There is a lot of interest in SAAS (software as a service) and migrating software applications online from their traditional place on the corporate network. And the drive to use business applications online continues to gain momentum. Why? What is it that has prompted this interest on the part of IT professionals and c-level decision makers? Do appreciate the benefits of hosted online applications for business, it might be helpful to start by looking at the fundamentals.

• No client/server software installation or maintenance - that’s right, no more 800-page planning and implementation guides. Additionally, no vendor installation or upgrades required.
• Shorter deployment time - potentially minutes as opposed to a phased implementation that could take months.
• Global availability - sure the technology exists to make on-premise software available outside of the premises, but we’re talking about functionality that is available from anywhere on the internet natively.
• Service Level Agreement (SLA) adherence - reported bugs can be fixed minus any rollout overhead. Sure the provider actually has to fix the issue, but assuming they’ve deployed a moderately efficient hosted application the rollout of a patch or fix should happen in the blink of an eye.
• Constant, Smaller, Upgrades - when you use a hosted application, it is in the best interest of the provider to keep you happy and they can do so by constantly improving the application experience. With SaaS this can come in the form of consistent miniscule changes that add up over time instead of monster patch and upgrades that cost you time and money to implement.
• Ease Your Internal IT Pains - This is a big one. Most of the last several points here highlight that hosted apps offload a great deal of IT pains incurred by software consumers in the traditional client/server model. This leaves IT personnel to focus on improving the day-to-day technical operations of your company instead of being called upon to troubleshoot 3rd party software or maintain aging infrastructure. Which leads to…
• Redistribute IT Budget - by outsourcing software/applicaton functionality to a provider, the enterprise realizes a cost savings in infrastructure requirements and IT personnel knowledge requirements. This allows the enterprise to focus on core competencies. It also means that the cost savings from using hosted applications can be flat out saved, or reallocated to boost productivity through other services.
• Low start-up costs - Generally you'll be required to pay a low monthly fee for the service. Some providers charge by the user, many simply charge one fee to include your entire staff regardless of the number of users.
• Minimal Risk, no long term commitment- Very few vendors require a contract for their applications. More likely you'll be on pay as you play model which means if you decide to stop using the service - you simply notify the vendor to stop your subscription.
• No need to synchronize data with multiple devices - Your data is housed online. Just be sure that it is secure, encrypted, and available to you as a download should you ever stop using the service.

Are you using any hosted online applications? What has your experience been with them?