SaaS (Software as a Service)

• Software on demand refers to computer applications that are delivered as a service via the
Internet. This type of software is also referred to as on-demand software, SaaS (Software-as-a-
Service) and Applications-as-a-Service.

• Software on demand is a new paradigm for the industry that provides the primary benefit of
lowered operational and capital expenses for enterprise information technology services.

• When an organization decides to implement software on demand as a solution for their

enterprise software needs, internal information technology services can become more efficient.

• This is brought about since IT personnel are no longer required to focus on the installation,
maintenance and support of enterprise software and the hardware that supports such software.

• The efficiency gains delivered by software on demand frees up IT personnel for the more
Important task of managing IT resources as a strategic tool to optimize their business operations.
 SaaS (Continued)
• CHARACTERISTICS
• There are several key characteristics at the foundation of the software on demand or SaaS
model of software delivery. Below are key differences of SaaS & traditional software (On-
Premises) models.
• Centralized Hosting / Delivery
• With Centralized hosting this software does not requires the added operational overhead of
providing software to users through different distribution channels.
• Uniform Platform for Delivery
• With software on demand, all SaaS solutions function on a single platform (the Internet)
with a uniform type of client interface (a web browser).
• Open Collaboration / Sharing
• automated user provisioning and self-service account management provides SaaS
consumers with the necessary tools to control how and when they share tasks, data and
information with other users who are internal or external to their organization.
SaaS – Pricing Model
Pricing Model & Advantages:-
• Pay-per-user
• The Pricing strategy is Pay Per User & under this model, a separate cost is incurred for each user of
a SaaS application and is like paying for each copy of software on a workstation.
• Advantages
• SaaS is available on almost all devices and doesn’t usually incur separate charges for tablets,
laptops, phones and other devices.
• Centralized Billing
• billing occurs on a periodic basis (usually monthly) for all registered users. SaaS software
entitlements are best managed through a centralized and existing identity management system.
• VAF Offering
• This pricing model usage is effective when we bundle an increasing number of features i.e. security,
encryptions etc. or types of functionality within each successive tier.