Software as a Service (SaaS)

Software as a service (SaaS) is a software licensed on a subscription basis and hosted in the Cloud. SaaS is typically accessed via a web browser and has become a common delivery model for many business applications, including Hotel Property Management Systems (PMS). Gartner’s latest CRM market share reports that the worldwide CRM market grew 13.7% from $18B in 2012 to $20.4B in 2013, with 41% of all systems sold in 2013 being SaaS based.

One of the key benefits for companies accessing SaaS is the potential to reduce IT support costs. Because the software is hosted remotely, users don't need to invest in additional hardware. Software as a Service removes the need for organizations to handle the installation, set-up and daily upkeep and maintenance.

SaaS providers generally price applications using a subscription fee, most commonly a monthly fee or an annual fee. Cloud PMS systems are typically priced on a per room per month model or according to the number of rooms in the property (eg. 1-25, 26-50 etc.). Occasionally software companies will offer users the choice of a traditional perpetual license with an up-front cost or an SaaS model. This option allows users to select the model that is most appropriate for thier business.

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