The main traits of this new distribution model are:

 

  • The use of these applications is based on a comprehensive
    service contract that allows access to the management
    applications according to the companies’ needs at any given moment.

  • The service provider takes care of the infrastructure and application management.

  • Each company contracts the service according to the applications intended use.

  • It is all about a "one to many" model where clients share the infrastructure with others.

 

In comparison to traditional software licensing or purchase, SaaS clients enjoy the following benefits:

 

  • Financial advantages

    • Close to nil initial investment and maintenance expenses

    • No need for human resources to manage the hardware y software platform

    • Minimal user hardware requirements (you do not need expensive or new PCs)

    • Transform fixed costs in variable costs

  • Safety Increase

    • SaaS Systems normally offer increased safety standards due to the fact that this is a critical part of its distribution model

  • Access and use flexibility

    • The software may be accessed from any terminal and place with Internet connection

  • Continuous innovation

    • The software improves functionality constantly instead of in yearly cycles like traditional software

    • Users can easier assimilate functional improvements

    • There are no migration expenses due to continuous compatibility with previous versions

 

The Software as a Service model adoption is rapidly growing among all sector companies. According to IDC 2009 reports, the main global technology market intelligence provider, this model has already reached the critical mass to enter a major growth phase and generalised market acceptance.

More software at a lower cost.

Software as a service
(SaaS)

Software as a Service, SaaS, is a software distribution model by which a company offers its use to clients by means of a service contract. The company offering the service takes care that the software is always accessible so that the client is freed from maintenance, support and hardware.