SaaS - The Future of Apps

In this age of WiMax, using the Internet is no longer a privilege but fast becoming a necessity. And different sectors are trying to benefit from this. From Google Analytics to Online gaming, everywhere we see entrepreneurs trying to cash-in on this sudden splurge in the availability of the broadband.
This has spawned a completely new genre of application development, that is entirely web-based, and remotely hosted called SaaS - Software as a Service. While most ERP heavy weights like SAP and Oracle are grappling to top each other in the ERP/CRM space, small players like S-Force and WorkACE are slowly creeping in with their SaaS based models that offer lots of added benefits, and only a few 'manageable' disadvantages.
SaaS in simple terms means the concept of providing a software service to multiple clients from a single platform. The business models based on this concept use remotely hosted applications, made available to customers over a network.
The main advantages of this concept are:

1. Low initial investment from companies because of zero costs related to Licencing, Hardware and Installation.
   The application is hosted remotely so no infrastructure need to be maintained for servers, networking etc.
2. Considerably faster implementation cycle.
   Application can be accessed from all customer sites within days of purchase because just a browser is required to do so.
3. Possibility of easy and frequent upgrades.
   Updates are made centrally by the vendor at the server.
4. Little investment on training of staff.
   Taken care by vendor.

However, the most strong argument which critics point out against this business model is the compromise on security. But SaaS is better equipped to fight potential cyber criminals because they are in a position to implement powerful and multi-layered security blankets because of the ability to leverage the economies of scale. Cyber security is a exorbitant and almost out of hand expenditure for a single company but for vendors providing services to several companies the investment on Firewalls, Anti Phishing and Anti Virus software can be considerably higher.

The SaaS model of new age business applications should act as a moral booster for Indian entrepreneurs looking to set a footing on the same space as that of biggies like Oracle. These applications are quick to roll out, have a low upfront cost, are easily manageable and has easy accessibilty. Because of these reasons, this model would be particularly agreeable to the domestic market, where cost and time factors are paramount.