What is SaaS ?
SaaS is an acronym for Software as a Service. Our Yahoo mail, Gmail, Rediff mail is a classic example for SaaS model. Single server, single application, single database and multiple users.
Is SaaS new?
It is not. SaaS was earlier called as hosted services and later called as ASP (Application Service provider)
In what way SaaS is different from Hosted services and ASP model?
In hosted and ASP model each company used to outsource its server and data maintenance to a 3rd party company. This model was not very successful because of:
no much cost advantage as the server was kept with in the IT company
Each server for each customer
There were issues related to data security and Internet bandwidth
Limitation on maintaining the service levels.
But in the SaaS model:
The server has been collocated in a reputed data center
Data center has security certification for data protection
Data centers has in built access permissions
Proper Fire walls, Antivirus with regular updates.
Adequate internet bandwidth as well as bandwidth from 2 or 3 providers
Power backups and generators
Physical security systems
Proper air-conditioning for the server rooms
Multiple customers data in a single server with access rights
Regular data backup and mirrored server from a different location in case of disaster.
Trained professional closely monitoring on 24 X 7 basis.
Advantage for the Customers:
No capital Investment on Server and ERP software
Pay on a monthly basis
No System Administration
No Maintenance or backup of database
Obsolescence of Hardware and software
Access from any where with stable internet connection.
Access even through data-chord for remote location in case of lack of Broadband.
Security
24 X 7 support
SMEs can outsource IT management and focus on their core business
Is my data safe?
Our E-Mail do have sensitive information. But, we do not know where the server is and also do not know whether any one else access the data.
Statistics shows that the data thefts are more by the employees rather than any outsiders (please don’t read me wrong)
We do see in some of the cases that the House thefts are done by the maid servants and drivers. (please don’t read me wrong)
Gold is safer in the Bank rather than one’s house.
Cash out side the bank, on the main road, 24 hrs may not be safe, but ATM’s are reality.
Considering the speed of growth of business, in the SaaS model small companies can have the advantage of the big companies at a lesser cost.
Conclusion
ERP on SaaS model is a boon for SMEs. SaaS model has come to stay. Several large companies have out-sourced their IT infrastructure and maintenance in this model.