The basic concept of SaaS (software as a service) is simple: companies can use software functions on demand, over the Internet, using only a web browser - and paying only a monthly subscription rate. New features and functions are added to the software on a daily basis, with no interruption in service.

In the old-fashioned "on-premises" software model, companies are required to purchase hardware and software and go through a complex deployment and implementation project; not with SaaS! Companies are no longer burdened with the time-consuming and costly tasks of managing an enterprise-class application infrastructure: no more backups, no more patches, no more software upgrades, no more purchases of additional disk space and CPU power. The SaaS provider takes care of all hardware and software maintenance issues, freeing a company's IT personnel to focus on high-value business process functions.

This relatively simple concept has fundamentally changed the software industry, and has far-reaching implications for the relationship between companies and providers, and between IT groups and their organizations.

Most discussions of SaaS focus on the immediate, short-term benefits: reduced up-front cash outlay, reduced burden on the IT department, and for small and mid-size companies, gaining access to a sophisticated software application that they might have been able to afford otherwise.

However, the REAL advantages of SaaS are only apparent when taking the long view:

• Never have to suffer through an upgrade project again. (Yes, never.) Instead, ALL users are ALWAYS on the most current version of the software.
• New features and functions are rolled out on a nearly continuous basis, and are available to existing users immediately.
• Enjoy a positive, long-term relationship with your software provider. The interdependence of users, software developers, and partners in the SaaS economy means that all parties participate as part of a functional community with common goals: world-class uptime, continuously enhanced functionality, and a stable platform.
• "Customizations" don't exist; instead, requests for new feature can be immediately written into the core software, and thus are never obsoleted with an upgrade.
• Unlimited storage space and CPU power are available to users at no additional charge.
• No upgrades and maintenance required on the desktop, either; Plex Online's "zero footprint" model means that the system can be accessed from any web-connected PC, anywhere in the world.

Virtually every software company in the market today is offering some type of service and calling it SaaS. However, a closer look at these offerings demonstrate that they do not offer the same advantages of a multi-tenant SaaS solution - and in many cases, have some of the same disadvantages of the legacy on-premises model.

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