Unlike in-house software, SaaS is usually procured in a subscription model and has a number of benefits like lower up-front costs, no on-site infrastructure, predictable subscription fees, generally better scalability and SaaS can bring more advanced applications to small businesses.
SaaS does not replace all forms of in-house software, but its popularity is testament to the fact that it can be used for the majority of business applications.
No on-site infrastructure
As the name implies, SaaS is software delivered as a service over the Internet. As SaaS provider like Linuxpeak builds up the infrastructure to deliver the application and the customer subscribes to it, typically through a Web browser.Reliable and scalable
With the SaaS provider concentrating on application delivery and support, the reliability and scalability is generally better than an application managed in-house. This is not to say in-house applicaitons aren't reliable, they are, but statistically a dedicated SaaS practice is likely to provide a higher uptime and better continuity of service during a peak load. At Linuxpeak we ensure all our applications are reliable and scalable, free from the burden of under-capacity.Simple procurement
SaaS has another distinct advantage over traditional "perpetual licence" software - it's easy to acquire. Instead of requiring a complex evalutation, installation and testing process, SaaS allows organisations to trial and subscribe to applications without disrupting their internal operations. There are also lower (if any) "set up" or installation fees with SaaS because it is a subscription model. Ask Linuxpeak to help compare the costs of in-house versus SaaS for your organisation.Is your application suitable?
As mentioned, SaaS should not attempt to replace all types of in-house software, but rather complement an organisation's existing software assets. Applications that require a large amount of CPU-intensive processing and large displays like graphic design and video editing are generally not suited to the SaaS model. Hopefully on day networks will be fast enough to support such applications, but for now SaaS is best suited to business information processing and management. Applications that lend themselves to the SaaS model are:- Messaging, e-mail and groupware
- Web-based applications
- Accounting and CRM
- Collaboration and project management
- Social networking



