The two fundamental characteristics that differentiate a "Software as a Service" or on-demand, standard software, also called on premise, sane:
- it is centralized somewhere, usually a public cloud, but not necessarily.
- payment is made according to usage, or a periodic or per unit consumption value, such as time, transactions, handled amounts (employee numbers, certificates issued, etc.), or any other formula that makes sense.
In general you "buy" more than software, purchase infrastructure and complete support for what you need. No need to worry about hardware, network (to some extent), backup, maintenance, upgrade of the structure, update version, etc.
This is not always true. There are cases where only the monthly payment model or something like that already characterizes a Saas. But there are those who disagree of these cases.
In thesis it is a "pay to use". Pay according to demand and this would make the costs lower. In practice it is common for costs to be higher in the long run, but it depends somewhat on a number of factors.
It is common in web software, but nothing prevents the use of other forms. It is common to need a client, mobile or desktop to access the main software.
There are often gains from sharing the resources used (even people) among all users. But there’s a cost to trying to make everything work, for everyone, in the same environment. It can even be more complicated or charge a cost of lack of flexibility offered.
There are those who complain of lack of control, security and convenience. It is not easy to identify how much is a good solution.
It also sells the idea that it’s more predictable that way. In practice whenever the supplier has additional, unforeseen costs, he ends up passing it on to the customer. What can happen is to have fewer unforeseen costs from the supplier’s experience, but that is not guaranteed. Depending on the model adopted the cost can be much less predictable. And when it’s predictable, you end up charging the maximum you’d spend, the worst case, which is no advantage at all.
This is a way to improve the industry’s revenue, so much so that after it, the revenues of many companies in the industry, from cloud vendors, as well as the products that were previously sold without this model, including basic and specific software, exploded. If the industry is earning so much more then they have not offered less costs as promised. This occurred just when the current (old now) billing model was showing saturation. Some people will say that it is selling more software than before. I have not seen clear evidence that this is.
It’s a way for industry to fight piracy.
Anyway, it has advantages, but it also brings disadvantages and I will not list all because it is not the focus of the question.
He has brothers: Iaas, Paas, Daas, Mbaas, among others.
When I hit my eye on the question I read Sass , Anyway, great question, I will be following, I also have this doubt
– MarceloBoni
Not to be confused with [tag:]
– Wallace Maxters