SaaS Software as a Service
SaaS stands for "Software as a Service", and is basically the name given to the provision of software to many customers via the Internet or another public network. This means that the customer does not need to install or host any software on their own site, nor do they need to concern themselves with buying servers to host the software, backing up applications or data, security, software updates, or indeed maintenance of any kind. Therefore this is less expensive for customers who would otherwise have had all of the above responsibilities eating away at their IT budget. This model also allows for customers to avail of services in a pay-as-you-use manner. Organisations can wait until business picks up before they incur the cost of additional user licenses for the service.
While the SaaS model generally results in reduced costs, interestingly it is the convenience that often attracts organisations to SaaS rather than the cost savings. Maintenance, data storage, archiving, backups, security and monitoring are all out-sourced, therefore the organisation has shed all of these concerns allowing its resources to instead focus on sales and business growth. In many cases the difficulty in hiring suitably skilled staff in these areas is eliminated, as a single monthly payment to a Cloud Provider covers everything. And in many cases this monthly payment is lower than the ongoing salary costs of such hires.