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About SaaS
Software as a Service (SaaS) is an emerging and high growth market estimated in 2008 to be a $10 billion dollar market growing at 25% a year (source: IDC). Salesforce.com (CRM) and WebEx (web conferencing) are examples of market leaders in the SaaS space. The primary difference between SaaS and traditional software is that the software is delivered and consumed on a subscription basis, on demand, over the Internet, rather than run locally and is priced on a per-user basis.
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| TRADITIONAL SOFTWARE |
SOFTWARE as a SRVICE (SaaS) |
| Capital expense |
Operating expense |
| Higher upfront cost |
Lower upfront cost |
| Standard time to value |
Faster time to value |
| Complex deployment |
Easy deployment |
| Difficult maintenance |
No maintenance |
| High risk |
Low risk |