Providing software as a service (SaaS) is proving to be an attractive option compared with the business of selling software, reports the Economic Times.

SaaS is a new model, which can transform the method of selling software products and their management. Conventionally, customers buy software products and install them on their desktops. With SaaS, companies can make their software products available as a service. The company would host the product, which can be accessed by users remotely through their desktops.The model has various benefits as it does not require infrastructure to manage. It also does not require installation. 

SaaS reduces the cost of purchasing expensive software. It benefits the users as they need not pay for the whole product if they wish to opt for a few features or to use the product sparingly. For a vendor, SaaS provides better protection for its intellectual property and also provides a continuous source of revenue.

Currently, many small and medium-sized software companies favour SaaS. Even software giants such as SAP, Oracle and Microsoft are moving towards SaaS. However, there are concerns about privacy and loss of control. Although SaaS has been adopted in India, the West is yet to adopt the model. X