Software as a Service: A good deal!
By CXOtoday Staff
Aug 28, 2007

If you think business software is expensive and difficult to implement and use, think again! Several years back, we thought the same about owning and using a cell phone or a computer. Rules of the game are changing faster than we can imagine. Software as a Service or more popularly SaaS is one such disruptive technology that's a catalyst to these changing times and is definitely here to stay.

SaaS is a new model of how software is delivered and consumed. It refers to software that's accessed via a Web browser (over the Internet) and is paid on a subscription basis (monthly or yearly). Different from the traditional model where a user buys a license to software and assumes ownership for its maintenance and installation, SaaS presents significant advantages to the user.

Low Cost of Entry

SaaS is faster and a cost effective way to getting implemented. There are no hardware, implementation, acquisition, or training costs involved to run the application from the user's side. It's the responsibility of the SaaS vendor to manage and run the application with high security, performance, and reliability. Better yet, your company doesn't need to make a large capital investment and deal with the fact that the software didn't work for you. You try it and if it provides value to your business, then you subscribe to it.

Immediate Access

Say you're surfing the Web and come across an interesting application, which lets your team collaborate on projects and activities. It would take you less than 30 seconds to signup for an account and another 5-10 minutes to get used to the application as opposed to days where it would take time to contact the software vendor, and then wait for them to install the application on your servers and train your staff. Critical business information is at your team's fingertips anytime, anywhere.

No More Download, Installations, and Costly Upgrades

Unlike traditional software, where upgrades happen once a year or once in 6 months (with the vendor coming to your office with a CD), the SaaS vendor continuously pushes new updates and fixes to the application, which is immediately accessible by the user over the Internet. You get up one day and there it is - the feature you were looking for!

Better User Experience and Service

The name says it all - Software as a Service. Service is an integral part of any business and especially a SaaS company, since its delivering software on a subscription basis. The pressure is high for the SaaS vendor to innovate or risk losing subscribers to competition.

Platform Independence

Windows, Linux, or Mac users can use SaaS, providing true platform independence over the Internet. All you need is a browser (e. g., Microsoft Internet Explorer, or Mozilla Firefox) and a broadband Internet connection.

You're Using It, Look Closer

Though SaaS is a new term, its functions aren't new. We use consumer-oriented SaaS applications in our everyday life. From checking our emails - at Gmail, Yahoo, or Rediff - or connecting with our friends or business associates on FaceBook, Orkut or LinkedIn, to sharing photos and videos on Flickr or YouTube, we're using a service that someone else provides.

Indian businesses have realized that being on the Web and having a broadband connection is imperative in this day and age. With PC and laptop sales going up, increasing broadband penetration, and the need to be system-driven and agile, it's just a matter of time that Indian businesses will adopt the SaaS model within their organizations. According to Springboard Research, SaaS revenues in India will exceed from US $ 7 million in 2005 to US $ 48 million by 2008. It's not too far when all businesses will be comfortable renting out software from a SaaS vendor who can deliver value, reliability, and security all at a fraction of the cost.

By Sahil Parikh, founder and president of Synage Software