Ever wonder how these new business applications work? You don’t install them using a CD like u used to, nor do you go through a different kind of complicated installation process.
Just like apps, plugins, and other sorts of tools, these intricate programs that help you complete big business tasks seem to be one-click wonders.
This might be a new experience for somebody who has been using business technologies for a while now, since 15 years ago, subscriptions were usually avoided when it came to using programs. Not that there was anything faulty with the subscription models back then, but it just wasn’t a widespread practice.
Also, people were much more comfortable buying a finished product and using it. Back then, “updates” still weren’t a thing. Meaning you would by a program and expected to be content with it right off the bat. The next version would come up in a few years, and by then, who knows what your needs would be.
Not to mention the fact that subscription-based usage was not around from the beginning. It would take a few technological advancements to make subscription-based usage possible.
But today, everything is subscription-based. It has become the number one way of doing business, which means that instead of selling a product, your business model should have switched to offering a service.
Cloud computing and SaaS
So what has facilitated this switch? What made us jump from using CDs and installing programs, to monthly and annual subscriptions?
Well, to say it in one word – the internet. To be more precise, it was the cloud computing aspect of internet technology.
Just like the internet, cloud computing is based on multiple computers in multiple locations. The internet is not one computer or one place – it is the joint effort of many servers.
That means that the location of the service and many other details are largely irrelevant to the user. Because when running a program, they can bypass the complexity of owning and maintaining IT infrastructure.
Now, when we are talking about using business software in this manner, we are talking about SaaS. SaaS stands for Software-as-a-Service. And is a distribution model based on third-party provider hosting applications and making them available to customers over the Internet.
SaaS is one of three main categories of cloud computing, the other two being infrastructure as a service or IaaS, and platform as a service or PaaS.
In a nutshell, SaaS means that the provider takes care of hardware, maintenance, licensing, and installation.
This makes it cost-effective and easy to use. So you are basically paying a small fee to the provider to take care of all the baggage.
And the fact that you don’t have to acquire any hardware means that you can use it on a pay-as-you-go model. No big investments are necessary since you are just paying for the service.
The application has a source code that is the same for all customers, so when new features or updates are
This article was written by Matija Cutic and originally published on WP Newsify.