Some of us still remember having to load software onto our computers with numerous floppy disks, then hard disks, and eventually with CD-Roms.  This eventually came to be known as software as a product.  But that is all a thing of the past, thanks to service providers who have facilitated the distribution of software over the Internet.


We can now access all types of software quickly and efficiently with a simple download.  This software distribution model is referred to as Software as a Service (Saas).  Also referred to as software on-demand, the SaaS model has revolutionized the software industry and the way in which it delivers its products.  It actually allows vendors to release their products as a service.  The customer, or user, can utilize the software service by paying a subscription or paying per usage.

SaaS helps its customers by:

– simplifying the administration

– automating updates

– facilitating compatibility

– easing collaboration

– allowing global access

Given the ease with which software can now be accessed and utilized by the user, SaaS is becoming a common delivery model for a variety of business applications.  It allows the user organization to substantially reduce the costs associated with IT support since this is now outsourced to the SaaS provider as well as the maintenance of the hardware and software.  As a result, it is making a significant impact on business applications such as Human Resource Management (HRM), Customer Relationship Management (CRM), Management information Systems (MIS), Enterprise Resource Planning (ERP), accounting and invoicing.

While some may consider SaaS to be “simply: a trend, it is anticipated that it will remain the leading type of cloud investment for at least the next decade.

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