The first time I learned the term SaaS was when I attended a service science seminar in the Raddison Hotel in Taipei. SaaS stands for Software as a Service. SaaS is a model of software deployment whereby a provider licenses an application to customers for use as a service on demand.
Sounds complicated? You shouldn’t feel this way; if you have a gmail account than you are already the benefactor of SaaS. Gmail is basically an email service (an application) that you subscribe through your internet browser. There is no software to install or program to update even though Google upgrades its software almost once every quarter.
The advantages of SaaS are tremendous:
1. There is no upfront cost to buy the application software, which could run up to thousands of dollars.
2. You pay a monthly fee, kind of like paying for your phone bill
3. Application can be accessed anywhere and anytime as long as you can log on to the Internet.
4. Data is securely saved in a professional data center, backed up daily in several locations
5. Software upgrade is completely transparent
Salesforce.com, one of the pioneers in the adaptation of SaaS made millions with its CRM systems. Smaller company like Armorize Technologies is able to sustain its revenue growth without the aid of venture capitalists or banks. Could this be the next disruptive technology in software evolution? Would Microsoft follow Google’s footstep by launching its Microsoft Office in SaaS format? Let’s us just wait and see.
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2 comments:
I agree with you that we will most certainly see more and more SaaS format solutions in the near future. Especially now when the smart phones like the iphone are becoming more and more widespread. In the near future the 4G cellular wireless standard will also be launched which offer a maximum data transfer rate at 100 Mbit/s. With this technical framework in place, which provides fast internet access wherever you are, i believe we will see a rapid development of SaaS.
The first time I heard about SaaS was in your marketing management course, even though I've been using services like these for a long time.
Like Pär wrote above I also think there will be a rapid growth of SaaS. To sustain this growth the companies offering SaaS must keep to continually upgrade the products so it's worth for customers to subscribe for the product instead of buying a traditionally packaged software.
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