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Software as a Service: Perpetual Versus Saas Sales Licensing Models

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Software as a Service: Perpetual Versus Saas Sales Licensing Models
|Software as a Service |
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|Perpetual versus SaaS sales licensing models |
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| | 2012 |
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Executive Summary
Efficient use of information technology (IT) can be a source of competitive advantage therefore software as a service (SaaS) has become an alternative to perpetual sales models as a means of reducing expenditure on IT. SaaS is a cloud enabled technology which evolved from applications service provider (ASP) and provisions software application services on a pay per use or subscription basis. No upfront investments on IT infrastructure or software is required as the service provider hosts, maintains, secures and upgrades the software as part of the service it charges users for. Future trends reflect that more IT users will be switching from the perpetual to SaaS model. Access to software applications is authorised by using software licenses which protect the rights of the software vendor (developer) against loss of revenue through piracy and protect the user from inadvertently violating the vendor’s rights and being fined. There are various types of software licenses that cater for perpetual and SaaS sales models and the use mechanisms to


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