How is SaaS Different?
The SaaS business model and underlying technologies differ from those of traditional software vendors and products in several ways:
No Vendor Lock-in
Because SaaS applications are subscription based, customers can always choose not to renew if they’re dissatisfied, making providers more accountable.
No Large Up-Front Investment
With SaaS applications, customers avoid the large initial investment in an IT infrastructure and the day-to-day responsibility of maintaining that infrastructure.
No Maintenance Headaches
SaaS customers all share the same provider infrastructure, which centralizes administration and updates. Plus, integration is simpler because there’s no need to support several platforms and multiple versions.
No Steep Learning Curve
SaaS applications use a familiar Internet interface, so customers expect the ease of use and constant innovation of the consumer Web, helping to drive adoption.
No Outdated Solutions
SaaS applications are innovating at a rapid rate because developers are focused on what’s next rather than on maintaining numerous versions of old code. SaaS vendors use the same technology architecture as the best consumer Web: companies like eBay, Google, and Yahoo!, which enables the same levels of continuous innovation.
"The 7 Secrets of SaaS Startup Success"
With the SaaS model, vendors can enjoy low barriers to entry and unprecedented opportunities as well as new risks and challenges. Creating and managing a SaaS company demands a new way of running a business. Learn from successful SaaS companies and salesforce.com ISV Partners in this whitepaper.