Cloud computing – Pros and Cons of Software as a Service (SaaS)



Cloud computing – Pros and Cons of Software as a Service (SaaS)

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Pros
The use of software solutions as a service (SaaS) allows for better control of technical specifications. Outsourcing of all the technical solutions keeps costs fixed, usually based on the number of people using the SaaS solution. The price per user includes the cost of software licenses, maintenance and infrastructure. A company can choose between using Saas on one hand, and acquisition oflicenses and in-house deployment, on the other hand.
The benefits of SaaS include financial impact. The total cost of acquisition and maintenance of the solution (TCO, total cost of ownership) are usually spent in capital (CAPEX, excluding maintenance).
A clear advantage for businesses is the speed of deployment. SaaS solutions are already pre-existing deployment time is extremely low.
Another advantage would be to reduce power consumption by allowing the pooling of resources shared by several companies as well as the use of a low power computer with a Web browser without other licenses associated with servers.
Cons
During the implementation of SaaS solutions, data on the client company are generally stored on the servers of the service provider providing the solution. When it comes to sensitive or confidential data, the company is obliged to make contractual arrangements with the supplier.
The relocation of SaaS solution servers allows mobile access to corporate data. This access leads to a concern for privacy of information when staff departs.
It is also important to adapt the Plan Business Continuity for integrating SaaS solutions as well as provide various scenarios in case of problems with theprovider of the SaaS solution.
IT migration can be complicated since we switch the data platform provider to that of another, with various associated problems (compatibility, look for the client, etc..). Under the SaaS, the customer is bound to his supplier.
The same service requires the operation of two computers (client / service) instead of one. This can increase power consumption, especially when a client-intensive and non-shared server machine is used. There is also a third player, the internet service provider (ISP), because it is he who provides the communication between the client and the service provider.
So any  offline interruptions are equal to the total shutdown of the activity of the company, hence the need to provide redundant lines with a fixed minimum rate provided by the network provider.
Types of providers
There are typically four types of enterprise ASP:
The specialist or functional ASP: provides a single application, such as the payment process by credit card;
The vertical ASP provides a solution as a package for a specific type of customers
The ASP business: provides a full spectrum of solutions;
Local ASP provides services to SMEs in a limited geographical area.
Examples of suppliers
The leading provider of SaaS solutions were startups of the internet, “young” innovative companies like Yahoo & Google (Webmail) or Amazon B2C.
Companies like Salesforce (CRM on demand) and Google (Google Apps) have adapted this type of offer professional B2B world. For a number of them based on the offer of Amazon EC2 Cloud Computing.

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