Software as a Service, more commonly called nowadays as SaaS, is a relatively new concept of providing software applications for users. It is a form of software deployment where a software application is being hosted by a server maintained by a service provider and where it can be accessed from the Internet. Software as a Service or SaaS is part of a new concept for the Internet called "cloud computing".

Characteristics

One of the key characteristics of SaaS is that software applications can be accessed and managed through and based on a network. The network concerned is of course the Internet. Software applications are made available through a centralized location instead of them being accessed on separate sites, such as on individual PC's. And because access is centralized and made online, users may be able to manage and use the applications and their data through the Web from anywhere.

Through the SaaS model, the use and access to application software no longer depends on one PC or desktop having the installed software. Delivery of the application is made through a single installed software application being made available to many clients. This can change the way companies may deal with IT infrastructure and management.

Because of the centralized nature of SaaS, clients no longer have to worry about using outdated applications since the service provider of the application software has the responsibility of installing and upgrading the application. And charges for the service can be in the form of monthly subscription or on a per-use basis. With the software application and its use being shared by various clients, the fee may generally be lower as compared to the expense of trying to maintain an internal server or mainframe infrastructure.

Advantages

There can be certain advantages and benefits enjoyed by the use of SaaS. First off, with software application made available from the Web where it can be readily utilized, the need for installing applications on individual PC's is virtually eliminated. No longer would companies have to avail of software applications that they require by purchasing them from vendors. This can amount to a considerable expense that may not be affordable for some small businesses.

With the use of SaaS, companies no longer have to build up or establish and maintain their own database and server systems as an online service provider would do that service for them, saving a considerable amount of capital needed to build up such an infrastructure. And because SaaS usually comprises of software applications that many clients would need, overall costs in terms of using such a service would be substantially be more affordable.