Potential of SaaS Model

What is SaaS Model?

Software as a service sometimes referred to as "on-demand software", is a software delivery model in which software and associated data are centrally hosted on the cloud. SaaS is typically accessed by users using a thin client via a web browser.

So what are the features of SaaS :

• Designed from the outset up for delivery as Internet-based services.
• Designed to run thousands of different customers on a single code .
  Frequent, "digestible" upgrades every 3-6 months to minimize customer disruption and enhance satisfaction.
• Fixing a problem for one customer fixes it for everyone.
• May use open APIs and Web services to facilitate integration, but each customer must typically
   pay for one-off integration work.
• Pricing
   subscription fee(monthly fee or an annual fee).
  some usage parameters, such as the number of users ("seats") using the application
  charge per transaction, event, or other unit of value.

Categories:

• Accounting
• Collaboration
• Customer relationship management (CRM)
• Management information systems (MIS)
• Enterprise resource planning (ERP)
• Invoicing
• Human resource management (HRM
• Content management (CM)
• Service desk management

Who all are Saas  Providers?
Google:gmail.com, Google docs
Salesforce.com – Millions of user
Siebel On-demand application
Microsoft SharePoint Online, Microsoft Exchange Online 


And SaaS challenges are :

•  Switching Cost
•  Limited flexibility
•  security and privacy