Evolving Technology

For decades companies ran software applications on their own infrastructure; paying for and managing everything that was involved; buying the hardware/software, installation, application development, security, maintenance, and upgrades. Software as a Service (SaaS) is a new delivery model where companies pay not for owning the software but for using it. SaaS as a concept isn't new. In fact, many consider the Application Service Provider (ASP) model to be the predecessor to SaaS.

Going back in time, we first witnessed the Internet Service Providers (ISPs). ISPs provided access to the Internet and related services like email hosting, web hosting, and DNS hosting. These morphed into Application ASPs, who provided dynamic content that end-users wanted. Companies like Amazon, Yahoo, Google, Monster, and thousands of others built elaborate web sites that provided an interactive experience customized to the user's need. As this field matured, the ASP business model stretched into something often known as SaaS.

What is SaaS?
 
The concept of paying for services isn't new. Take the example of electricity. Most firms don't own generators; they buy electricity from a power grid. The philosophy behind SaaS is similar, and rests upon the concept of selling an application as a set of services or capabilities as opposed to selling the software itself. End users now need not bother about installation, integration, and operation services. The application is hosted, typically, by a service provider who owns the underlying physical, technical, and human resource infrastructure who runs and supports the application. The services are accessible by the end-users on a 24/7 basis. Whether the service is on a dedicated or shared platform, the goal is to shift responsibility for delivery of the software's functionality to a service provider rather than it residing within the end-user's organization.

The SaaS provider is responsible not only for the performance of the software but also for the maintenance and upgrade of the software as well. The SaaS model involves hosted software based on a single set of common code and data definitions that are consumed in a one-to-many model by all contracted consumers, at any time, on a pay-for-use basis, or as a subscription.


Who can use SaaS?

The companies best suited for the SaaS model are SMBs; however, even larger enterprises see the value of utilizing SaaS for those applications that are used within certain departments or lines of business because they save the need for a ‘'global'’ IT deployment of an application that isn't used by everyone. By using outsourced SaaS services, companies can procure a best-in-class computing environment that is more efficient and less expensive than creating one on their own. This allows organizations to focus on the real technology and business issues that drive the success of their companies.

“My ERP system needs to go SaaS. How do we get started?”

About Servora
Servora uses cloud computing technology to deliver CRM, ERP, Accounting, and Ecommerce applications via SaaS to small and mid-sized businesses.  See a list of solutions that Servora offers.