Today’s software systems have undergone a major evolution in how they are delivered to the customer. Customers now have options when it comes to software deployment— on premises or on demand. On demand, or more commonly known as Software as a Service (SaaS), is leveling the playing field by making enterprise software more accessible to organizations that previously could not afford to implement on premises.

So what exactly is SaaS? SaaS is a software delivery model that does not require individual fees for hardware, licensing, support, or administration—just a monthly fee to use the software.

The emergence of SaaS has changed the enterprise software market. Companies now can choose to “rent” their software instead of purchasing and installing it in-house. This provides greater flexibility in how the customer views their enterprise software—many organizations want the same flexibility and scalability of an internally managed solution, but also want to reduce costs. SaaS reduces the costs typically associated with maintaining an enterprise system and helps to maximize cash flow within the organization because there are no up-front software fees—you pay as you go.

There are different options for using SaaS as well as benefits and considerations. This paper will look at the various elements behind SaaS, and the differences between the various SaaS deployment options.