Topics: Software as a service, Economics, Corporation Pages: 2 (681 words) Published: April 2, 2013
SaaS, Software as a service, is an increasingly common business solution for distributing software to companies or individuals through a web browser, rather than a dedicated application. Usually, these services are subscription based, but fully paid products exist as well. There are both positives and negatives to Saas, which I will discuss here. Pros:

First and foremost is convenience. Because SaaS is used over the air, updates come frequently, and most importantly, automatically, and are usually free. Instead of having to be concerned about maintenance, the end user has more time and resources they can now put towards other aspects of the company. Also, because SaaS is a pay as you go service, there is no large licensing fee- which leads to the next benefit of SaaS, which is cost. The way SaaS' pricing systems are usually structures benefits both the provider and the user. For the provider, this monthly or yearly fee provides a consistent revenue stream for as long as individuals are using the product. For the user, this pricing system allows for a up front cost that is a fraction of the cost of entire software package, causing more resources to be available at any given time to use elsewhere. This is especially beneficial to startups, as they tend to have much less liquid cash to spend on software packages. From the perspective of the user, SaaS tends to be much easier to use than a regular software package. Rather than have to update or maintain a system on their own systems, a company simply waits for over the air updates from the service provider. The main benefit here is reliability. Because all or most of the files worked on under SaaS are on the cloud, protection against data loss is much greater. It is in the best interest of the SaaS provider to protect your information, and therefore leads to a much higher level of security than one my have even within their own business. Cons:

There are many aspects of SaaS that could be a positive benefit to one...
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