about SaaS
Software as a Service (SaaS) is a method of providing applications hosted by a service provided to your customers typically via the Internet.
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Benefits to You |
Benefits to your Customer. |
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Protects your Intellectual Property, by not distributing software |
Vastly reduced setup costs – no servers required |
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Predictable Revenue Stream – not just a one off sale. |
No support responsibility as all maintenance, patches and upgrades are done at source |
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Central point of administration. |
Pay as you grow on a per user per month basis |
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You may be able to service multiple customers on one instance of your platform. |
Easy Access, typically presented via a web browser |
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Small upgrades as required. |
Removes the burden of expensive licences |
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Sensitive to the environment as fewer servers are required |
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Customer Benefits
Vastly reduced setup costs – As opposed to purchased software, SaaS is delivered to organizations as a subscription model, usually billed on a per user per month basis. This means that the costs are granular in nature and are incurred only as long as benefits are achieved. This does away with the enormously large upfront payments and massive annual license fees. It offers a simple “pay as you go pricing” model with no long term contractual requirements.
No Support Requirement – Since the application is hosted by the service provider, investing in expensive infrastructure is no longer required. All large initial investments on hardware, licenses, databases, ongoing overheads of employing and training IT staff, software and hardware maintenance and upgrades are managed by service provider. No local infrastructure meaning; no headache of upgrading aging technology, and a complete protection from unforeseen expense spikes.
Easy Access – Web based applications enable you to save your information on the Internet, hence making it easily accessible from anywhere. Your business knowledge is made accessible to all your knowledge workers increasing collaborative productivity. Geographically separated teams function better with better information availability.
Software as a Service provider benefits
Protects your Intellectual Property; your software now never has to leave your platform; this makes it quite hard for people to copy it and use it illegally.
Central point of administration – You no longer is you sending technicians to fix or customize your software because it doesn’t fit into a customer’s highly-specialized (or horribly outdated) infrastructure.
Predictable Revenue Stream - the subscription model associated with SaaS means that your customers will pay you on a recurring schedule. If you make this cycle flexible enough, you can get a real handle on forecasting revenues. The payment may be tied to your individual subscribers where some may pay monthly, some yearly, and some quarterly.
Smaller Upgrades Instead of large batched Patch Rollouts – Your development teams can focus on fixing core application functionality, tackling bugs and enhancing features in smaller incremental rollouts because it’s just easier to do so.
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