SaaS (Software as a Service) Business Model

Just remember our old days. Days before the era of Cloud computing, the company needed to buys its own systems, storage and networking system and install necessary software. And everything like sharing, tracking payments, archiving are done. It was too much tedious and costly for the company even difficult to run the company to buy infrastructure and hire engineers to work and provide services.

Early in 1961 John McCarthy had claimed that “Computation may someday organized as a public utility”.

At that time it was sounded ludicrous.

After the digital revolution internet have reached everywhere & every devices.

Today SaaS Applications have been all around us. We have Google Apps for productivity tools,We have Microsoft Office 365 for amazing our daily works and stuffs. Similarly, Amazon Web ServicesDropboxSlack and so on which have become part of our life and supports productivity to our work.

Software as a service(SaaS) refers as a software licensing and delivery model(a business model) in which software is licensed on a subscription basis and hosted centrally. We can say SaaS applications as “on-demand software” or “software pus service”. SaaS applications are Web-based software. They are considered as part of cloud computing plus with Infrastructure as a service(IaaS)Platform as a service(PaaS)Desktop as a service(SaaS).

SaasS Application have broaden its market all over the work expecting that business to become more reliant and company got more business advantages.

Even fifteen years ago, this term was not in common use — but Google Trends data highlights the consistent increase in popularity of users searching for information on SaaS worldwide:

How does SaaS Differs from traditional Installation?

While using SaaS applications you don’t need to install applications in your data center. You don’t need specific files, folder, codes on your own computer. All the data is stored in the cloud.You can access SaaS applications from any Internet-enabled device(that can be you PC, Laptop, Phones,tablets) and location.Since, SaaS Application are installed in your web-server.

There is payment for the access of SaaS. As many of SaaS Applications are free whereas many of applications can be accessed on subscription basis according to the plan of Application Provider.

Pros of SaaS:

There can be always pros and cons of any business model. SaaS is not for everyone but these positives speak to a large population of entrepreneurs.

Some of the advantages of SaaS are as follows:

Short-Term Cost Savings

Avoiding the initial expenses of tackling a software infrastructure is a game changer and is something the modern internet has recently made possible.

An IT infrastructure is expensive and the ability to avoid those initial fees is the most attractive aspect of the SaaS business model.

Scalability

If a SaaS business gains initial traction, server space is not an issue. In traditional software companies there would need to be a plan in place to increase server capacity.

A lot of successful software companies experience a brief crisis to build it out. In the SaaS business model, the only hurdle is upgrading the hosting service.

Conclusion:

We found that there are multiple benefits of SaaS Applications due to its flexibility and scalability. No doubt it reduces IT troubles, infrastructure costs, manpower, and also centralized organised data center have been boon for data security and reliability. So, Service provider application should go on SaaS business model which would be beneficial for both vendors as well as subscribers.

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