“Software as a Service” is the cloud-based delivery of enterprise and consumer software solutions designed to eliminate complexity in software management.
Saas, or Software as a Service, is a specific method for supplying software applications via the internet. Vendors host the programs, data, and logic in one centralized location so that any number of users can access the software at any time.
There are two main types of SaaS services.
1. Line of business services refer to when business solutions are offered to, sold, or otherwise made available to a specific group of consumers on a subscription basis. Examples of service include customer relations applications, supply chain management services, and similar industries.
2. Customer oriented services are generally offered to the public on a subscription basis or even for free, but with supported advertising. Web-based email services such as Yahoo or Gmail fall into this category.
SaaS Rental or Ownership
Commonly, users pay a one-time fee to purchase a software package or a monthly fee to use of online services.
The advantages of utilizing SaaS billing services for an organization include:
Cost Reduction. Users do not usually have to pay a single large licensing fee, only for the service time used.
Smaller business storage requirements are demanded since the user will not need to store data on their private machines. Not needing constant and consistent backup is also a huge convenience.
Fewer employees means less expenditure and maybe extra funding to help continue the improvement of your organization’s IT growth.
The basic advantage is the consistent stream of income that far outweighs the one-time fee and forget nature of some software licensing setups.