What Does Software as a Service Mean?

Software as a Service (SaaS) is a modern software distribution model in which a third-party provider hosts applications and makes them available to their clients over the internet. As a category of cloud computing, SaaS is similar to an application service provider (ASP) where a host provides the customer’s software and delivers it to any approved end-users through secure internet channels. But what benefits does Software as a Service provide and how can businesses or organizations leverage it for the biggest impact? 

Software On-Demand with SaaS 

With a software on-demand SaaS model, a provider host can give customers network-based access to one single copy of the software that has been created for Software as a Service distribution. Once the application is available through a host, the source code will be the same for all end users. At the same time, any new features or updates that are rolled out will be automatically available to all end users.  This approach ensures that each customer that is using the software has the same capabilities and will not require individual manual updates through each access terminal or computer that the employees are using. 

Software as a Service removes the need for a business to run applications on their own computers or through their own designated data centers. This unique characteristic eliminates the need for expensive new hardware or software licensing, installation and support. In addition to these benefits, all provisioning and maintenance will be handled by the host – creating a seamless and issue-free experience for the end-user. Some of the other potential benefits associated with SaaS services include: 

  • Scalability – SaaS services offer high vertical scalability to give a business the option to add more services and features quickly through the implementation of new software. At the same time, organizations can scale back to remove unneeded features and limit the level of access or permissions available to employees. 
  • Accessibility – Because SaaS serves end-users applications over the internet, the software provided can be accessed from any internet-enabled device or location with a reliable network. This means that, with the right system in place, employees can work from home or multiple devices whenever needed. 
  • Automatic Updates – As previously mentioned, SaaS provides the ability for businesses to update their software automatically for all users or ensure patch management. This can, in turn, reduce the burdens placed on in-house IT teams and ensure the software is maintaining a high level of support at all times.  

The team at Excipio Consulting knows how important Software as a Service capabilities are for modern businesses to succeed. Since 1999, our clients have included a variety of Fortune 1,000 enterprises, governmental agencies, and vertical marketing industries. Our proven Economic Analysis Modeling and Methodology (EAMM®) process and toolset provide clients with a comprehensive analysis that helps them make high informed technology strategy decisions – including the decision to pursue Software as a Service. If you are interested in learning more about the services that Excipio Consulting provides, please call our corporate office at (918) 357-5507.