Why buy a license when you can just rent the technology?  This has been the catch slogan of many software vendors trying to sell the saas model.  And it is true.  Software as a service is a business model that rents out a computer application using the Internet as a platform for the delivery of the service.  It is an innovative service which significantly reduces the expenses of end users in terms of buying licenses for the software and setting up the necessary IT infrastructure to run the application.

A lot of software companies today are jumping on the saas bandwagon.  Many computer applications have been enabled in order to run the saas way.  This segment of the software industry has been growing for the last few years in terms of increasing sales and customer base.  On demand software for individual and personal use as well as business and enterprise software have been developed to meet the demands of the market.

Businesses, especially start up companies, are utilizing saas for their basic computing needs.  The model reduces their initial investments because saas eliminated the need to set up a full IT division together with its concomitant technology architecture.  Businesses are using saas to run their customer relations management, automation of sales and marketing division, and human resources management.  These are only some of the vital functions that saas companies can handle.  Top-caliber ASPs are already including inventory control and management and corporate financials to their software deployment.  That is why the saas model has been gaining loyal customers and paid subscribers.

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