Choosing your SaaS

If you are unfamiliar with the business model known as Software as a Service (SaaS) or Software On Demand, it refers to software that is deployed over the Internet (and sometimes behind a firewall on a local area network or PC). Customers gain licenses by purchasing the SaaS on demand, buying a subscription, or paying as they go. Many new SaaS providers offer license at no charge. The concept has a lot in common with cloud computing, and as such we can expect to see a lot of it in the future as “the cloud” continues to gain popularity. The Seattle startup company Warhead is releasing an all-in-one e-Commerce platform that will allow organizations to literally build their business from the ground up on an online platform. One Warhead representative states, “Just as Google revolutionized the way we search the Internet, Warhead aims to change the way individuals buy and sell online.”SaaS options come with a number of benefits. They are cheaper than other options, since there are no costs associated with purchasing servers or supporting software. In many cases, whatever costs there are can be spread out over monthly payments. SaaS applications are also easy to get started (with deployment times in hours instead of weeks and/or months). The best SaaS service allow for scalability as your company grows over time.However, there are valid reasons for businesses to be cautious of using software where data is stored and controlled on third-party servers. For each SaaS relationship, the company must connect part of their network infrastructure. Identifying services are not always well-integrated with some cloud providers, making it not easy, but at least easier for third-parties to potentially access data. Google and Salesforce are two companies offering encrypted connections between the company and the application. These connections also allow the business to choose which employees can access which resources.Integrating SaaS into your business is not yet a necessity, but it could become one as more businesses move into the cloud arena. A good way to minimize security risks is simply to keep the number of SaaS applications that you use down. Another option is SaaS Data Escrow, in which a copy of critical application data is kept with an independent third party. This helps to protect against data loss, service outages, and even bankruptcy of the SaaS provider.