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The growing reach and power of the internet has changed the way people do business, with more and more web-based services popping up. One of these is SaaS.
SaaS stands for Software as a Service, which refers to any licensed software being “rented” to a company by another company on an as-needed basis.
To illustrate, let’s say Company A is in need of licensed software, but only for a specific period of time because of a one-time client or project. Company B, as the SaaS provider, rents out the use of the software to Company A for the time Company A needs to use it – weekly, monthly, and so on. (Company B is specially licensed to do this, of course.)
The term became popular near the end of 2000, but the service started in 1998 with a website called siteeasy.com. The concept has become increasingly popular because the legal alternative to rent/outsource the use of the software spares the expense and hassle of procuring software licenses.
As with other outsourced services, the hardware used for SaaS are remotely located and hosted, and accessed through the internet by the subscriber. Virtually all kinds of software can be used through a SaaS service, and availability of the software depends on the subscriber.
There’s vast potential in the use of the internet and web-based services such as SaaS, but the nature of the remote hosting service is not for everyone. If you’d like to learn more about the pros and cons in relation to your business model, we’d be happy to discuss a possible SaaS road map with you.
Published on 22nd February 2010 by Jeanne DeWitt.