SaaS applications, or software as a service, refer to a computer program that is run off of a server accessed by an Internet web browser. The information within a SaaS application is stored via cloud computing, which is simply the method of using multiple servers to run a website.
Businesses often use SaaS applications because doing so will help them save money while simultaneously increasing productivity. Some of the benefits of hosting SaaS applications include the ability to earn more revenue from each customer and the attraction of new customers who are looking for a software application but do not have the budget or resources to pay for it. According to Salesforce.com, a business using these applications may earn up to 50 times more revenue than they would have otherwise. A SaaS application does not have to be purchased and instead requires businesses to subscribe to the service. This saves money because there are no licensing fees involved since the software is not being purchased. Not having to purchase software also means less IT costs because it is not necessary to purchase equipment to run the application, nor pay employees to manage it. Implementing a SaaS application can give smaller businesses a chance to use software they may benefit greatly from, but could not afford to purchase.
Many times, Independent Software Vendors (ISV) have a hard time selling to both small and medium sized businesses. Using SaaS, Independent Software Vendors are more often able to produce and market their software to these businesses because of the benefits of using SaaS applications. ISVs help cut down on costs because software is run in a controlled environment, eliminating the need for a help desk providing phone support to customers. When a new version of an application is released, updating the application becomes a lot easier for businesses. Another benefit to using a SaaS application is that the monthly payments are a set price, making it a more financially stable choice for the business using it.
Businesses' clients can benefit from these applications in several ways. Clients can access the application with nothing more than an Internet connection and a web browser and applications are automatically updated. All of the information needed to run the application is stored in one central, secured information center rather than deployed over multiple computers and servers. The business itself does not have to maintain the application, making use of the application that much more efficient.
For these reasons, many businesses can greatly benefit from the use of SaaS.
Julie Wein - I am an aspiring writer/journalist with a Bachelors Degree in Mass Communications from Towson University in Towson, Maryland. My dream is ...
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