SaaS Development

Software as a Service or “SaaS” is an innovative software model that revolutionized the way in which software applications are consumed are delivered. Specifically, SaaS, also called “software on demand”, is accessed through a subscription. It operates through a web browser.

 SaaS does away with conventional software application models, which, among other things, essentially attaches a customer to valid licensing. SaaS, or the Phase Two Model, is different from the traditional model because it takes the responsibility off a customer with respect to the implementation and management of the software.

 

Customer and Vendor Perspectives

 From a customer’s perspective, there is a new way to consume software other than owning it directly. While direct ownership of software is a costly investment that entails expensive maintenance and has high risks of depreciation, the SaaS model allows software usage through rent. Fundamentally, SaaS provides customers instant access to its functionality and related features.

 SaaS saves on costs and resources relating to hardware, software updates and actual purchase, support personnel, power, devices for both remote access and security, and general administration.

 SaaS reduces the otherwise high costs that come with acquisition of hardware, as well as other infrastructure and several requirements for the application to successfully run. Additionally, the SaaS model also minimizes upfront and instant costs because it is acquired as a paid application. Moreover, returns on investment may be expected earlier than they are realized with the traditional software model.

 As an ultimate characteristic, SaaS offers a new way to own and acquire software. It creates a dramatic transition of accountability in terms of application management or deployment. The software vendor bears the responsibility for the application, allowing SaaS customers to focus on doing what will improve the application of the software. Customers can take into account of security, performance and stability, instead of bearing the perpetually licensed ownership. This set-up also allows vendors to be responsive to software value.

 SaaS also offers mobility of use for on-the-go situations, such as in various office locations or at home. In any of the locations where there is Internet connection, users gain access to the same pertinent data, documents or tools.

 In other words, the deployment of the application equates to delivery of service. As such, customer experience takes center stage as far as software companies are concerned. This process gauges whether a company is gaining or risking loss of business. Through the pay-as-you-go SaaS, software vendors undergo monthly evaluation, and works on business solutions to ultimately meet the requirement to improve the application.

 According to various software reviews, most customers find SaaS as a cost-effective software model. SaaS also assures its customers lucrative software consumption. It avoids customary cycles of development that demands high use of resources. Absent these development cycles that run on a considerable amount of time to yield results.  SaaS guarantees its customers non-mediocre outputs.

 SaaS is also notable for its inherent flexibility. It allows customers to select which applications they still need, and which have become outdated and due for necessary elimination. This is called for, given the constantly evolving technologies. It resolves software companies’ dilemma of seeking software solutions amid inability to meet modern application requirements. In this sense, SaaS is said to be the more convenient, faster and money-spinning way to consume software.

 Conversely, the SaaS software model offers significant gains to vendor companies. For one, it means better sales, enhanced competitive differentiation and fresh ways to generating revenue. In the process, SaaS causes better vendor-customer relationship.

 The SaaS model is an option for large software companies. Hence, business firms dramatically make their way by downmarket. It offers the new choice to what was otherwise less affordable to small or medium sized entrepreneurs, due to financially demanding licenses that needed to be acquired for perpetual ownership. SaaS allows smaller companies to compete evenly with the larger companies. In addition, SaaS rids vendors of quarter-end discounting protocols and enables them to predict, or better yet, expect revenue that recurs periodically.

 According to SaaS survey authority Ray Wang, SaaS works best for software companies that employ a workforce of between 100 and 499 people. It also best for software vendors that have around 50 to 100 users, Mr. Wang adds, citing the results of a SaaS survey conducted by Forrester Research in 2006.