SaaS Sets the Stage for Cloud Computing
Date : 17 Jul 2008 Category : Technology
NewsFactor NetworkIn just a few years, Software as a Service (SaaS) has moved rapidly beyond its initial point-solution "outsourced application function" phase to become an important source of broadbased business functionality and competitive advantage.
SaaS is now found in all aspects of business and information technology (IT), including an increasingly important presence and role in business-critical systems and operations.
But, due in large part to its relative newness and varied forms, SaaS is also miscast and misunderstood, especially when we consider its roles and benefits to the enterprise, and to finance organizations.
In what follows, we'll examine SaaS' true nature to the organization, focusing on its and management requirements for finance, and to the executives responsible for enterprise financial strategy, planning, management and value.
A Short History: SaaS and the 'Cloud'
Business IT functionality has been offered as a service for decades in many simple forms, from payroll services to time-sharing of mainframe computing power. What makes SaaS different, and more compelling, today are a series of IT technological improvements that facilitate shared access by thousands of organizations, with use of a wider range of more sophisticated, and increasingly customized, business and IT capabilities.
Evolution of SaaS
A core improvement has been the shift by leading SaaS providers to a multi-tenant software architecture. In a multi-tenant architecture, customers leverage a common infrastructure and application schema. Customers can configure applications, with the data partitioned in a completely secure manner.
Multi-tenancy enables cost-effective delivery and use of applications, potentially, by multiple thousands of users simultaneously. This overcomes issues of scale, security and customization that limited the growth and use...