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Software as a service: Outsource the hassle, stay in control

* Advantages of software as a service
By Dan Twing , Network World , 02/08/2006
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Software as a service is a model of software delivery where customers access network-based software. It has many names, such as hosted software, ASP (in the 1990s), service bureau (in the 1980s) and is currently referred to as on-demand software. There are many well-known offerings such as SalesForce.com for CRM or any of the free online e-mail systems like YahooMail or Gmail. These examples reflect another point about SaaS, which is that it can be for either business or consumer software.

SaaS is basically outsourcing the management and operation of software required to support a specific function. A recent addition to the SaaS market is a desktop management offering from WebEx.

This SaaS offering for automated desktop management provides sophisticated management tools to automate effective desktop management without the cost and hassle of on-premise software and hardware. Many vendors offer fully outsourced desktop management, however, the loss of control of such important internal infrastructure and the additional management efforts required to manage an outsourcer are trade-offs that some companies do not wish to make. The SaaS model provides relief of many of the functions required to run a major software suite while allowing internal IT staff to remain in direct control of the actual management functions affecting end users.

Following are my top 10 reasons to consider SaaS:

1. Rapid implementation: There is no faster way to get started with a new software application than to take advantage of a professionally run service. Even complex business process oriented applications can be ready to go in less than 30 days.

2. Lower cost to implement: Implementation costs are significantly lower than developing custom solutions or purchasing and installing proprietary software and hardware.

3. Lower cost to operate: The SaaS model spreads infrastructure, development, maintenance and future innovation costs across a broad base of users.

4. Reliable cost forecasting: Subscription fees are predictable, allowing you to forecast your IT costs over several years.

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