Cloud Computing: Software as a Service (SaaS)

Pros and Cons of Software as a Service


I have been receiving recently, a lot of proposal about ERP system and some of them is bundled with software in a cloud or in other words Software as a Service (SaaS). Today, I would like to share my insight about this model of cloud computing (SaaS) based on the proposal I’ve gathered and how I think will  benefits our company (Going Straight Salon, Inc.).

What is Software as a Service (SaaS)?


By the way, let me explain first what is Software as a Service. Software as a service aka SaaS is a software service solutions that run on the cloud technology or in the internet. One good examples are, Google’s Google Docs in which they offer desktop office solution that is residing in the internet. Another example is a payroll system in a cloud offered by Intuit (the company behind the  ERP System Quickbooks)- where as you can process your payroll anywhere as long their is an internet access.

The Benefits of Saas

The same with any cloud computing model, SaaS – Software as a Service delivers the following benefits:

1. It lowers TCO or Total Cost of Ownership
2. It help business owner concentrate on the core of the business.
3. You have a proven business process model.
4. You’re only spending on what you need.
5. It turns your CAPEX (Capital Expenditures) into OPEX (Operational Expenditures).

The Cons

1. Internet Connection Dependent – the performance of the software is affected by your internet connections.
2. Like any package softwares, one of its disadvantages is its flexibility. Businesses has a unique business process, any additional features will require additional cost.

Bottomline, Software as a Service has great benefits, specially in savings. But we should also take to consider the SaaS provider, it’s security, reliability and customer support or post-sale service.

So what do you think? Is SaaS for you or your company?

Jhong Medina

Hi, I'm Jhong Medina, I'm just your friendly neighborhood tech blogger :). Hope you can join the discussion by sharing your ideas below. Thank you for visiting.

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1 thought on “Cloud Computing: Software as a Service (SaaS)”

  1. Neat article! Aside from those benefits you have mentioned above, here are some other SaaS benefits: Rapid implementation, affordability, flexibility and scalability, and ease of use. However in order to obtain those, of course, you have to choose a SaaS provider that meets the criteria you are looking for for a SaaS provider. I have once read this passage on an article: “SaaS solution is intimately entwined with your existing architecture.” Both your company and your chosen SaaS provider should complement each other to work at ease. Also there are SaaS support teams (e.g. – Lirik) widely available to answer SaaS queries which can then turn your SaaS end user experience wonderful and maximized.


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