ENTERPRISE TECHNOLOGY
Software: at your service
Software as a Service (SaaS) enables users to access
software from the web browser of any device connected
to the Internet. Becoming increasingly popular, SaaS is
disrupting the long-established role of Value Added Resellers
(VARs) because solutions are delivered directly by software
vendors. Not surprisingly, this is causing some consternation
in the channel because of fears of being cut out of the chain
and, therefore, losing the ability to remain profitable. But
all is not lost because if they can recognise the threat and
evolve, there are at least four ways the channel can take
advantage of new SaaS opportunities to generate revenue.
By Pippa Sanderson
S
oftware as a Service (SaaS) is
becoming popular for a number of
reasons. It is sold via a subscription
model, with users paying a relatively low
fee every month or year, or as part of a
pay-as-you-go pricing model. As a result,
the upfront costs are small compared to
purchasing a complete suite of traditional
software on a CD-Rom. SaaS also requires
much less maintenance, with updates
and/or patches undertaken by the vendor,
which then pushes them out to users. In
addition, clients don’t have to maintain
the storage infrastructure or servers to
accommodate the applications.
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