Running Head: IMPACT OF SAAS ON ENTERPRISE LICENSING AGREEMENTS
Impact of SaaS on Enterprise Licensing Agreements
IMPACT OF SaaS ON ENTERPRISE LICENSING AGREEMENTS
It is quite evident that business ventures are considerably evolving alongside technology.
One needs to make business decisions that will have a long term effect on competitive
advantages over competitors. A business operator has the mandate to commit to best, secure,
valuable and accessible technology which can elevate his business to keep up or even surpass its
competitors. Cloud computing is a sure way of attaining such as compared to the traditional onpremise infrastructure. Cloud computing is classified into three categories which are software as
a service (SaaS), platform as a service (PaaS) and infrastructure as a Service (IaaS) (Wen &
Dong, 2013, September).
Software as a service (SaaS) is a type of cloud computing in which the software is hosted
by a third party software vendor and the software can be made available to the customer over the
internet. With SaaS, they are no need for business to install and run the software in their
premises or in their data centers, which eliminates the need for hardware acquisition,
maintenance of the software, software licensing among other costs. Several advantages can be
accrued by adoption of SaaS which include but not limited to, flexibility in payment where
customers subscribe rather than software purchases or additional hardware to support the
software, scalability of SaaS which provides the businesses to access more services on demand,
the automatic updates...