Software on Demand Software as a Service Utility Software

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Software on DemandSoftware as a ServiceUtility
Software
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What is this?

• They use a different method to deliver software
  to business user. Instead of selling software
  like one sells a car or stereo with a manual,
  they rent the software usage to companies and
  individuals. The software is housed and managed
  at the companys own facilities. The web is used
  to interface with the software used.
• The financial model involves charging a fixed
  rate per user per month about to gain access to
  the software.

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Advantages of SaaS

• Ease of deployment
• Time of deployment
• Little startup costs
• Well defined cost structure no ahead of time
  investment required
• Ease to change upgrade
• Availability Reliability
• Security
• Try before you build
• Predictability
• Web interface
• Lower risk
• Ease of scalability
• The responsibility belongs with the vendor
• Optimize hardware design on the software being
  rented
• Cost (remember that 80 of any software cost is
  deployment, maintenance training)

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Disadvantages of SaaS

• Outsource mission critical functions
• Lack of control and customization
• Integration with other on demand vendor software
• No differentiation with competitors

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Why this bus model has taken so long to take off

• Fear of losing control
• Comfort with using the web for mission critical
  operations
• Technology/broadband was not in place
• Resistance to change particularly by IT people
• Past experience with ASP providers

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Other On Demand vendors

• Amazon
• e-bay
• Google