commercial response to SaaS

HOSTED SOFTWARE or 'SOFTWARE AS A SERVICE' (SaaS) is when you run applications (e.g. word or excel) in a WEB BROWSER. the applications are not installed onto your computer e.g. when you log on your computer and word is already there to use without internet access.

commercial software producers (microsoft) make money by selling software such as word and excel.

some software as a service applications are now available for free e.g. GOOGLEDOCS so the business of commercial providers could be THREATENED as customers can use the free 'software as a service' online applications. commerical software producers have had to come up with ways that mean customers must pay for their software. 

responses to SaaS

to respond to this challenge the commercial software producers have:

- made products more appealing- by adding new functions which makes it better quality

- provided a bundle, which means when you buy a computer the software is often already installed

- provided technical support, this helps services and training materials

- used copyright to protect their products to stop similar 'free' products being offered as a 'software service'

- offered their own versions of software as a service