SaaS - Software As A Service

Requirement

Write a 2 to 3 page paper focused on Software as a Service (SaaS), and explain what advantages and disadvantages it can bring to an organization. Explain what precautions organizations should take to minimize the risks associated with SaaS implementation.

Solution

Introduction

SaaS is terms as Software as a Service. It is a method that facilitates data accessibility from any device that has an internet connection and a browser. It is a software delivery method, which is based on a web-model. A vendor hosts database on their own servers and that basically creates an application. It is method of doing away from an on-premise hosting of a software application (Singleton, 2016). Hence, it helps in cost cutting. Companies are not required to invest in expensive hardware and software applications. In the beginning, SaaS couldn’t catch the attention of the enterprises because they had many apprehensions about hosting their data on someone else’s server. However, in the last five to seven years, the SaaS companies have been able to attract customer. It is driven by the cost saving model that helps company save the cost of expensive license for the software products. Last but not the least, SaaS offers a customized web based interface for easy management of data and other hosted components.

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Advantages of SaaS

  • Deployment Time is Less: SaaS software provides a faster solution as compared to in house deployment of the software application. In general, average time for the new application hosting is decreased by 20%. 

  • Less Responsibility of Internal Teams: Everything from hardware to software are outsourced to the vendors. It becomes responsibility of a SaaS vendor to take care of all the activities related to hardware and software.

  • Scalability and Flexibility: Business can chose a plan that is relevant to their need. Moreover, the SaaS is scalable and it serves the business need whenever required. Enterprise will change their plan and pay more as per the use ("The Benefits and Drawbacks of SaaS models | Claims - ClaimVantage", 2014).

  • Ubiquitous Access: It only requires a client to have an internet connection to access data anywhere.

  • Resilience: There is always a contingency plan for the backup data. In case there is any issue with the data center, a company can access the same data from some other server, hence a higher resilience.

Disadvantages of SaaS

  • Security Issues: It is the main road blocker for the SaaS providers.Hence, management of private data is a sensitive issue for the companies. However, with the advancement in the technology and security methodologies, the data security has been increasing with every passing year. Tokenization and Encryption methods are employed by the SaaS providers.

  • Compliance: A few companies have regulatory compliance issues. For example, a bank has a compliance issues from the regulators, hence they have to ensure that SaaS provider is meeting those guidelines. In case it cannot be done, banks cannot outsource (McLellan, 2013). 

  • Performance Concerns: It is sometimes a concern for the companies that accessing data over the browser can be slow as compared the hosting data on a local machine. However, the internet and data transmission rate has improved a lot in the past decade, so is the Performance of the SaaS. It is evident that sometimes it is not beneficial to outsource everything, but a few things are useful to be outsourced to SaaS. 

Precautions Before Using SaaS

SaaS always had intrigued enterprises about their data safety. Also, companies should also consider a situation where a vendor can go out of business. In the software world, it is highly probable that a company might run out of business. So, what is the clause for the client’s who are hosting data with the SaaS vendors. So, it is a primary concern for the companie, hence checking SLA and other clauses is important at the time of appointing a SaaS vendor. There should be a clause about exporting data in case Vendor is shutting down or it is acquired by someone else. The clause should provide the complete guidelines about data export and the format in which it can be exported.  Last but not the least, SaaS providers interface and accessibility should be evaluated properly. Employees must be trained about using the SaaS interface, hence it is an important consideration ("Top 10 considerations when implementing Software as a Service", 2016). 

Conclusion

To Summarize, SaaS has been a turnaround for the enterprise looking after the low cost, secured solutions. Moreover, it saves time of deployment too. An enterprise should check both SLAs and Contract thoroughly to rule out any problem at the later stage. Apart from compliance issues, SaaS is a good option for both medium and big size enterprises. 

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Reference

  • Top 10 considerations when implementing Software as a Service. (2016). SearchITChannel. Retrieved 24 April 2016, from http://searchitchannel.techtarget.com/feature/Top-10-considerations-when-implementing-Software-as-a-Service

  • The Benefits and Drawbacks of SaaS models | Claims - ClaimVantage. (2014). ClaimVantage. Retrieved 24 April 2016, from http://www.claimvantage.com/2014/01/29/benefits-and-drawbacks-of-saas-models/

  • Singleton, D. (2016). What is SaaS? 10 Frequently Asked Questions About Software as a Service - The Software Advice Blog. Blog.softwareadvice.com. Retrieved 24 April 2016, from http://blog.softwareadvice.com/articles/enterprise/saas-faqs-1072811/

  • McLellan, C. (2013). SaaS: Pros, cons and leading vendors | ZDNet. ZDNet. Retrieved 24 April 2016, from http://www.zdnet.com/article/saas-pros-cons-and-leading-vendors/

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