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 We Deliver Services Not Software
Software as a Service (SaaS) Software as a service (SaaS) is a software application delivery model where a web-native software application is hosted and operated for use by its customers over the Internet. Customers use the application through a web browser over internet, eliminating the need to install and maintain software. The term SaaS has become the industry preferred term, generally replacing the earlier terms Application Service Provider (ASP) and On-Demand. Customers do not pay for owning the software therefore eliminating the upfront costs but rather pay for using it.
As a term, SaaS is generally associated with business software and is typically thought of as a low-cost way for businesses to obtain the same benefits of commercially licensed, internally operated software without the associated complexity and high initial cost. For supply managers this means accessing e-auction and e-sourcing applications, research and intelligence (supply market data, category templates), and support services (spend data cleansing, sourcing event management) as integrated Web services. The key characteristics of SaaS software, according to IDC, include: - Network-based access to, and management of, commercially available software.
- Activities that are managed from central locations rather than at each customer's site, enabling customers to access applications remotely via the Web.
- Application delivery that typically is closer to a one-to-many model (single instance, multi-tenant architecture) than to a one-to-one model, including architecture, pricing, partnering, and management characteristics.
- Centralized feature updating, which obviates the need for downloadable patches and upgrades.
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