Essay: Software as a Service Technology

Sample Essay

The Software as a Service – SaaS technology uses remote hosting for providing enterprise software solutions to a company. The main ERP or other software required by a company is hosted on a remote location instead of being installed in company office computers and the software is managed by the vendor on its own servers. Hurbean, Danaiata and Hurbean (2008 p.13) state “There’s a good chance that SaaS is right for SMEs, as a future leading delivery mechanism. Although SaaS penetration into this space is slow, there are many reasons for SaaS to prevail.”

SaaS technology has various advantages and disadvantages in comparison with traditional ERP system which include the simplicity of implementation as SaaS based ERP can be deployed with much ease. There is no need of additional hardware for installing ERP software.  SaaS can be implemented  at a much lower cost than traditional ERPs as no additional hardware is required, there is no need of extensive training and no requirement of onsite troubleshooting. The portability and mobility of SaaS is an added advantage as it is based on the internet it can be implemented in all divisions, departments and branches of an organisation with much ease. The two main disadvantages of SaaS include inflexibility and lack of control. SaaS system cannot be customised according to company requirements once it has been implemented. The company does not own the ERP software as it is hosted by the vendor on another location and if the internet experiences any problems the operations of the company may be highly affected (Kimberling 2008).

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