What is SaaS?

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Posted Jul 8, 2009 10:26:44 AM by DecisionPoint Team & filed under

Software as a Service (SaaS, typically pronounced ‘sass’) is also known as Software On-Demand. SaaS is a low-cost, subscription-based way for businesses to obtain rights to use software. SaaS software vendors typically host the application on their own servers.

SaaS isn’t for everyone, but for many customers it’s an attractive alternative to Enterprise software. Gartner forecasts the SaaS Provider Market will grow to $10B by 2010 and that more than 30% of software expenditures will be for SaaS offerings.

Some of the benefits are:

  • Because it is subscription-based, up-front capital expenditures are minimal and typically only a 1-year subscription commitment is required.
  • Subscription expense is often a fraction of the cost of additional IT person, hardware and software, and paying for professional services and support.
  • Solution provides a worry-free, complete end-to-end solution.
  • Rapid implementation. A configured mobile application can deployed in days rather than weeks or months.
  • No additional cost for software support or software upgrades. New functionality can be added at minimal cost.
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