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Software as s Service (SAAS)

Software as a Service (SaaS) has the potential to transform the way information-technology (IT) departments relate to and even think about their role as providers of computing services to the rest of the enterprise. The emergence of SaaS as an effective software-delivery mechanism creates an opportunity for IT departments to change their focus from deploying and supporting applications to managing the services that those applications provide. A successful service-centric IT, in turn, directly produces more value for the business by providing services that draw from both internal and external sources and align closely with business goals.

Traditionally, deploying large-scale business-critical software systems, such as ERP and CRM application suites, has been a major undertaking. Deploying these systems across a large enterprise can cost hundreds of thousands of dollars in upfront licensing cost, and usually requires an army of IT personnel and consultants to customize and integrate it with the organization's other systems and data. The time, staff, and budget requirements of a deployment of this magnitude represent a significant risk for an organization of any size, and often puts such software out of the reach of smaller organizations that would otherwise be able to derive from it a great deal of utility.

The on-demand delivery model changes some of these SaaS applications don't require the deployment of a large infrastructure at the client's location, which eliminates or drastically reduces the upfront commitment of resources. With no significant initial investment to amortize, an enterprise that deploys a SaaS application that turns out to produce disappointing results can walk away and pursue a different direction, without having to abandon an expensive on-premise infrastructure.

Additionally, if custom integration is not required, SaaS applications can be planned and executed with minimal effort and roll-out activities, creating one of the shortest time-to-value intervals possible for a major IT investment. This has also made it possible for a number of SaaS vendors to offer risk-free (and often literally free) "test drives" of their software for a limited period, such as 30 days. Giving prospective customers a chance to try the software before they buy it helps eliminate much of the risk surrounding software purchase.

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