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(Wireless-NewsWire.Com, July 26, 2016 ) A software distribution model allowing sharing of applications that can be accessed and monitored even through a remote location with the help of a web browser via a single tenant or multi-tenant architecture is SaaS. In this model, applications are hosted by a vendor and organizations are charged on pay-as-per use basis. This feature reduces the additional costs of maintaining the infrastructure for software storage which the organizations had to pay for in the traditional model of using software. SaaS is there to substitute the conventional application service provider model on account of various advantages it offers to the organizations.
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Lower Total Cost of Ownership (TCO) is one of the factors driving this market, as organizations are constantly looking for opportunities to minimize their costs and maximize profits. The advantage of having deployed SaaS model for an organization is the reduction in the CAPEX for them. SaaS means paying for the usage of software only on a subscription basis and as per the amount used. The end-user using the software does not have to pay for owning the software and instead the software is owned, maintained and upgraded by a third-party vendor. This gives the organizations the leverage to divest their investments to improve their technological aspects as the competitive differentiator inside the organization and focus more on their core competencies.
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Along with the purchasing price of the software, Total cost of ownership (TCO) also includes the other hidden associated costs as well. Installation with existing systems, maintenance, operations and timely upgrades can be few costs associated with the on-premise software applications. All these needs get eliminated in SaaS where sharing of infrastructure is employed. The need for servers, backups, the complexity of upgrades and version control are eliminated as well. SaaS finds its applications for many industrial applications out of which CRM, ERP and HRM are the most prominent ones.
Salesforce.com is one of the pioneers in enterprise SaaS-based CRM solutions globally. Salesfroce.com is the world’s one of the largest providers of SaaS-based CRM solutions. Workday, Inc. is another one of the market leader in SaaS-based HRM applications. Both companies have established themselves as the premier players in respective SaaS-based application providers segment. Efficient CRM and HRM become one of the integral parts of any organization’s success. Customers and employees, both are assets for any organization in the medium to long term for a business. Organizations thus have realized the importance of CRM and HRM are effectively employed. This need for improved customer and employee services coupled with the benefits of cloud technology would further impact the growth of SaaS market.
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