Monday, September 12, 2011


Software as a Service (SaaS) is the term coined in 2001 became popular in industry only during 2005. SaaS as a concept could be explained as below.

When business unit or client, for example “Tea Manufacturers Ltd” a tea powder manufacturing company wants to use a IT solution for handling the day to day Customers, Sales, Marketing, Production and Financial departments of their business, they would approach a software company, discuss their requirements and get a software developed. If another similar business model company says “Coffee Manufacturers Ltd” also wants similar software, then the Software Company can simple give the same code with little modification in titles.

Such kind of activates are desktop solutions, where the client need to do the follow:

  1. Select computer with decent configuration to be capable of running the designed software.
  2. Have as many of those selected PCs as required per employee strength.
  3. Get an IT administrator to maintain the security of the data in the company.
  4. Take risk for maintenance and protection of database that belongs to the said software.
  5. Wait for assistance from the software company in case of any bug or crash.
  6. Many more complications as versions in software increase.
  7. Software integration via various means of communication like mobile etc. is a cost born by one company alone.

In situations like the above, SaaS can be seen as GOD; SaaS is where the software company builds one solution like CRM with internet as medium and gives various user logins to the companies, the companies only need the following:

  1. A small configuration computer with basic internet access
  2. Many of such PCs for the employees.

And the rest of the earlier burdens are born by the software vendor only like:

  1. Vendor is responsible for data security
  2. Responsible for software uptime
  3. Responsible for speedy access or no delay from there end.
  4. Hefty infrastructure.

This is also a very good method to make revenue constant for a period rather than getting it for one sale.