On-Demand Software or SaaS (Software as a Service)

"On-Demand Software" applications (or "SaaS" (Software as a Service) or "Hosted Applications" as they are otherwise known) describes a software application delivered to the customer via the internet as a service. The customer accesses the application through a web browser and pays an annual subscription cost for using the software application. By eliminating the need to install and run application software on your own computer, On-Demand Software alleviates the burden of software maintenance, a server infrastructure and all the associated support and maintenace costs. The On-Demand Software software supplier will host the application for the customer, or outsource this function a specialist third-party data management company. In this way, as a customer you reduce your investment on IT infrastructure costs.

On-Demand Software generally includes implementation, maintenance, training, support and application management services delivered by the application vendor and augmented by a Solution Provider that provides integration and customization services and on-site hand-holding to enable a quick and productive ramp-up.
	Advantages of an on-demand software include:
	Quick ramp-up means shorter time to productive use of applications.
	Automatic updates mean no costly upgrades or reslting business disruption.
	Ease of access means a greater opportunity of collaboration for employees and trading partners.
	Subscription based licensing means no upfront capital expenditure.
	Professionaly managed data centres supported by comprehensive Service Level Agreements (SLAs) means a high level of data security.

This was originally a revolutionary concept in the late 1990's. The software market is now in an evolutionary stage as businesses and the software vendors serving them become serious about On-Demand Software (or SaaS) delivery. The current market has proven that On-Demand Software delivery is in demand now and will grow substantially in the coming years. Research firm IDC predicts that by 2008, subscription license revenues will hit $43 billion worldwide, or 34% of the total software market.