What is the SaaS Business Model?
here’s a quick definition that keeps it simple.
Softare-as-a-Service, or SaaS, is a business model for delivering software applications through the internet and accessible through a web browser. Generally speaking, SaaS-model companies have the following characteristics:
- Access to the service is provided through a website. There is no software to install on your computer or local network.
- Users generally pay a periodic subscription fee rather than a large up-front license fee. Access to Services is available only while the User maintain the subscription.
- Fees increase as you consume more of the Service so most Services are affordable to most organizations.
- All Uses interact with the same version of the Service so Users always have access to all new versions and most new features.
- All hosting services, including data back-ups, hardware upgrades, and disaster recovery, are managed by the SaaS provider.
Why are Companies Adopting SaaS Solutions?
here is the most common reasons
The market for SaaS companies is growing three times faster than for on-premise software companies. Here’s a list of the most common reasons why:
- Fast and Easy – Users can start using SaaS solutions much faster and with much less effort than on-premise solutions.
- No Hardware – Since there is nothing to install, there is no need for new hardware or the other software licenses that are also usually required.
- Mobility – Everyone is far more mobile than we used to be, so Users can be productive using a web-based application anywhere there is an internet connection.
- Bypass Internal IT – Since nothing is changing on the local network, it isn’t necessary to involve the IT staff, who, regrettably, often slow down most technology-related implementations.
- Try Before You Buy – Business end-users can make decisions to test-drive new services with lower financial risk
Filed under: SaaS
