The megatrend that powers SaaS is the same one driving Web 2.0, SOA and every other expression of today’s increasingly Web-connected world. Fundamentally, the infrastructure of the Web allows us to cut out much of the location-dependent friction that gets in the way of communicating, collaborating and trading. Software used to be delivered in boxes and had to be installed in the same building as the people that used it. The Web removes those constraints, enabling SaaS — and SaaS in turn becomes the foundation for innovative new ways of interacting and doing business.
Software as a Service (SaaS)—meaning delivering software over the Internet—is increasingly popular for its ability to simplify deployment and reduce customer acquisition costs; it also allows developers to support many customers with a single version of a product. SaaS is also often associated with a "pay as you go" subscription licensing model.
Under a "pay-as-you-go" model, your customers gain access to desired applications developed and managed by SaaS. All necessary software, hardware, and connectivity are provided in addition to the 2nd tier support.
As ISVs devise new ways to deliver their applications, the relationship between this delivery and the infrastructure software provider needs to change.
Virtualization makes it easy to go SaaS. One of the factors making it much easier for independent software vendors (ISVs) to adopt SaaS is the emergence of virtualization technology. No doubt, it will be a big factor this year in helping many ISVs, large and small, get their first experience of delivering software in a service model.
A year ago, you could still find plenty of SaaS worrywart amongst the mainstream software vendors. Now even SAP and Oracle are keen to show off their SaaS credentials. Today, people in software business have realized it’s time to follow suit. Oracle is drawing together the elements of its own SaaS platform — its products are already in use at many SaaS ISVs. Microsoft is working to make its own server products SaaS-ready. The more mainstream SaaS becomes, the more these vendors will be forced to offer effective platforms for ISVs and enterprises that want to build SaaS applications.
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