have to look for an IT professional and then pay for his or her salary and even for his training. When you need help in running the software, you can simply contact the technical support of the company. You can reach them via e-mail, telephone, and live chat.

5. All your data is kept safe and secure. Perhaps you are worried about your data. How safe are they when you know that you are technically not the owner of the applications? The answer is they are completely secure.

Part of the subscription plan is data backup and recovery. All your information are stored in different servers and in real time. This means that every time you save on something, another copy of it is already created somewhere else. Moreover, you are still given full control on what you do with the information that you inputted. What SaaS vendors would just do is 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 powerful, and yet there is no need or rush for you to spend a lot for them.

I recently received a report which included some interesting market data about about how the economy has impacted SaaS.  

At the end of 2008, a survey was conducted in order to gauge the impact of the economic crisis on buyers’ attitudes toward SaaS. In the aftermath of the financial meltdown, the survey data provided clear evidence that demand for cloud-based solutions continues to remain strong. Two survey questions in particular address how organizations consider SaaS in relation to key business goals and expected business value from those SaaS solutions. 

• In terms of business goals: “Sales/Revenue Growth” and “Reach New Customers” are the top two business goals across industry groups with “Increase Profit Margins”, “Managing Budgets” and “Decrease Operational Expenses” close behind in the top five. The biggest relative change came at the bottom of the list, with dramatic lowering of priorities as it concerns “Entering New Markets” and “Change the Organization’s Business Model.”  
• In terms of expected benefits: “Capital and Operating Cost Reduction” is the leading business benefit expected from SaaS as a whole, followed closely by “Simplify Software Management” and “Improve Service Levels.” The lowest-ranked expected benefits are “Access Next-generation Application Functionality” and “Leverage SaaS Provider’s Leading-edge Technology.”  

Is there a direct linkage between expected benefits from these solutions and the business goals that drive enterprises? The need for top-line growth drives the top two business goals across most industry groups with costs and profitability close behind. Yet, among expected SaaS benefits, increasing revenue falls well back into the lower half of favored responses.  

For more information please click on:  

http://www.researchandmarkets.com/product/720280/saas_in_the_postcrash_era_industry_data_ind  

Software as a Service, or SaaS, is quite simply an application that is run online.  It may have begun online, or was taken online.  Basically, SaaS enables a computer user to access an application without having to download and install it on his or her machine.

Los Angeles has been at the forefront of SaaS progress.  Los Angeles is in a prime position to capitalize on all great developments regarding SaaS.  For one, it has the required information technology infrastructure needed for operating a SaaS business.  It has a steady supply of information technology graduates who look for jobs within the area’s SaaS business that’s currently numbering in the hundreds.  It is no fluke that the world’s top grossing SaaS companies are either headquartered in and around Los Angeles: Oracle, Digital Insight, and the Trizetto Group.  Los Angeles is also home to a lot of successful SaaS startups. As a matter of fact, the 2008 list of fastest growing companies in Los Angeles had more than its share of SaaS companies.

The business environment in Los Angeles has also been more conducive to SaaS companies, with a number of venture capitalist firms in the area that guarantees initial funding to most startups, and continuing capital to a lot of existing information technology firms in the area.  The only question remaining is if the demand would match the potential.

The answer is a big and loud YES.

It is widely believed that the market for Software as a Service application matured in 2008, with more and more applications hitting the mainstream market. This was also the time when more and more enterprises and businesses were looking into a transfer to the SaaS platform.  Estimates have put the annual market for SaaS applications worldwide to be at $6.4 billion and that is set to double in just four years.  Recent studies have also shown that the migration—at least among larger companies—started at this high time.  Kelton Research reported in June 2008 that around 75% of executives from big companies said that their companies have already adopted SaaS applications or plans to adopt SaaS applications in the near future.

On a national scale, SaaS has been given a boost by the rise of collaborative technologies and interoperability.  The driving force behind both is the Internet, making SaaS a natural offshoot.  SaaS has also seen a rise in the number of adopting companies, propelled in part by the participation of big names in offline and online computing—Google, IBM, Microsoft, etc.—have offered SaaS services and platforms.

Additionally, most enterprises and businesses nowadays will find SaaS more attractive.  With the economy in a very dismal state, most companies will be balking at the upfront cost of buying, developing or maintaining software.  SaaS is a very prominent fixture in cloud computing where it is the vendor who shoulders the cost of developing and deploying any infrastructure—software, programs, servers, etc.—instead of the end user.  Further, the cost is not the only main reason why SaaS should be very popular in an economic recession, but also implementation and support issues.  Availing of software as a service platform can ensure that the end user will have only experts and professionals, who know the infrastructure inside-out (sometimes, even the same ones who developed it), do the implementation, deployment, customization, maintenance, even repair and troubleshooting of the same.  This not only takes away the headache of running the system, but also saves the end user in a myriad of costs, like hiring an expensive programmer, systems administrator, or other professionals to run the systems.  Many people have likened cloud computing and SaaS to the electricity you receive from your local electric company wherein you enjoy the benefits of having electricity without knowing how power turbines, hydroelectric generators, windmills work to produce electricity nor anything about how electricity is supplied and distributed.  All you need to know is how to pay for it, and the electric company will take care of everything.

All these are highlighted by the recent win of Barack Obama, who has vowed to limit offshore outsourcing to create jobs and bring jobs back home.  The limit would make SaaS even more attractive because it functions in a manner that is very like outsourcing.

It may take a while before SaaS applications overtake PCs and rob it of its status as the center of the computing universe, but indicators are pointing to that direction.  If not a full implementation of SaaS, companies are bound to look into this service to cut their costs and increase their efficiency.  With this uptake, Los Angeles is bound to become known as the SaaS capital of the country, if not the world.

As the cost of hosting hardware and connectivity goes down and web-based services such as Google Docs, Zoho, or Picnick became more available, the idea of using the Web as an alternative to desktop productivity became more popular. These developments in the past couple of years have made doing everything online and storing nearly everything online made web-based services more popular, such that when SaaS first came into view, it became relatively easy to sell it both as an idea and as a practice that is necessity to business operations.

Still, much of businesses that have sizable IT departments prefer to do it “old skul” and create things in-house and going so far as hiring consultants to develop applications both on-shore and offshore. What gives?

Read the full article here

Innovation in software is a key driver toward the onset of modern technology. In the same manner, the upsurge of Web-based services and technologies are a pivotal factor. As such, Software as a service or SaaS has effected a change in software technology for companies and organizations of varied sizes. SaaS has opened up opportunities for otherwise traditional business solutions. 

SaaS has made both small-scale trade organizations and large corporations recognize that there are other options to approach the software and technology aspect of their businesses.  As it gains the nod of most mainstream opinions, SaaS is taking an upsurge.  Software analyst Jeff Kaplan has pointed out how SaaS is widely accepted by most users and getting good reviews from the likes of famed Information Technology business guru Nicholas Carr to software application peers at the Wall Street.

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