Is SaaS a Threat or Blessing for Software development Industry?

Is SaaS a Threat or Blessing for Software development Industry?

Wednesday, June 02, 2010

Is SaaS a Threat or Blessing for Software development Industry?

The software development industry is buzzing with new name, software as a service (SaaS) . It is a ground breaking concept which allows easy deployment of the software application over the net. Any user can simply log on and avail the service because it follows the pay-as-you-go subscription licensing model

Software as a service promises to change the way software development is done and offered to the client. A conventional software company develops customized application for its particular client. The client is totally dependent on the software company for its needs. SaaS works other way round. Instead of limiting itself to bunch of clients, it offers software development service to vast numbers of web users. The users can log in any time and avail services through internet

This eliminates complete dependency on conventional vendors and end users do not have to pay through their nose for a specific software application. Investing in state-of- the-art infrastructure is a costly business. At same time the corporate houses have to pay fat salaries to their skilled staff. SaaS is a blessing for organizations. A large or small corporation finds software as a service very cost-effective because it offers software development services at click of button. There is no need to invest in manpower and infrastructure. This translates into huge savings and allows organizations to take better care of their core competency, instead of wasting their resources and time on in-house development or buying it at expensive rates from the conventional vendor.

But SaaS faces the challenge of integrating itself seamlessly with end users. It has to find a way around the conventional vendors and extend it services to customers. At same time it should develop the capability to engineer and deliver customized offerings to clients. This is missing right now. SaaS and conventional software vendors can co-exist with each other. It depends on how the end user views their strength and weakness. In the near future the further developments in software oriented architecture will certainly aid in deployment of SaaS on a larger scale. This might push the conventional vendors to offer more specialized software development services and create niche for themselves in industry.