Cloud Computing

What is SaaS (Software as a Service)?


by John Stucky

I get a lot of questions about what the differences are between hosted or on-demand software and on-premise or traditional software. Software as a Service represents applications that are sold on a subscription basis, usually per user and are centrally hosted or deployed in a hosted model. 

A lot of people ask me which one is better: the traditional on-premise for server-based solutions or the SaaS solutions?

Software as a service solutions are going to be sold on a monthly or annual subscription basis, so you're going to pay an amount per user, per month or per year. You don't need any infrastructure or server equipment on your own to run those applications. That's what the SaaS model is. With on-premise or traditional solutions, you usually buy the software one time and install it on your hardware or your infrastructure.

A lot of people ask me which one is better? I don't believe one solution is always better than the other. I believe each of them has its pros and cons. The good news is our Dynamics solution is available in either model, and that's the biggest takeaway I want you to have today. I would not buy software that required me to license it or deploy it in only one of those methods. It's nice to be able to choose between them and change if your requirements change.

There you have it. I hope you found this helpful. If you have any questions or need additional information, please drop us a line or send us an email.

Thanks for watching!


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