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Software as a Service (SaaS) by Mind Map: Software as a Service (SaaS)
3.0 stars - 1 reviews range from 0 to 5

Software as a Service (SaaS)

Definition

software application distribution model

hosted by a vendor or service provider

available through a network or over the Internet

Evolution of Saas

In-house or off-the-shelf software

ready-made and available for sale, lease, or license to the general public

development of an information system internally within an organization

Application Service Provider (ASP)

applications are hosted by third parties

takes off-the-shelf software and runs it for customers

SaaS

started to flow in the IT industry during 2000-2001 as a business solution for many firms

practical and useful when it comes to adding new functionality

Role of SaaS

provide solutions for small to medium businesses (SMB)

provides enterprise-class product at a low cost and with less complexity

increases productivity, reduces IT costs, and upgrades software applications

SaaS Application Characteristics

network-based access

priced on a per-user basis

application delivery that has multi-tenant architecture

activities are managed from central locations enabling customers to access applications remotely via the Web

Impacts of Saas in the Industry

Advantages

Save money and time

Focus technology budgets on competitive advantage rather than infrastructure

Gain immediate access to the latest innovations

Join a community of interest

Disdvantages

the code is not customizable for any individual customer

the need to provide constant client visibility and improvement of the software value over time

service interruption or downtime

Opportunities and Concerns

SaaS will make up 30% of the software market by 2007 and will be worth $10.7 billion by 2009

measures must be taken to ensure the security, reliability, and availability of data

provision of Service Level Agreement (SLA) guarantees, allowing customers to pay for exactly what they need