How is SaaS Different?

Get ahead without getting locked in

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  • No Outdated Solutions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 Future of Business Applications

Gartner predicts that SaaS could represent a third of all business application spending by 2012, indicating that its appeal has spread beyond small and midsized organizations to the enterprise. This trend also could prompt major software providers to think about swapping their traditional client/server model for an on-demand computing approach instead.