Already on ArticleSlash?

Forgot your password? Sign Up

Software as a Service in Business

 


Visitors: 289

Software-as-a-Service, or SaaS, is a term frequently used but what does it mean for businesses and what are the financial implications resulting from utilising this software? SaaS is a software which is deployed over the internet and can be run behind a firewall on either a local area network (LAN) or personal computer. The software is licensed and a provider will offer an application to customers. This can be provided in two ways:

  1. Firstly, as a service on demand where a subscription is paid using a ‘pay-as-you-go’ format.

  1. Secondly, as a free of charge service. This may be offered to users where the providers believe they can generate revenue from supplementary services such as user list sales or advertising.

Short Term and Long Term Benefits of SaaS

The early concept was that SaaS offered primarily short term benefits. SaaS could:

  • Fill temporary IT gaps whilst bigger projects were developed both internally and externally.

  • SaaS could offer companies the opportunity to continue working but without having to carry out large administrative tasks such as due diligence. (For example, if new systems were to be introduced, then checks needed to be carried out on existing hardware and what could be altered/introduced to improve efficency, potential solutions needed to be analysed, cost implications of introducing different systems needed to be assessed, associated hardware and labour costs needed to be calculated. These could all be time consuming and costly. )

  • Consequently, by introducing SaaS, IT costs and overheard for companies were significantly reduced. There were no associated hardware costs, maintenance costs or employment costs. The main outlay was paying for the actual software and its usage.

As the popularity of SaaS has increased, so too has understanding of the longer term benefits associated with it and companies now view the SaaS model as a positive, longer term investment.

SaaS’ short term benefits now extend into longer term ROI. For example:

  • Quick adoption and faster route to market means companies can have minimal interruption to their working practices and gain early competitive advantage.

  • SaaS systems also exhibit more convenient and flexible scalability and the providers often offer reduced licensing fees as the number of users’ increases. This is turn can have a knock-on effect with reduced training and support costs. Incremental increases in capacity are much smoother than the in-house-option, also minimising funding requirements.

Investing in SaaS offers easier administration and significantly reduced on-site costs; existing maintenance costs can be eliminated as no server installation is required and staff do not need to be on hand to provide help and server support. As a result, these staff members can be transferred to higher value and/or more proactive roles.

Companies are increasingly aware of the impact they have on the environment and reducing their carbon footprint plays a major part in this. SaaS can help significantly reduce a company's carbon footprint in a number of ways.

Waer Systems offer SaaS and software as a service . Waer Systems also offer the leading supply chain management solution .

(585)

Article Source:


 
Rate this Article: 
 
Is Automation Good For Your Small Service Business Or Bad For Your Small ..
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

Make Your Business Efficient And More Organized With E-Works Field Service ..

by: Muzzammil Haroon (March 06, 2015) 
(Computers and Technology/Software)

Who is Using Software as a Service? A Software Vendors Report From the Trenches

by: Frank Podlaha (July 10, 2008) 
(Computers and Technology/Software)

Software As a Service (SaaS) Software on Demand - Using SaaS the Smart Way

by: Michael G Perry (September 19, 2008) 
(Computers and Technology/Software)

MLM Software is Available at Your Service!

by: Derry Lee (February 14, 2013) 
(Business/Marketing)

CRM on Demand Software As a Service

by: Rama Krishna (July 13, 2008) 
(Computers and Technology/Software)

Software as a Service (Saas)

by: Ganesh Raj (July 04, 2011) 
(Computers and Technology/Software)

Software Development Business Brisbane - custom made software solutions

by: Bennie Jarvis (October 06, 2010) 
(Gaming/Online Gaming)

SaaS (Software as a Service) - A brief introduction

by: Remy Na (April 24, 2008) 
(Computers and Technology/Software)

Software As a Service is the Smart, Economical Way to Go

by: Alice Lane (September 28, 2008) 
(Computers and Technology/Software)

Is Automation Good For Your Small Service Business Or Bad For Your Small ..

by: Gregory Burrus (September 20, 2008) 
(Business/Solo Professionals)