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Software as a Service: What it is, what it isn’t, and SAP’s strategy

by Amy Thistle

May 20, 2010

Software as a Service (SaaS) seems to be the new buzz word/hot topic in IT. I was just reading a fantastic article in CIO magazine called “The Truth About Software as a Service (SaaS)” written by Galen Gruman.

The article explores whether or not the promise that Software as a Service will cut costs, increase efficiency, and is enterprise ready, is too good to be true.

An article published in Information Week last July - outlines SAP&rsq uo;s SaaS plans.

According to that article, here is what SAP customers can expect: function-specific software applications, available by subscription, that plug into customers' on-site SAP Business Suite systems, and that SAP will host for customers using a multitenant architecture.

It goes on to say groups of developers are creating these software services using the agile development method, resulting in rapid feedback from early users.

That will increase both the speed and number of on-demand apps SAP can bring to the market compared with what it could do if it were using more traditional development methods.

According to the CIO Magazine article, the three main areas of SaaS usage are CRM, HR, and procurement.  Are you utilizing SaaS in your HR department? What have you found to be the real benefits of doing so? Are there any challenges you faced or lessons learned that you can share with the Insider Learning Network community?


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