To continue on from my team members post on how information systems gain competitive advantage in an organisation, I am looking into another trend in information systems.
I am looking into ‘Software as a Service’. Firstly to explain cloud computing, it is the use of computing resources like hardware and software that are delivered as a service over a network, typically the internet. The illustration below helps to understand the concept.
In the SaaS model, cloud providers install and operate application software in the cloud and cloud users access the software from cloud clients. There are many benefits of SaaS. The main focus of SaaS is to ensure customer success. It is a very secure system to use. The client has complete control of SaaS, however the client is not running the cloud infrastructure and platform on which the application is running.
It is known as a version-less software and its always up to date. It also allows for easy configuration.
Another benefit of this application is its scalability. SaaS infrastructures scale rapidly with the vendor, which adds relatively inexpensive storage. This results in your organisation not having to worry about buying or maintaining hardware or server space. To accommodate a large number of cloud users,any machine serves more than one cloud user organization.
Examples of SaaS include Google Apps and Microsoft Office 365.
Global sales are continually rising and forecasts sales for 2015 will hit $22.1 billion in total.