FAQ for Software-as-a-Service (SaaS)
Q1: What is Software-as-a-Service?
Q2: What are the applications where SaaS is available?
Q4: What are the disadvantages?
Q5: Are there any SaaS available in Singapore?
Q6: Is SaaS only meant for SMEs?
Q7: Can enterprises benefit from SaaS?
Q8: What is the difference between SaaS and ASP?
Q9: How is SaaS related to Grid Computing?
Q10: How is SaaS related to Cloud Computing?
1. What is Software-as-a-Service?
Software-as-a-service is a model of software deployment where the application is hosted as a service to the customer instead of the customer owning and hosting the application on his own system.
SaaS is a software distribution model in which applications are hosted by a vendor or service provider and made available to customers over a network, typically the Internet.
2. What are the applications where SaaS is available?
The SaaS applications include:
a) Accounting/Financial
b) Anti-virus software
c) Asset Management
d) Business Intelligence
e) Business Process Management
f) Call Centre
g) Collaboration
h) Content Management
i) Customer Relationship Management (CRM)
j) E-Commerce
k) E-mail (e.g. Gmail)
l) E-Learning
m) Enterprise Resource Planning (ERP)
n) Human Resource Management (HRM)
o) Knowledge Management
p) Manufacturing Solutions
q) Product Life Cycle Management
r) Project Management
s) Sales Force Automation
t) Service Desk Management
u) Supply Chain Management (SCM)
v) Transportation & Logistic Management
w) Video Conferencing
x) Work Order Management
y) Web-based Conferencing
z) Web Content management
aa) Workforce/Field Service Management
The advantages include:
a) Low cost but high valued solutions, i.e., it does not cost much for an organization to start using SaaS;
b) SaaS offers a pay as you go model (or ability to pay for capabilities);
c) A user does not have to invest in hardware and servers for hosting and running the applications;
d) Adding new users can be done easily;
e) Scalability enables users to test the reliability and performance of applications in limited deployment before expanding their adoption incrementally;
f) Does not pay for software features and functionalities that are not useful or needed;
g) Removes the hassles and unexpected costs that accompany deploying and maintaining a variety of traditional applications; and
h) Eases the workload of IT staff.
4. What are the disadvantages?
Disadvantages include:
a) Perceived loss of control of software and data to a third party.
b) Lock-in of data when a service provider goes out of business or when migrating to another service provider.
5. Are there any SaaS available in Singapore?
Please refer to the SaaS page for the list of SaaS available from GSPs.
6. Is SaaS only meant for SMEs?
Both SMEs and enterprises can benefit from SaaS.
7. Can enterprises benefit from SaaS?
Yes. Enterprises can also make use of available SaaS to lower their expenditure on hardware and instead use SaaS for their operations.
8. What is the difference between SaaS and ASP?
ASPs hosted applications from other companies and then licensed it to end users. ASPs generally had limited customization potential as they deployed applications that are developed by someone else.
The ASPs did not change the architecture of their applications; they merely provided legacy applications to user organizations. The up-front and ongoing costs of hosting legacy applications were quite hefty. During the ASP days, a very small segment of the market was willing to outsource their application needs to relatively untested outfits because most companies during the dot-com era felt that their IT operations and business applications were a strategic asset. Corporations today consider operating IT functions and business applications as commodities and not central to the organisation’s competencies.
SaaS is built from the ground up to service many customers from the start, very much unlike the ASPs.
9. How is SaaS related to Grid Computing?
SaaS applications need a hosting platform to which they can be hosted. Grid computing can provide the underlying architecture so that compute resources can be provisioned easily and flexibly for the hosted applications. This way the user does not have to invest large amounts of money in infrastructure, which may often be underutilized.
10. How is SaaS related to Cloud Computing?
SaaS are often hosted on a Cloud via a web interface.
11. I am an Independent Software Vendor (ISV). How do I edit or add new SaaS information on this IRM website?
Please refer to the user guide for more information.