The first question is what a SaaS model of software is? ‘Software as a service’ (SaaS) is a model of licensing and delivery for software where the software is licensed to users on a subscription base and is hosted centrally. SaaS is usually accessed by users with a thin or lean client via a web browser.
One big example of this is Microsoft’s Office software – you can’t buy a personal copy anymore as they are now offering this popular software on a subscription basis. Often the free copy will come on a new computer and after a year, you pay a renewal fee on a yearly or monthly basis.
Why this model
Kings of the Web’s article about SaaS vs Saap is excellent in helping businesses understand which is better for their needs.
With SaaS software model, a company pays for only what they need, not needing to buy more or newer hardware to host the new program. They also don’t have to prepare and equip a network to allow it to provide new services to its users. The vendor does most of the work that is needed to get the software working for the client. The time for being up and running can drop from months traditionally to days or merely hours with the model of SaaS.
With some companies
With some companies, their IT department might not want to do anything with installing and getting up and running a new app. In this case, funding software as well as implementation can be a ‘make or break’ issue of the budget for sales and marketing so the lower cost will make the difference in whether to buy the software are not.
Reduced time to benefit
With the SaaS model, software app itself is already configured and ready for use. Users easily access the server then the cloud and have the app ready for use. This cuts the time to benefit and permits rapid demonstrations. With many SaaS models, vendors offer free trials, meaning there is a painless phase for proof of concept and discovery as well as proofing benefit to the business that is thinking about buying the software.