Software as a Service follows the current trend of Cloud Computing. Initially mainly used forCRM (Customer Relationship Management) and payroll accounting is it now including more and more business applications. Its functionality is quite simple: the software is not installed on a local server, but runs on a virtual computing environment, accessible via internet. Invoicing takes place on-demand: the user pays only for quantity units he or she used.
SaaS bears significant advantages concerning cost-cutting and efficiency: a company does not need to purchase expensive business application licenses; it may use it via SaaS and thus uses only specific services in the quantity it needs. SaaS provides for flexibility and spares the company the purchase of over-engineered applications, thus avoiding a high fixed costs load.
Outsourcing of a company’s data bears high safety risks. Data may get lost or it may be misused by third parties, if sufficient data protection is not provided in the cloud. Companies put themselves in high dependency of the SaaS provider. It is necessary to prove very well which provider to choose.
Although the expected hype did not arrive, SaaS will establish itself in the IT business landscape, riding the wave of Cloud Computing. Its further development towards more individualized processes, however, will increase its complexity and might lead to new approaches.
— Michaela Kaiser 2011/04/19 19:29