When software applications are offered as a service over the Internet, this sale and licensing model is known as SAAS. Here, the abbreviation stands for the term Software-as-a-Service.
The use of SAAS is usually made possible on the basis of a subscription. For this reason, the model is perfectly suited to implementing software programs that are used for business purposes, such as those for customer relationship management, e-mail, or instant messaging, in the form of SAAS.
How SAAS works
Hardware and software programs no longer need to be installed, maintained and updated internally within the company with SAAS. The applications can be used immediately. SAAS services are characterized by typical features.
All users and applications use the same infrastructure, which is centrally managed, as part of a multi-tenancy. The SAAS can be accessed via any Internet-enabled device. This means that all information and data can be accessed at any time and from any location, and can also be synchronized very easily.
Most SAAS rely on web interfaces that are already familiar to users, as they resemble the structure of typical websites. This significantly accelerates the acceptance of the SAAS within the company. The integrated collaboration and networking features also greatly promote cross-site teamwork.
These companies benefit from SAAS
In general, SAAS models are suitable for any company, regardless of its size. Thus, both global corporations and small start-ups benefit greatly from the flexible cloud solution.
In the days when traditional client-server software packages were primarily used, new technological trends were usually accompanied by extensive investments, giving large companies an advantage. They could entrust their own IT experts with the execution, maintenance and compliance with security precautions. Few small businesses could afford such investments.
However, the playing field for small businesses has changed dramatically with SAAS solutions. The need for day-to-day infrastructure becomes a fixed operating expense and can be scaled flexibly – down or up, depending on current developments – without effort. This means that even small companies can benefit from technological innovations that they simply could not afford in earlier times. The main advantages are minimal investment, the ability to work on the move, and the rapid configuration of SAAS.
However, SAAS has also proven to be an extremely practical approach for very large companies. By providing the necessary functions on a shared platform, there are unbeatable advantages in terms of increased speed, efficiency, scalability and the immense potential for cost savings.
Often, large enterprises are composed of disparate business units spread across different offices, time zones and countries. Cloud solutions provide the tools needed to enable extensive networked collaboration in a cost-effective manner, despite the significant challenges.
With the right configurations, it is even possible to integrate legacy systems and thus link all enterprise services together. This means that incomplete data and reports can be eliminated in the future – an effect that is automatically reinforced in a positive way. In addition, internal social media can be synchronized on all user devices, making collaboration between individual teams extremely successful.