Software as a Service (SaaS), the most widely-used branch of cloud computing, is a software model in which business applications are hosted, managed, and stored in the service provider’s database. Access is granted via an internet connection and is typically paid for on a subscription basis. The popularity of SaaS has grown rapidly over the last decade, and shows no signs of slowing down. The research company, Gartner, estimates Software as a Service revenue to reach $22.1 billion by 2015, doubling in growth from its 2010 revenue of $10 billion.
As the advantages to using SaaS become more evident to businesses of every size, it is extremely important they carefully analyze and understand both the pros and cons behind the service and how it relates to their own business model. While SaaS may be a real advantage for one company, it is not always the right fit for everyone. Although the rapid increase in companies investing in SaaS do indicate the “pros” far outweigh the “cons”, those looking to adopt such a solution should pay careful attention, during the consideration stage, to align themselves with a software vendor which fits into their unique business needs and mission.
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