Software as a Service (SaaS) is a software delivery mechanism or distribution model in which the a vendor or service provider host the applications and make it available to customers over a network, usually the Internet. This way, the software and its functions become a web-based service that can be accessed remotely.
SaaS will allow your organizations to access business functionality at a cost which is bound to be lower than paying for licensed applications since SaaS is based on a monthly fee. Also, because the software is hosted remotely, you won’t need to invest in additional hardware, thus removing the need for you to handle the installation, set-up and maintenance.
SaaS can transform the way your information technology (IT) department relates to and even thinks about their role as providers of computing services to the rest of your enterprise. The advent of SaaS as an effective software-delivery mechanism have created an opportunity for IT departments to change their focus from installing and supporting applications to just managing the services provide by these applications. A successful service-centric IT produces more value for the business by providing services from both internal and external sources and aligning these services closely with business goals.
At RnR, we have been using web hosting technology to deliver RujulERP to our clients. However, the emergence of SaaS, enabled by Cloud, has created a buzz in the market. The benefits of this approach to software deployment are abundant and compelling, especially for SMBs. The ability to have access to powerful technologies, with a nominal financial obligation has opened new vistas of productivity and competition to SMBs. It is for this reason that both the international as well as the domestic market is ready to experience SaaS.
SaaS pricing models are available as
- Subscription based
- Usage based
- Transaction based
- Value based (shared risk/revenue based)
- Fixed-Fee model