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Software as a Service

( SaaS )
SaaS stands for Software as a Service.

  1. It is confusing. What is it actually?
    • Let me put this is simple way. We all use softwares. Some comes bundled with our laptops or desktops. Others we install it. Some are free, some are not. Now the most software business model is well known older one. You pay and get software.

      I hope you got above point.

      Now Let`s us take example. We all know about anti-virus software. We purchase it and use it. After some time, may be a year or so, licence of antivirus expires and we buy it again, if we need it. Now assume this. You don’t have to buy anti-virus at all. All you need to do is open a web site, ask online anti-virus to scan your computer, pay for one scan and get all the virus removed!!!

  2. Is it cheaper?
    • Now let`s calculate costing. Let say we buy anti-virus for us in ₹ 1000 (roughly 17 USD). We use it for a year and then licence expires. In other case let say one simple scan in SaaS model costs ₹30 (roughly 0.5 USD), they you got 30+ scans in ₹ 1000.

  3. That was hypothetical. Things do not work in hypothetical manner. Get real.
    • Let`s take real world example of Microsoft office. Microsoft office comes in two flavours. One is stand alone, which is mostly used by you, which sets itself into your computer, you open it via double clicking on short cut. The other is Office 365, which is SaaS. Here you open your favourite browser, log into your account and entire office can be operated from the browser. Let`s compare rates.

      Office 365 home premium costs ₹ 3749 in India. Office 2013 home and students costs ₹ 4980 in India.

      In office 2013 you get DVD of a product which can be activated in one single PC or laptop.

      While in office 365 you get,
      • Everything online, entire Microsoft office
      • Licence for a year for 5 pcs
      • Everything updated to latest version
      • Skydrive storage
      This just example. Check official microsoft site for more details. I am just proving my point how SaaS is important.

  4. OKAY, but why SaaS is cheaper and so favourable? What was wrong in older model?
      • SaaS is faster and a cost effective way to getting implemented. There are no hardware, implementation or acquisition costs involved to run the application from the customer's side.
      • It's the responsibility of the SaaS vendor (us) to manage and run the application with utmost security, performance and reliability. Since customers pay a subscription, they have immediate access to the new features and functionality.
      • Unlike traditional softwares where upgrades would happen once a year or once in 6 months (with the vendor coming to your office with a CD), the SaaS vendor continuously pushes new updates, fixes to the application, which is immediately accessible by the customer. This reduces the length of time it takes a customer to recognize value from the software.

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