Software as a Service is a method in which the software is delivered to the users through the internet and users acquire the rights to use particular software by paying a monthly fee rather than purchasing the software.
The idea of using software as a service first evolved in the late 1990s in order to allow for the sharing of end user licenses which reduced the costs and server demands shifted from the company to the software provider. Term Software as a service first appeared in an article called “Strategic Backgrounder: Software as a Service.” It was published by the Software & Information Industry’s (SIIA) e Business Division in February 2001. First application of the SaaS was SiteEasy, launched in 1998 at Siteeasy.com and it is developed by Web Transit, it was sold on the subscription basis to its customers. SiteEasy provided small-businesses with the software to develop their own websites.
Loud cloud was one of the first to attempt to commercialize Software as a Service and it was founded by Marc Andreessen in 1999. This technology was also called as APS or Application Service Providers. Later its name changed to Opsware after selling the operations side of the business to EDS in 2002.
These above companies are now not popular, but the concept of SaaS has gained much popularity. A vast majority of today’s application software providers offer their solutions as SaaS. This shows how much SaaS as a concept has grown over time. A lot of new technologies have come-up and several have faded away, but the business model of SaaS has withstood the test of time.
Software is ever changing and the software programs are frequently being adapted and upgraded to improve functionality and usefulness. Software as a service allows users to upgrade their software more frequently and in turn helping them to use up to date technologies. SaaS along with its reduced installation costs and risks, is positioned to be the leading method of software licensing as the internet is growing.