As many of you already know, a SaaS (Software as a service) application is a cloud computing term that describes software that customers use for on-demand service that is provided through a subscription and is accessed anywhere there is an internet connection. In other words, vendors make a SaaS application available where businesses essentially “rent” the software and pay for this service based on actual usage. Successful SaaS applications like Salesforce.com and Google Apps have become increasingly popular as companies are experiencing lower front-end costs and no longer need to struggle with the time associated with implementing and managing licensed software.

We’ve compiled a small list below to help further illustrate the benefits of implementing a SaaS application:

1. Lower Costs: Choosing a SaaS model for your business eliminates system licensing fees and a “pay-as-you-go” subscription allows users to pay for this service based on actual usage. This greatly reduces overall operational costs associated with maintenance charges and licensing fees.
2. Quick Deployment: Since implementation does not involve any software installation, the system can be used almost immediately with minimal involvement from IT. The software is available wherever there is access to the internet.
3. Automatic Upgrades: Because SaaS vendors manage the upgrade process, they are responsible for administering any new releases and future enhancements. This ensures users are always using the latest versions of the software that is being provided.
4. Built-In Support: Time spent on managing the system is greatly reduced because the network already comes with support services and disaster recovery. Not only will saving time be a factor, the fees associated with support will be reduced as well.
5. Scalability Made Easy: A SaaS model is easily scalable as it offers the flexibility to easily change the amount of users on demand. A growing company has the freedom to increase the amount of users at any time since the software is being delivered as a service.

As companies continue to look for cost-effective ways to remain competitive in the marketplace, SaaS applications have shown to improve overall efficiencies associated with traditional software installation and maintenance. Just like Salesforce has become a leader in Customer Relationship Management and Google Apps’ web-based messaging and collaboration apps are being offered as alternatives to Microsoft Exchange and Lotus Notes, the SaaS model is becoming a very valuable component for today’s businesses, both large and small.