What is SaaS?

Software-as-a-service (SaaS) is a web-based, on-demand distribution model where the software is hosted and updated at a central site and does not reside on client computers. SaaS services are billed through subscriptions or usage licenses. A classic example of SaaS for the average consumer is online banking or online tax preparation software. In the business world, Google Apps is a common SaaS offering.

SaaS applications are hosted and run by service providers, saving the end user the upfront investment in software purchases and the ongoing upkeep required with software maintenance and the capital to invest in servers to run them.

Businesses use a pay-as-you-go method (typically monthly) for SaaS applications allowing them to save their capital for core business functions.

Benefits

Improved average revenue per user (ARPU) is a strong benefit behind offering SaaS. As a SaaS provider, you define service plans that appeal to existing and new customers while automating tasks for greater scale of service. The benefits that the SaaS delivery model brings to the end user (individuals, SoHos, SMBs and corporate clients) are the main drivers for companies to change the way they think about software deployment. Some of these benefits include:

• Financial — SaaS is subscribed to and not purchased; instead the end users are offered less costly and more predictable monthly fees, with no capital expense.
• Ease of use — SaaS applications can be easily accessed anywhere the Internet is available through a web browser, thus taking advantage of attributes like usability and innovation of the web.
• Uptime — Server applications are hosted in a highly-available datacenter, minimizing the effects of power outages and Internet outages from incidents that affect local offices.
• Faster Time to Market — Cloud and SaaS services can be brought to market quickly using automation service modules.
• Installation Ease and Low Maintenance — upgrades and patches to latest versions take little time and reduce resource requirements.
• Access Anywhere — customers can connect to their applications any where with a Web connection.

Standards are Critical

Standardization is critical to the success of SaaS. It is essential that ISVs and cloud providers find a standard way to provision, manage and integrate applications and services. Standardization in software packaging allows ISVs to enable their application across different clouds. For this reason, industry leaders, including Parallels, developed the Application Packaging Standard (APS) to simplify delivery and deployment of web-based software applications.

Parallels control panel products link directly to the APS catalog, allowing one-click delivery of many SaaS applications designed to enhance website and server usability. Applications include blogs, ecommerce, customer management, collaboration tools, and more.