The Benefits of SaaS

The Benefits of SaaS

Cloud computing is the practice of using a network of remote servers hosted on the Internet to store, manage, and process data, rather than a local server or a personal computer. It relies on the power of servers to deliver services to businesses and consumers. It is commonly referred to as “Cloud Services,” “Software as a Service model,” or “SaaS.” In cloud computing operations the complexities of the technology architecture are in the cloud and often not apparent to users. Via an Internet browser or other interfaces, a user can access software capabilities in the cloud servers remotely or even locally, in the case of a private cloud, and is not limited to the software stored on the user’s device. 

General Characteristics of SaaS

  • Vendor, not the customer, owns the software.
  • Customer does not develop, host, or maintain software or infrastructure hardware.
  • Customer uses the service through a client, often a web browser or software applications.
  • Subscription-based pricing is common and often tied to actual usage.
  • Vendor has and processes customer data using the vendor’s hardware and infrastructure.

 Primary Benefits of SaaS

  • Cost and Other Resources Savings. SaaS solutions are often cheaper than other alternatives because no major infrastructure investments or technology is required. The payment is often tied to usage.
  • Highly Scalable. SaaS solutions are designed to be scalable across large and small organizations and teams. Because the resources are in the cloud they can be often relatively easily expanded and contracted to accommodate demand changes. They also encourage collaboration for global teams and individuals who travel.
  • Productivity Improvements. SaaS products are generally easy to use and don’t require a lot of technical knowledge and experience. SaaS services are usually designed to appeal to a broad range of customers and user-friendly. They are often accessible through an internet connection or mobile devices.
  • Effective Technology Risk Management. SaaS solutions reduce maintenance and infrastructure risks because software updates and patches are responsibilities often expected of and delegated to the SaaS vendor.

Tomorrow Christina Hsiang of Carr & Ferrell LLP and I will further discuss general issues to considered in a typical SaaS negotiation.  Please register for a free webinar here

This article is co-authored by guest author Christina Hsiang. 

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