What is SaaS Model
SaaS offers an interesting alternative to standard software installation for the traditional business environment. It is like a subscription service where the user just installs the application files which remain available over a network for use. And the user (User+Organization) gets the authorization to use it for a period of time and pay for the software that you are using.Saas became very popular nowadays, as it eliminates the upfront cost of purchase/installation, maintenance, hardware maintenance, and upgrades. SaaS applications can be easily downloaded and maintained.
Benefits of SaaS
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Application service round the clock
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Cost effective, product maintenance, software installation, support and infrastructure are least required by SaaS
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Pay Per Use and Monthly/Yearly Subscription Based
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Rapid Deployment
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Enhanced Teamwork
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Mobility and Scalability GEO-Specific Hosting
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Reduced time to benefit
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Lower costs
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New releases or upgrades
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Easy to use and perform proof of concepts
What is Licensed Model
License is the authorization that grants one user the right to use a software package. It may grant the user the right to install the software on only one machine, or it may authorize installation on any number of machines as long as that same licensee is the only user.
Benefits of License Based Software
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Application service round the clock
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Easier to administer by simplifying software asset management since the licenses reside on a single license server instead of on each individual workstation
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Licenses are available to all workstations connected to the company network maximizing software asset utilization
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License idle time is minimized by sharing
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Cost effective: less licenses are required when a company has many users