Much has been written this year about the emerging role of software as a service (SaaS). The term itself has had many definitions. SaaS is far more then a simple evolution of the ASP application service provider) model that first emerged in late 1990‘s of providing web based software applications though the internet.  Below I list some of the several key defining attributes of SaaS that create the unique value proposition that positions SaaS as the next major wave of value in software solutions.  

•  On Demand 
•  Hosting and Deployment
•  Services
•  Solutions
•  Co-sourcing

Today I want to talk a bit about the On Demand component from a non-technical perspective. An On Demand solution must provide for key characteristics that support today’s global, extended business enterprise: immediacy, lower cost of entry, and a supporting go to market provider business model.

Business change is constant and rapid and On Demand solutions must be built to quickly and easily adapt to this pace. This means the must be easy to use and rapid to deploy. Consumers of the service must be able to log on from anywhere with just a web browser and get access to the information they need to get their job done.  For today’s global extended enterprise, On Demand means an immediate ability to bring in new users of the service for quick business action. There can be no big hurdles in adding users, signing up, or even end user training. It must be easy, relevant, and quick.

On Demand also means an organization can get up and running quickly with a service, prove the value proposition, and expand as they need to. No longer are you burdened with lengthy evaluation and RFP cycles…you can validate with immediate use with a lower initial cost and invest in expansion based on the return of value to your business.

This also means that provides of On Demand offerings must have sales, support, and services infrastructure for this land and expand go to market approach. Burdensome outside sales reps hunting for million dollar sales are out. In are sales teams that are more virtual, adaptive, and compensated based on a customer’s success as evidenced by growth and retention.

With and On demand approach, the consumer and the provider become aligned and this becomes a key cornerstone to the evolution of Software becoming a true service.

Next time I will discuss Hosting and Deployment Options and how they support SaaS.