SaaS or Software as a Service is a growing trend for the purchase of software. SaaS software delivery model provides a monthly user fee for the use of the software license by the end customer or enterprise. Previously traditional models involved the outright purchase of the software license prior to usage.

SaaS software traditionally resides in the cloud or on-demand and involves no end user setup or installation. SaaS software is also typically managed by the ISV (Independent Software Vendor).

The SaaS delivery model provides significant advantages over the traditional upfront license model including:

• SaaS offers little or no up-front costs
• SaaS offers minimal infrastructure/support costs
• SaaS quickly and easily scales
• SaaS provides “No lock in” to particular Software Vendor resulting in I.T. departments feeling more power and comfort in quick purchase
• SaaS provides Data Security and disaster recovery by supporting the external hosting of application s data; and

  SaaS facilitates simple software upgrades as it can be done by the ISV centrally on the hosted environment alleviating the need for major upgrades, outages or project management