Software as a service (SaaS) is a software delivery model that has grown in popularity and is now a recognised component of a corporate digital communications and ICT strategy.
SaaS is really a by-product of development and growth driving the local telecommunications and ICT markets. Providers of services outsourced by businesses are now forced to bring to the party a more rounded, solid offering - there is simply no longer any room for traditional means of outsourced services.
The fact that the old 'bodyshop' approach no longer adds any real value is not really news. This approach is loosely defined as service providers simply completing projects and managing environments without any specific outcomes.
This particular way of conducting business has always had a limited shelf-life. In retrospect, it was simply a matter of time before innovation in communications technology allowed for a more practical, effective and logical step in next-generation business software and system integration.
The market, generally, is a lot more appreciative of the fact that a service provider's role has changed. It is not that of a traditional vendor, but actually a partner to its business. Now they host applications on their networks and make them available for clients to use.
The question is: where is this business-building commercial trend taking corporate SA and will companies be able to organise themselves to leverage off the opportunities?
Mindset change
SaaS is not a new idea. It was tried and tested locally a few years ago but never really managed to take root.
Robert Sussman, founder and MD of Integr8 IT
One of the main benefits associated with SaaS is that mission-critical resources like bandwidth, broadband and multimedia applications are generally more affordable and accessible.
The situation is conducive to further growth and development of companies, in particular the ability to make use of communications infrastructure.
This will have a huge influence and impact in the future. For example, it will play a far greater role in helping to roll-out potential innovations such as a second version of the Internet, or Internet II.
SaaS represents a change in mindset of decision-makers as far as technology investment is concerned.
There is a clear understanding that it no longer makes financial or business sense to physically buy software, purchase licences, integrate systems and then call in the expertise of a service provider to manage the environment.
It has become essential to move away from the traditional model and give way to utility-based computing. To put it simply, it is obvious that a 'pipe' to the Internet is a must, but the market places more emphasis on the level of services gained as a result of the pipe.
Key to survival
Businesses need access to general data centre and telecommunications services to survive. They must be in a position to leverage off advanced communications infrastructure such as hosted e-mail messaging and call centre platforms, for example.
Interestingly enough, SaaS is not a new idea. It was tried and tested locally a few years ago but never really managed to take root. The timing was simply not right, clearly evident in the reluctance of businesses to 'take the leap of faith'.
The proliferation of mobile solutions, advanced multimedia and multifunctional applications and the need to keep up technologically requires a different approach.
As more organisations engage in SaaS, service providers will be compelled to focus on securing more business opportunities.
The platforms and applications are available to clients and customers want to partner with reliable, service-oriented providers that can ensure maximum value.
It is really a new economy we are talking about. This is the direction in which the modern enterprise is moving and this will be the key driving force behind ongoing technology adoption and levels of innovation.
Perhaps more so than ever before, the bottom line in business will be significantly influenced by whether decision-makers are astute about the SaaS concept.
Early adoption and engagement with the market will definitely give corporations the edge.
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