GigaOm | May 23, 2010

So You Wanna Be a SaaS Provider? – GigaOM

The growth of the cloud community and the appetite for cloud-based software options over the past few years has been remarkable, although not unexpected. The SaaS model offers two distinct competitive advantages for software developers — massive economies of scale and sustainable profit streams –- over the traditional model. Yet astoundingly, many firms take the plunge into providing SaaS without understanding the underlying requirements necessary to ensure success.

In order to become a sustained market leader in SaaS, software companies need to focus on building and delivering a highly efficient service to their customers without spending significant money on the underlying infrastructure (cloud or otherwise). A poor architecture will under-utilize server resources, making software costly to deliver.