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This technology allows access to different types of software from the web, through a model called SaaS (Software as a Service). Maybe this term sounds like something new or something you don’t know, but it is not and you will soon realize it.
The SaaS market represents a very large and valuable opportunity, but in order to exploit it you need to know a little about its complexities and dynamics. That is exactly what you are going to learn in this article.
It is a software distribution model that, unlike the traditional one, works thanks to the fact that an external provider hosts applications and makes them available to users through the Internet.
SaaS advantages and disadvantages
It is the one in which the resources and IT infrastructure are owned by the client. The user acquires a series of licenses and installs the software on his own servers. It is the traditional form of software implementation.
Software as a Service or Cloud Software is that which is offered as a service through the Internet and whose payment is conditional on use. The application is accessed through a web browser from any place and device.
Contrary to what you may think, the implementation of an ERP involves some complexity in both SaaS and On Premise (user training, data migration…) If the two systems have similar functionalities, the implementation efforts will be similar. It all depends on the level of customization you need.
Did this post help you, we hope it did! If you still have doubts about which is the best option for your company (ERP SaaS vs On Premise), you can contact us at any time.
Software as a service
SAASSAASSoftware As A Service (Software as a Service). It refers to the sale of software for the use given by the customer, giving access to the software, data and infrastructure for a periodic fee. This changes the paradigm of selling software by licenses in which the software, the infrastructure and the implementation and maintenance of this platform must be purchased. In the SAAS model these activities are performed by the provider and transferred to the customer in the value of the service.
Software As A Service (Software as a Service). This refers to the sale of software for the use given by the client, giving access to the software, data and infrastructure for a periodic fee. This changes the paradigm of selling software by licenses in which the software, the infrastructure and the implementation and maintenance of this platform must be purchased. In the SAAS model these activities are performed by the provider and are transferred to the customer in the value of the service.
On premise licensing
The SaaS contract model is based on recurring payment business. Software as a Service (SaaS) subscriptions are the language of digital transformation.
For example, total cost of ownership (TCO): if the company owns the application, all costs related to its existence must be considered to arrive at the net margin. This includes operating costs, maintenance, upgrades, support, etc.
Another aspect that is undoubtedly a drawback is that all technology perishes. Every business needs to change the applications it uses if it wants to modernize. When this happens, the investment made in technology is lost.
The SaaS model completely changes the commercialization of technology. There is no more TCO, because there is no ownership of the software, but a subscription that allows the company to use it according to the contracted scope.
The SaaS or Software as a Service service emerges as a tool to complement Cloud Computing, the new data storage platform that has resulted in several technological advances.