The ‘SaaS’y Life!

Posted by Aparna on Apr 10th, 2009 | no comments

Most people hate new technology. So, product development should be totally based on the needs of the customer. Technology has become a necessary evil in most cases. You cannot live without it. Everyone is looking for integrated experiences in whatever they use in life. For example, the iPhone – a phone with music, games, internet – is a device that does everything. Services like Flickr, YouTube, GoogleVideos (Picasa), Twitter are taking over.

There have been numerous articles on how Twitter and the likes have been better at providing news than news channels. No one can deny the convenience of having services like GPS integrated with one’s car.Software developers are one of the few species of people who believe that they can change the world – sometimes they really can!

In this age of the internet time, which is faster than fast – practically instantaneous (considering one is still not on dial-up), companies must adapt quickly. Traditional strategies would fail in these days of internet time no matter what the business is. They must keep up with every whim of the customers they cater to.

So, what does internet enable us to do? Primarily, it helps companies cope with competition by allowing them to manage huge databases of employees, products and customers. Through virtual marketing, the technology helps businesses cut traditional business costs and provides 24×7 communication tools like email and web chat to name a few.

All this said, what would the cost be for getting the best software product out there with all the support required?

The answer to that question is SaaS or Software as a Service model. Herein, the developer licenses an application to customers for use as a service on demand. The application could be hosted on the developer’s own web servers or could be downloaded to the consumer device, disabling it after use or after the on-demand contract expires.

On-demand licensing and use alleviates the customer’s burden of equipping a device with every conceivable application. It enables software to become a variable expense, rather than a fixed cost at the time of purchase. It also enables licensing only the amount of software needed versus traditional licenses per device. SaaS also enables the buyer to share licenses across their organization and between organizations.

Using SaaS can also conceivably reduce the up-front expense of software purchases, through less costly, on-demand pricing from hosting service providers. SaaS lets software vendors control and limit use, prohibits copies and distribution, and facilitates the control of all derivative versions of their software.

The sharing of end-user licenses and on-demand use may also reduce investment in server hardware. SaaS is generally associated by software professionals and business associates with business software and is typically thought of as a low-cost way for businesses to obtain rights to use software as needed versus licensing all devices with all applications.

Having listed the advantages of SaaS, a mention of certain drawbacks – Data transfers happen at Internet speeds (so advisable to subscribe to better speeds) Widespread implementation of SaaS requires well defined services as well. Availability of open source applications, inexpensive hardware, low-cost bandwidth push customers to operate their own software.

In conclusion, one can say that communication is key between the software developers and the business personnel. The motto must be “We are listening!” and we definitely are.