Software as a service or saas is not new in the IT business. This type of software business model has seen better days in the early part of 1990. It was called ASPs then or application services providers. The limited success of ASPs was due mainly to its inability to deliver the expectations of the market which rested primarily on software reliability. Back then, software service providers focused their attention on building data centers and main frames that can host the applications. Software development was sacrificed. The expensive build up of hardware was not complemented by expected profitability which resulted to huge losses.
Today, there is renewed activity in this segment of the software industry. The market has been reacting positively to the new software services providers. This is due to improvements and advances in software development which now gives the consumer increased flexibility and customization. The bullishness of the saas business model is now the hottest topic in the IT industry. More start up saas companies are emerging offering innovative and user-friendly software. Some of the most successful saas providers are deploying their applications to numerous businesses and enterprises.
The impact of software as service is beginning to be felt in the business world. Some enterprises have been adopting the saas model as a solution for their computing needs. This is especially true in the fields of customer relationship and human resources. More complex business processes however are being enabled to work in the saas environment. These developments contributed to the increasing popularity of software services among technology analysts, technicians, and end consumers.