SaaS as a concept has worked successfully for individual centered applications but not business centered applications. There are both technology related and business related reasons for this. While SaaS applications like e-mail, office suites, etc have taken off quite well, business related SaaS applications like CRM (Customer Relationship Management) software, sales force automation software, payroll applications, procurement, logistics software have only started gaining traction now.
- New software design and delivery models allow multiple instances of an application to run at once
- Internet bandwidth costs have dropped significantly to allow companies to buy the connectivity necessary to allow the remotely hosted applications to run smoothly
- Media rich AJAX based UIs that do not go for a full page refresh when you click on a button.
- Delayed deployments and high Total Cost of Ownership are forcing CIOs to look away from the traditional software delivery format.
- Business customers are frustrated with endless cycles of buying software licenses, paying for maintenance contracts, unresponsive helplines, costly upgrades, etc.
- Pay-as-you-go benefits
- Easy add ons
- Easy ability to switch vendors if current vendor is unresponsive to business problems
- No software maintenance headaches