The software as a service (SaaS) model is a way of providing the same software to different clients over a network, usually the Internet. In other words, the software is not hosted on individual client computers. In the SaaS model, a provider is responsible for creating, updating, and maintaining the software. Customers purchase a subscription to access it, which includes a separate license or seat for each person who will use the software.
man holding computer
The Saas model can add efficiency and cost savings for both the provider and the customer. Customers save time and money by not having to install or maintain programs. Customers do not need to hire employees or use existing employees to maintain the software. They usually don’t need to buy any new hardware either. This allows the client to focus more resources on growing the business.
Shifting the burden of hosting and software development to the provider can also speed up the time it takes for the customer to see a return on their software investment. Using the SaaS model, the number of stations can be increased as the business grows. This is usually faster and cheaper than buying another license and adding it to another computer, like with traditional software.
Providers often only need to update and maintain software on the network, rather than update different copies of the software on different computers. This allows the provider to deliver the latest updates and technologies to each customer in a timely manner. The disadvantage for the client is that they do not control the software and the customization of the programs may be limited.
If a customer requests an upgrade, it is likely that it should benefit other customers who are also using the same software. If the customer has completely outgrown the software, the company can simply discontinue their subscription at the end of the current contract. In this type of cancellation, it is not usually necessary to remove applications from client computers. Typically, the canceling customer retains ownership of all ownership data entered into the SaaS application.
SaaS Model Agreements may be terminated early for just cause. The supplier does not deliver the software in a timely manner, or does not deliver, or the software does not function as specified in the contract, are all grounds for termination of the contract. However, with broadband technology becoming more common among the workforce, customers have many options when it comes to software delivered in the SaaS model. Customers can thoroughly research SaaS providers and request current references to help avoid non-delivery issues.
