Developing software and delivering it to consumers as a service is a new innovation in the software market. Saas mod or software as service model actually started getting the attention of technology specialists and consumers just recently. It is a novel way of selling computer applications to a wide consumer base.
Software as a service incorporates two factors in the technology equation and those are advance computer software and Internet technology. Individuals or companies in need of a particular program can utilize it through the web browser. It eliminates the use of on-site installations and local servers to host the application. The program can be accessed remotely because the vendor provides everything, from software, remote hosts, to technical support. The saas model brings to end users all the convenience in using the program.
Start up companies can benefit greatly from the saas model. Because of the characteristics unique to saas, start up companies can reduce their initial capitalization requirement and save on operational costs concerning their information technology needs. They also get the maximum benefit of having a fully operational computer application and a 24/7 technical support at a cost that could be considered peanuts.
Saas technology at present primarily services small and medium sized companies. But this sector of the software industry has been showing vigorous growth in the past years. This could be interpreted as a very positive reaction of the market to software services. If trends continue, the saas model could replace the established software distribution model. This possibility is actually not far from reality.