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.
Industry analysts and strategists vouch that the SaaS is soon to tip the software application scale to its favor as the new age unfolds. Phil Wainewright and THINKStrategies tell it straight:
1. In an apparent struggle to keep operations afloat, industrial sectors necessitate a business solution to keep them on-track of the funds that go into IT. SaaS pay-as-you-go set-up translates to a low-risk trade, giving its vendors the competitive edge as budgets are trimmed. Goldman Sachs, for example, has pointed out that those new applications, which offer significantly lower costs of ownership, are attractive – just like SaaS.
2. Leveraging utility computing offered by SaaS answers the escalating frustrations of end-users on the costs and hassles of IT management. Storage servers and systems “virtualized” with speedier networks, fresh software systems for automated monitoring, provisioning, ticketing, billing or trouble-shooting makes IT management less of a headache for corporations. Additionally, through the virtualization technology, SaaS has become an easy way, especially on the part of independent software vendors.
3. Large corporations have leveraged the money being poured out for their workforce, and finding SaaS as a lucrative option to in-house IT management is a breather. Similarly, monitoring their own IT requirements and outsourcing only specific functions translate to savings in operational costs.
4. Service providers have recognized the importance of simple yet customizable packaging and pricing of their software products to readily address specific customer needs.
5. With the SaaS model, providers and vendors innovate quicker than others, as they need not attend to the older versions, but focus on newer versions. SaaS providers are mushrooming in the software industry.
6. SaaS introduced innovation in the delivery and sale approach by providers. Consultation-skilled sales and support staff replaces product-focused sales crew and maintenance-oriented people. In particular, SaaS vendors are obliged to make the entire system work through having the in-depth knowledge of the SaaS platform in terms of configuration, data and usage patters. Automatically, a fix is created and deployed to customers.
7. SaaS is reaping good reviews from the mainstream IT enterprise. Case studies have revealed that SaaS means reliability in IT solutions compounded with that revenue generating and cost saving approach.
8. End-users or customers figure out for themselves how to utilize the SaaS for business benefits. Dissimilar to older software application models, SaaS allows a customer to know the product in the context of a “real-world.”
9. Being a Web-based offering, SaaS removes the constraints in running the application. It becomes a more interactive way of managing business on the IT level. Essentially, a SaaS solution has a built-in monitoring system, which tracks errors and notifies vendors of errors, failure reports, and similar problems received by end-customers. In turn, SaaS vendors proactively fix these issues, as satisfaction, usage and adoption of users with respect to SaaS are the measures of profitability in their business.
10. SaaS platforms thrive, but are not stagnant. The more that SaaS penetrates the mainstream IT, the more that SaaS vendors will offer better and more effective platforms for corporations or enterprises that are interested to build SaaS.
In the overall, SaaS offers a beneficial element of ownership experience for customers, alongside offering the challenge for vendors to make SaaS work as an innovative, adaptive business solution. For these reasons, analysts see an imminent domination of SaaS in the new age of software application.
Ideyatech | 10-Dec-08 at 7:57 pm | Permalink
i have an article reagarding saas vs in house
http://www.ideyatech.com/2008/11/saas-vs-in-house-application-development/