The Information Technology (IT) Vocabulary Builder series aims to deliver a very concise summary of a currently relevant topic to Information Professionals.  It is done mostly by collecting a small number of highly relevant web links to save you the time of combing through search results yourself.  It differs from sites such as Wikipedia because it includes opinions, forecasts, and detractions in addition to just facts.

Software as a Service (SaaS) is a business decision that substitutes an ownership model for a leasing model when it comes to software.  It avoids the need to sink large up front sums of capital into software licenses and instead provides a way to pay as you go based upon time and capacity.

The Wikipedia site is an excellent introduction to the topic.This is how Wikipedia defines SaaS:

“Software as a Service (SaaS , typically pronounced ‘sass’) is a model of software deployment whereby a provider licenses an application to customers for use as a service on demand. SaaS software vendors may host the application on their own web servers or download the application to the consumer device, disabling it after use or after the on-demand contract expires. The on-demand function may be handled internally to share licenses within a firm or by a third-party application service provider (ASP) sharing licenses between firms.”

The following two sites contain more information on the topic with a positive bent.

  1. The Software As A Service Group’s site . SaaS is Improving Human Productivity
  2. Microsoft’s SaaS Site .  SaaS  is a way to simplify deployment and reduce customer acquisition costs.

The following two sites contain more information on the topic with a cautious angle.

  1. Business Week: Beware the Hype for Software as a Service .  Business Week takes issue with SaaS producing cost savings over the long haul.
  2. CIO.com: The Truth About Software as a Service (SaaS) . The term SaaS is often abused by vendors who are just selling online tools.

Take Away: Software as a Service (SaaS) is an intersection point between the business and technology parts of the Information Professionals’ concerns.  Understanding when, where, and why to employ and not employ SaaS should be a core competency of any IT Manager.  Escalating software license costs as well as falling IT staff sizes will probably contribute to making this option more common in the near future.  This will drive IT Department, non-personnel operating costs up.

Have you employed Software as a Service in your organization?  Any lessons learned?  Do you have suggestions on other IT Vocabulary Builders?

That is my Information Technology Thought of the Day (ITTOD) for June 2, 2009 ©Scott Coughlin .

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