Service model - Software as a Service (SaaS)

In the software-as-a-service model, the cloud computing provider provides you as a customer with software and the necessary IT infrastructure. In turn, you can offer services to your customers. In addition to common software packages such as Office365, you can also provide your own software applications. Users access the cloud-based software either via the browser or via a previously installed programme that represents an interface to the cloud.

Advantages

The cloud computing provider usually takes care of the entire IT infrastructure, maintenance work and software updates. You can therefore concentrate fully on your core competencies and value creation. A pay-per-use model usually prevails, whereby the user only has to pay a usage fee for the respective use of the software. The advantage for the user is that he no longer has to conclude software licences with maintenance contracts and there are no follow-up costs for updates, etc. The investment risk is thus considerably reduced. The investment risk is thus considerably reduced. Only the actual use of the software is paid for.

Disadvantages

If the service provider does not offer offline functionalities that update the content at the next internet connection, the user is dependent on a stable internet connection. So far, IT companies still have acceptance problems with the service model, as data remains on the servers of the service providers. However, the German Federal Office for Information Security audits and certifies SaaS providers according to the ISO 27001 standard for data centres, so look for the relevant certifications when choosing a provider. Furthermore, the service recipient is dependent on the service provider. A possible insolvency of the service provider can therefore endanger the business of the service recipient.