Atos Consulting Look Out | Software-as-a-Service (SaaS)

Concept

Software-as-a-Service (SaaS) is a model of software deployment where an application is hosted as a service and provided to customers across the Internet. By eliminating the need to install and run the application on the customer’s own computer, SaaS alleviates the customer’s burden of software maintenance, ongoing operation, and support. Conversely, customers relinquish control over software versions or changing requirements. Moreover, costs to use the service become a continuous expense, rather than a single expense at the time of purchase. Using SaaS can also conceivably reduce that up-front expense of software purchases, through less costly, on-demand pricing.
SaaS lets software vendors control and limit their usage, prohibits copies and distribution, and controls all derivative versions of their software. This centralized control often allows the vendor to establish an ongoing revenue stream. The SaaS software vendor may host the application on its own Web server, or this function may be handled by a third-party application service provider (ASP). This way, end users reduce their investment on server hardware too.

Trajectory

Start-up versions of SaaS will be created, such as Amazon’s and Google’s platforms.
SaaS versions of companies that own traditional software, such as Sage’s Online 50.
Vertical solutions for small and medium sized companies (PYMES) that will compete with traditional verticals solutions.
SaaS solutions that do not cover in-house software.
Big companies have been looking to raise in-house products to a higher level by moving into the cloud, as Microsoft has done with Microsoft Online Services, and companies such as Oracle and SAP have with their respective SaaS solutions.
SaaS is a paradigm-changing model for addressing business management. It is uniquely positioned to allow small- and mid-sized companies to access sophisticated, state-of-the-art technology. It is a well-suited, growing business because it provides the flexibility to support agile, rapidly-changing companies, while being scalable to accommodate rapid growth.
SaaS lowers cost of business solution ownership and provides predictability of costs over time. It provides more rapid time to production and value while avoiding the technology lock-in of licensed applications.
SaaS provides improved security, performance and availability with reliable access to data anywhere, anytime via an Internet browser. Companies report that the risk mitigation of reliable back-up and storage, coupled with audit trails, improves their support for compliance and better governance.
Because SaaS significantly reduces the cost of technology ownership, you can invest your capital elsewhere, allowing you to run your business, not your software.

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