Practical Aplications of SaaS

“Software as a Service” applications in the past were characterized by MSOffice tools, including document sharing and accounting sharing programs.  Today, SaaS applications feature an extensive range of enterprise tools which allow sharing, data capture and management.

 

As an ultimate giveaway, all that a SaaS end-user needs is a Web browser and an Internet connection, eliminating otherwise customary software installation processes, their associated fees and upkeeps. In the process, SaaS is much simpler, thereby minimizing an organization’s learning curve that is normally involved in highly complex programs.

 SaaS inhibitions, as well as adoption drivers cover four vertical market segments, namely education, government, healthcare and professional services. The SaaS model covers certain applications that are delivered in specific business-related functions, including Customer Relationship Management, Enterprise Resource Planning, Supply Chain Management, Human Resources, Web Collaboration and Salesforce automation.

 SaaS does not see “vendor lock-in” as a major concern. This is said to be partly attributed to the fragmented market that it thrives. Some SaaS vendors like SAP and NetSuite cover critical aspects of management, including human resources and financials, among others. However, these are scaled to several employees. Salesforce, Concur, Workday and SuccessFactors have implementations that are scaled to many employees for specific software applications.

 The Business Scenario

 A persistent issue clouding up the SaaS software and business model is whether it works better or worse than customary software that are premised upon legal licensing. As far as practical applications of SaaS are concerned, the answer greatly depends upon how the business adopts to the system. This means that as conventional metrics for non-SaaS software applications prove inadequate or ineffective in SaaS assessment, a mindset that embraces the innovative application is a requirement.

 Naturally, business organizations look for ease and convenience in integrating software applications with their existing systems. SaaS typically offers the non-customizable software type, but may be configured. However, this does not prove SaaS to be a poorer performer than licensed software. The fact is that both models carry different strengths.

 According to a research conducted by Information Week, about 471 business technology experts –  a few of whom adopt the SaaS model – agree that SaaS is reliable and offers ease of use and better upgradeability. Only some 32% of these respondents have found SaaS to be an affordable option. Still, a lesser number find that customizing, integrating and switching among vendors are probable problems with SaaS that they would rather not deal with.

 Vendors marketing hosted applications have proven that the Software as a Service system fits well in enterprise settings. SaaS vendors have to prove further, however, that SaaS can guarantee efficient performance and service delivery,

 To recall, small and medium-sized enterprises have accepted hosted applications before others did. The Sees were readily attracted to SaaS mainly as it allows quick deployment of new application. Absent high-end equipment for their Information Technology office departments, Sees are neither equipped to dish out capital, nor are able to tap the workforce required for the maintenance of IT infrastructure that complies with the standards imposed by information sharing. Moreover, SaaS does not call for hefty financial investment with respect to on-site hardware. SaaS further guarantees flexible policies of use and predictable pricing.

 Not long after, large companies followed suit. Various companies turned to hosted application models, including such as customer relationship management or CRM, content management, human resources, supply chain management and e-learning, among others. For one, IBM is adopting SaaS for specific customer service-related systems in the company.

 Experts predict that hosted service will be integral to corporate management, with its usage compounding at 7% annually through 2012. Software application professionals contend that SaaS has made its way to the business chasm and is gradually penetrating the mainstream.

 However, there is a need to accelerate SaaS for providers to keep customers satisfied. SaaS major selling points include application usability and functions; however, SaaS vendors should take into priority consideration secure and fast application access. This challenge has become increasingly difficult because of the escalating networks of users who adopt hosted applications.

 To keep up with this, SaaS players have been known to invest in tools to accelerate the delivery of Web applications. After all, only by accelerating their service can SaaS providers deliver fast and reliable response times of the application, paving the way for smooth, thriving operations.