Uncovering SaaS: A new software revolution

Software as a Service (Saas) is defined as “Software deployed as a hosted service and accessed over the Internet” by Microsoft. Software has traditionally been delivered in boxes with a license and often with a maintenance contract. The Web removes all these formalities, enabling SaaS to become an innovative way of interacting and doing business. SaaS is based on a very simple premise – rather than buying a software license for an application such as Accounting or Human Resources and installing this software on individual machines, a business or an individual signs up to use the application hosted by another company. The consumer therefore simply uses the software by paying a subscription fee, rather than owning a copy of the software. Two successful examples of SaaS are salesforce.com, a SaaS-based Customer Relationship Management (CRM) service and webex.com, an online video conferencing service.

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