As per Wikipedia, “SaaS” could be defined as a software delivery model in which software and its associated data are hosted centrally (typically in the Internet cloud) and are accessed by users using a thin client, normally a web browser over the Internet.
SaaS is becoming a popular model in various software development companies as the technologies used by SaaS that support Web services and service-oriented architecture (SOA) are now being used in a much greater scenario. There are a number of reasons associated with SaaS model usage. A few could be listed as follows:
Software-as-a-Service (SaaS) has earned its name both as a business model and as an application delivery model. SaaS helps customers use an application on a pay-as-you-go basis and reduce the need of installation and then the application can be made to run on the customer’s own hardware.
The general concept of SAAS (Software-As-A-Service) can be discussed as:
Unlike the standard approach for using software where the user has to purchase the product and get a license, where the application is installed directly on the user’s computer, SaaS means that the software or its components will be installed on the provider’s server. The clients access the software through cloud computing platform on the internet and pay for it on subscription basis (e.g. monthly). Through this, businesses gained the opportunity not to buy the software, but to rent it. This saves their money as well as their time and maintenance cost. One has to just hire a support staff and the client can just turn to a provider and use his system that is customized according to his needs. So, for example, if the client wants to implement an ERP system, then he would have to buy licenses, equipment and pay for the system customization. By using SaaS, the client has to pay only for the customization services.
The Software as a Service (SaaS) Model is the combination of a Business Model and a Software Delivery Model.
The SaaS model takes hold of the concepts in the distributed application architecture but further broadens the architecture in order to include components to facilitate and enhance the business model. A SaaS solution benefits particularly small and start-up businesses that do not have either the budget or the in-house expertise to readily support an investment in IT infrastructure.