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Software as a Service sample essay

Software as a Service or SaaS is a model of application vending or application delivery wherein a software developer/vendor creates web-based application software. After that, he then offers it to users, usually other companies requiring that software, where the software vendor hosts and operates the applications over the Internet. In other words, the costumers don’t pay for actually owning the software, but of using it instead, so the software vendors are actually the service providers.

The SaaS concept is more connected to business software vending which offers to lower the cost of obtaining benefits from commercially licensed and internally operated software. This also removes the complexity of maintaining it and the high initial cost of procuring the software. The trend in businesses today is that they adopt the SaaS philosophies, wherein they don’t have to acquire the software physically, lest have to maintain it themselves; instead they resort to SaaS software vendors and avail of their services.

This is because of the abundance of existing software which is suited to the SaaS model which is needed by a number of companies for computing purposes. Obtaining this software physically would also mean that the companies would allot a specialist to maintain it and ensure good working conditions and problem troubleshooting. The applications that have high company SaaS demand are Costumer Relations Management, Video Conferencing, Human Resources, Accounting, and Email hosting.

SaaS-modeled software are different from other over-the-Internet delivery applications because SaaS solutions are made to have a leverage in web technologies, since they are made as web-based applications specifically. Advantages Adopting the Software as a Service model leaves the business managers and company owners in the receiving end. There are a lot of advantages that can be achieved with this SaaS. The first and possibly the biggest factor that entices companies to adopt SaaS is lowering of the upfront costs.

This is through saving the possible expenses that the company would need for the office/work-based equipment, installation and maintenance services. Instead of spending for these, they would just need to pay for the services of the software developer or provider. Owning office/work-based software would require licensing especially for the newly released ones. With SaaS, the business manager avoids having to pay these licenses, since they are just “leasing” the software from the actual owners, which are the SaaS providers.

Another advantage of this SaaS system will be the reduced ongoing costs for the business. This is because of the SaaS providers are also the ones who will be responsible for the maintenance of the system. This includes upgrades on the system and the software itself, replacement of equipment and troubleshooting, if necessary. In addition to that, the company wouldn’t require much of an Information Technology department, since the burden of maintaining and troubleshooting will be on the shoulders of the SaaS providers themselves.

Having a SaaS system would also mean a faster time for the company to market, since they won’t have to suffer setting up an office/work based utility with owning software. When they subscribe to SaaS providers, they could readily use it for their company rather than take more time, effort and money setting up on their own. Adopting the SaaS model would assure the business managers of the latest and up-to-date technologies there is in the market.

This is because they have a faster access to ne technologies because these providers offer a range of software that the costumers – the business operators can choose from. They are able to access system and software upgrades as soon as it comes out of the market, and also try it for themselves. If it suits their business, then they could easily be upgraded to that. Adopting SaaS There are various companies that provide and adopt the Software as a Service system. These include costumer relations management, accounting, finance, and so much more.

CosmoCom (www. cosmocom. com), a call center costumer relations provider, is one of those who enjoy the benefits of Software-as-a-Service providers (Barnard). Their remark was that with these SaaS’s, it is easier to set-up a contact center, being able to put one up in a matter of minutes. As long as you have the resources and a good SaaS provider, setting up an expansion contact center is very easy. Infor (www. infor. com) boasts that they are a software provider as enterprising as the companies that avail of their services.

They provide business-specific software that aids various companies and organizations in being successful. Another company that provides SaaS is E2open (www. e2open. com), a provider of supply chain management for visibility and control when it comes to networks concentrating on global supply. Their SaaS model assures costumers of a faster payback and a larger return of investments, reduced risks while requiring less IT specialists and unnecessary business resources. Their costumers include Boeing Company, Hitachi, IBM, LG Electronics, Matsuhita Electric Industrial, and more. Future of SaaS

Software-as-a-Service is still a growing technology, and that is attested by SaaS providers, saying that they have increasing number of clients as the passes by. Because of this, there is a high hope that many companies, whether large scale or small scale, will avail of the SaaS system (Knorr). This is because of the aspect of being practical when adopting Software-as-a-Service in companies. Reduced costs and lower maintenance would surely attract these companies attention. The only issue that somewhat limits the adoption of SaaS in most of the companies would be security issues and operational risks.

For those who are new with the concept, they might not want to take the opportunity of having lesser costs in the software aspect at the expense of the whole company’s interests. Many of these companies would want to keep their IT operations and solutions under their noses, even though it would mean additional expenditures for the company. But as trustworthy SaaS providers arise, these companies are more and more putting their companies at the hands of those who are capable of giving them what they wanted without costing so much.


Barnard, Patrick. “The Top 10 Advantages of Software as a Service for the Call Center”. 2007. July 12 2007. Knorr, Eric. “Software as a Service: The Next Big Thing”. 2006. July 12 2007.

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