Is SaaS just Hype or Reality?

According to Gartner, the software-as-a-service (SaaS) market, which was $6.3 billion in 2006, would become $19.3 billion by year-end 2011. Moreover, as per the research carried out by Global Industry Analysts, SaaS market is worth $146.5 billion by 2015. Are these figures reality or just hype? Let's substantiate it.

Like any other new concept, SaaS was also not received with open arms. SaaS was termed as an exaggerated concept that wouldn't stand the test of time, an inflated bubble that would burst with a single prick. Critics denounced it as something irrelevant and unrealistic. The major allegations that were leveled against it were:


Since SaaS services are provided on a monthly subscription basis, the subscribers lose track of the money spent and in most cases the expenses exceed the cost of on-premise ones.

Higher Upfront Costs

SaaS doesn't lower hardware investment instead it increases overhead costs in the form of up-to-date computers, internal security and firewall solutions, and so on.

Slower Deployment

SaaS is not easy to set up, as there are issues that complicate its deployment such as customization and integration.

Security Concerns

SaaS is accessed via a web browser, which makes it a potential candidate for being a less secure technology.

These allegations were made at a time when SaaS was relatively new and not many people were familiar with this new concept. However, today the situation is different and therefore any fresh allegations would be uncalled for since not only did SaaS stand the test of time but it also proved that all the arguments against it are baseless and unfounded.

The advent of economic recession resulted in the mass adoption of SaaS as it was the most cost effective option that offered 24/7 accessibility, easy customization and integration features. This eventually resulted in people realizing its immense benefits.

Benefits of SaaS

Cost Effective

Though SaaS services are provided on a monthly subscription basis, the customers would be charged only for the services that they use.

No Upfront Costs

SaaS means no installation, no upgradation, no maintenance and no headaches regarding performance; everything is the responsibility of the SaaS provider.

Reduced TCO

Since SaaS can be deployed faster and is very easy to use; it considerably reduces the TCO (total cost of ownership).

Faster ROI

SaaS enhances ROI as it lowers hardware and software investment.

Data Security

Data is insecure everywhere be it your home computer or third party vendors. The only feasible solution is to adopt stringent measures to minimize the risk.

Non-Platform Specific

As long as there is no issue in accessing the internet, different platforms is not a matter of concern for SaaS.

These advantages were experienced not just by large organizations but small and medium businesses too realized their goals with SaaS. SaaS which was our future until recently is our present now. This itself substantiates the fact that the figures given at the beginning of the article are not exaggeration but soon to become reality.
Cloud Computing SaaS