SaaS

SaaS (Software as a Service) is an application hosted on a remote server and accessed via the Internet.

A simple and concrete example of SaaS are “free” e-mail (also known as web-based e-mail) systems offered on the Internet such as Microsoft Hotmail, G-Mail and Yahoo Mail. Each program meets the basic criteria of a SaaS application: a vendor (Microsoft, Google or Yahoo), contains all the programs, logic and data in a central location and provides access to end users of these data and the software runs and used during the world-wide web.

This “simple” application architecture can be applied to a wide range of software applications for use by companies or firms or individual users.

Two main categories of SaaS

SaaS is often divided into two main categories:

• The so-called “line of business services” which refers to business solutions offered to enterprises and businesses, and sold or made available to these companies on the basis of a subscription. Applications in this category include business processes such as supply chain management programs, applications, customer relationship and other
• Customer-oriented services that are offered to the public in general or on a subscription basis or (more often than not) offered for free but are supported by advertising. Web-based e-mail, such as those mentioned above fall into this general category.

Software Ownership

Traditionally, the user purchases a software package and license by paying a one time fee. The software becomes the property of the person who made the purchase. The software support and updates are provided by the seller or developer under the terms of the license agreement.

SaaS, on the other hand, did not have licenses. Rather than a single price, the payment for the use of software is by subscription. You access and use the software ends when you stop paying the subscription fees. In addition, the software is downloaded to your computer. In this example we used, G-Mail or Hotmail, it is not “resident” on your computer – to access and use over the Internet, but it is uploaded and stored on computer.

The main advantages for the user

• Lower costs. You should not pay a single (usually large) fee for licensing. He just needs to pay recurring subscription fees. An article about how you save money on SaaS implementation.
• Smaller storage requirements. You do not need to store the software or data stored on your computer so you do not need large data storage facilities. There is also the convenience of not having to constantly details backup – storage is the responsibility of the SaaS provider.
• Fewer staff. SaaS reduces the need for specially trained IT staff to manage the maintenance, monitoring and software updates. The SaaS vendor will provide a dedicated team to handle these tasks.

The main advantages for the seller

The main advantage for the vendor is in continuous stream of income that will amount to much more than can be expected in the traditional setup software licenses. Using SaaS also suppliers to mitigate piracy and without the use of software and reduce the losses associated with these  activitie

One example of SaaS in market today is Sales Tracking Portal. Sales Tracking Portal is an Online Sales Tracking Software helping sales professional to track and manage their sales operations. The strong point of this service is their simplicity and affordable. The features is much enough to support most of sales operation while very cost effective.

Article Source: SaaS