analayze and research 3 types of SAAS

Post date: December 20, 2015

SAAS: Software as a service

SAAS is a type of software that provides access to programs and data residing on the server. The customer doesn’t need to worry about installing and maintaining the software because it is provided remotely.

A true SaaS (Software-as-a-Service) company is one that offers subscriptions for use of their software over a network. The true SaaS model requires that the customer never take possession of the program itself, but rather access it over a network. It is similar to taking out a library card and borrowing printed books rather than purchasing books on your own.

Over the years, many companies have tried to claim that they provide true SaaS. However, all too often these companies try to charge customers for equipment and maintenance, which is an entirely different model.

While there is nothing wrong with charging for equipment and maintenance, it is not Software-as-a-Service. Rather, it is a custom software solution that is licensed for use on the customer’s premises or in their data center.

A true SaaS company charges customers only for the use of their software over the network. This way, customers can get started without any capital investment in equipment or maintenance contracts. Some SaaS providers charge usage fees monthly, while others charge usage fees annually or even pay-as-you-go. SaaS can be used for nearly any type of software application, including office productivity suites, customer relationship management (CRM), human resources management (HRM) and inventory management systems.

The benefits to using true SaaS include:

Easy installation and maintenance – The customer doesn’t need IT support because the provider handles installation and maintenance of the software. This also eliminates the customer’s need to purchase licenses for hardware and perhaps even upgrade their hardware as they grow in size as well as cost savings on maintenance outlays that would normally come with a traditional or custom software solution.

Pay-per-use – The customer only pays for access to the software as they use it over a network. This makes it easy for firms to scale up usage as needed rather than purchasing months or years worth of software upfront when they may not need the full capacity at that time. It also gives small businesses an affordable way to access enterprise level applications without having to buy them outright. Many small businesses are hesitant to buy various applications outright because they don’t want the expense if they aren’t sure how long they will need them or how much work they will actually do with them once they have them installed at their offices. So, SaaS can be an affordable way to try out new products without having to commit an entire investment into something before knowing whether it will work well for their business needs or not.

Multiple users – Some firms only need access to certain applications on a shared basis with multiple users accessing them at any given time in order to complete projects or tasks within their organization. When this is the case, SaaS can be an excellent way for these organizations to scale up specific applications as needed without having to pay full price premiums over obtaining additional licenses upfront where they may not need them right away but likely will do so down the road as their business grows and expands into new directions that require more applications and features than before.