Software-as-a-service (Saas) using Cloud computing technology is fast emerging framework that dramatically changes how people build and run business applications. It eliminates the costs and complexity of buying, configuring, and managing the hardware and software needed to build and deploy applications. Instead, these applications are delivered as a service over the Internet (the “cloud”).
Software-as-a-service or SaaS is a subscription based software usage offering which provides popular software applications for a usage fees instead of having to buy and install licenses. The usage of the system can be scaled up based on number of modules, features, and number of end users as going along. You only pay for what you use and have the flexibility of upscaling / downscaling at any time. Usually SaaS software subscriptions are provided on a monthly or yearly fee. This is very much like to utility services like electricity and telecom where you don't need to own any of the infrastructures, you just click on the switch and start using it, and you pay for only what you use.
This technology has following advantages -
Customer is allowed to access the application over internet. This model eliminates the need to invest in technology infrastructure like servers, hardwares etc. Clients just need to have internet connection and start using our applications over web.
Since the application is provided on subscription basis, client can utilize the application for as long as they want and can discontinue usage when they no longer need it. Just Pay only as you go!!
Free upgrades...As and when any product is getting upgraded with new features, it is upgraded at centrally hosted server. The upgraded software is automatically available to client for use. This eliminates investment required by client to install and upgrade software and hardware.
This model is highly successful in US and European countries. Few examples of successful running companies in Saas model is Salesforce.com, Oracle’s On Demand CRM (crmondemand.oracle.com) etc. Both of these organization provides On Demand CRM as Software as a service.
This technology is now getting popular in India as well. New companies are getting launched who are working on Saas model.
In India, SkyNet Solution ( www.skynetsolution.com ) has recently launched CRM (Customer Relationship Management) software under this model.
Challenges that SaaS model faces
Some organizations are hesitant to trust third parties to manage their applications and data.
At present, Saas Solution is available to some few selected vertical markets only. CRM is one of them where SaaS is highly successful. There are many other vertical markets for which SaaS solutions are not available at present.
If the Organization does not follow defined business process then SaaS may not work for them. These Organizations may need an on-premise solution.
Author is co-founder and CEO of SkyNet Solution having 15 years of extensive IT work experience in World's Premier Software Companies like Infosys, Wipro, British Telecom, etc.
Visit: www.skynetsolution.com
