Looking forward to SaaS

We often see in tech news some references to Software as a Service (SaaS). Well, what is it?

It's a software distribution model in which applications are hosted by a vendor or service provider and made available to customers over a network, typically the Internet. 

The concept of a "service", whether we're talking about sending a letter or an email, falls on a functionality that can be used as part integrating of a whole or just used by itself. Today, we can already find the so called software as a product systems, like CRM, document management, stock management, among others, being available as services. Same functionality, no installation required.

We're before a paradigm that allows organizations to access business functionality remotely, removing the need to handle the installation, set-up and often daily upkeep and maintenance of their software. With today's huge bandwidths, connection speed for remote access is no longer a problem. Organizations can relax about it and enjoy the benefits of remotely hosted services:

• Simple and low cost implementation for multiple locations;
• Fast deployment;
• Potential cost reduction by paying just the services that you use instead of paying a solution with modules that aren't needed;
• Scalable solutions without user concern. See it in the "cloud";
• No software or hardware to purchase, install or maintain.

Of course there are some disadvantages too:

• Data is not in "your office". This may be the factor that weights most when you're deciding between SaaS or home software. 
• Security vulnerabilities. The advantage of access everywhere increases convenience, but also risk. It means that you can access your data from locations that may be vulnerable.
• Provider downtimes. When SaaS provider goes offline, you can't do anything.
• Potential provider going out of business. 

Well, you always have to consider advantages and disadvantages when picking a solution for your business.

If you're handling a big company with too much legacy systems, business processes and routines, having to manipulate critical data that must be 100% secure, it may be hard to change all your systems guarantees into this paradigm.

In the other side, if you have a small company or starting one that doesn't have too much critical data and low budget for hardware/software, this may be a useful opportunity.