SaaS stands for software as a service.
Software companies or service providers can offer application/software at their site, and you can "rent" the application on a monthly basis, typically by per user.
The data can be stored at the provider's site or your site, however, the software is managed and updated at the provider's site.
SaaS is not about having your application hosted offsite; it is not about pricing software differently.
It is about delivering software powered by services.
The services benefits are that you can implement a business application very quickly since the application is already in use.
Your initial costs are much lower; you do not have to invest in additional hardware and infrastructure.
Management and backup of data are the responsibility of your provider.
Manageability of peaks in business demand is easy since the provider can allocate additional resources very quickly.
The provider is also responsible for adding new features, upgrading the software and hardware, backing up your data and managing the infrastructure.
The disadvantages are that your service provider can go out of business.
Because the application resides at a remote site, the speed and performance are dependent on the Internet connection.
If you decide to change the application, migration to another system could be very difficult.
Not all business applications in your environment are available or are conducive for the SaaS model.
Companies have concerns about data security and operational risks, since a third party manages the infrastructure, software, and data.
Evaluating SaaS If you are interested in looking at SaaS for email or other applications, ask for a trial period.
Most companies offer a trial period so that you can evaluate their software.
While you are testing the features and functions, contact their support team.
Make sure that you are getting your questions answered properly and efficiently.
Bad support team can frustrate you and make you lose revenue; understand their support level agreement.
Ask about any additional costs you will incur if you migrate your existing data over to their application; find out what the process is for migrating your existing data.
Find out what guarantees are available for software fixes, infrastructure and hardware outages as well as migration of your data to another vendor's application.
(data return guarantee-if you want to move to another vendor) Make sure that you have a clear understanding of where your data is being stored and how to get it back when you need it.
Once you have a clear understanding of the pros and cons of SaaS, you can decide if this business model will work for your company.
Software companies or service providers can offer application/software at their site, and you can "rent" the application on a monthly basis, typically by per user.
The data can be stored at the provider's site or your site, however, the software is managed and updated at the provider's site.
SaaS is not about having your application hosted offsite; it is not about pricing software differently.
It is about delivering software powered by services.
The services benefits are that you can implement a business application very quickly since the application is already in use.
Your initial costs are much lower; you do not have to invest in additional hardware and infrastructure.
Management and backup of data are the responsibility of your provider.
Manageability of peaks in business demand is easy since the provider can allocate additional resources very quickly.
The provider is also responsible for adding new features, upgrading the software and hardware, backing up your data and managing the infrastructure.
The disadvantages are that your service provider can go out of business.
Because the application resides at a remote site, the speed and performance are dependent on the Internet connection.
If you decide to change the application, migration to another system could be very difficult.
Not all business applications in your environment are available or are conducive for the SaaS model.
Companies have concerns about data security and operational risks, since a third party manages the infrastructure, software, and data.
Evaluating SaaS If you are interested in looking at SaaS for email or other applications, ask for a trial period.
Most companies offer a trial period so that you can evaluate their software.
While you are testing the features and functions, contact their support team.
Make sure that you are getting your questions answered properly and efficiently.
Bad support team can frustrate you and make you lose revenue; understand their support level agreement.
Ask about any additional costs you will incur if you migrate your existing data over to their application; find out what the process is for migrating your existing data.
Find out what guarantees are available for software fixes, infrastructure and hardware outages as well as migration of your data to another vendor's application.
(data return guarantee-if you want to move to another vendor) Make sure that you have a clear understanding of where your data is being stored and how to get it back when you need it.
Once you have a clear understanding of the pros and cons of SaaS, you can decide if this business model will work for your company.
SHARE
