
What is SaaS? Why Should Retailers Care?
One of the greatest technology innovations to come to the fore front recently is Software as a Service (SaaS), sometimes called cloud based software. Rather than a specific technology, this is a centralized approach to managing software. This innovation fundamentally changes how software is built, sold and purchased. Essentially, software is hosted by the provider and accessed over the internet by multiple users running specific instances of the software customized to each user’s needs, such as a presentation of a specific brand. Typically, the retail industry is a late adopter of new technologies because it operates on very narrow margins. However, because SaaS enables rapid deployment of systems at a fraction of the traditional costs, the game is changing, and retailers are assertively adopting this platform.
A SaaS product offers the following advantages
over a more traditional software implementation:
Because the software is hosted by the provider, there is no need to purchase and securely house servers. There are also reduced costs to deploy the software as the software is already installed and running. This allows the purchaser to focus on the important task of configuring the software to their specific requirements. The cost savings can be significant. Because SaaS is typically provided on a “Pay as You Go” annual or monthly subscription, the need to pay for the entire license fee upfront is eliminated, dramatically reducing implementation costs and risk.
Retailers, like other enterprises, are finding on-demand Software-as-a-Service solutions a viable alternative to designing and deploying proprietary IT systems.
Accelerated revenue growth. Rapid adoption of best-of-breed systems give retailers a competitive edge, allowing them to grow revenues more quickly.
Greater guarantee of service levels – The SaaS provider enjoys economies of scale when hosting the software, because the cost of a very secure implementation is allocated across numerous instances. This means they are able to invest substantially more in creating a secure and reliable hosting environment and deliver a higher level of service as a result.

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Regardless of motive, the trend is clear…
savvy retailers are heading for the cloud.
Retailers, like other enterprises, are finding on-demand Software-as-a-Service solutions a viable alternative to designing and deploying proprietary IT systems.