SaaS Introduction

SaaS is a business model whereby customers pay for a software application per usage rather that ownership. With the development of greater bandwidth companies are able to scale the business much more effectively but are also able to build highly efficient web-based applications.

The evolution of Software as a Service

SaaS has evolved from the ASP model which began to roll out in the 1990’s as a rapid internet development inspired the concept of application outsourcing.

The advancement of SOA (the technology behind ‘multi-tenant’ architecture) combined with increased bandwidth speeds has increase the development of hosted web-based applications which now come under the term SaaS.

SaaS has evolved as a cost effective and simplified solution delivering specialised applications through a secure internet connection.

Key drivers behind the SaaS model

The SaaS Model benefits from the trends for companies to focus on their own core competencies and outsource other task. Outsourcing has been a major business driver in recent years as companies seek to reduce costs and boost effectiveness.

The SaaS model takes it one step further as SaaS applications can be easily upgraded which is a significant advantage over traditional on-premise upgrades.