Software-as-a-Service or SaaS has transformed the way an organization's IT department provides computing services to other business divisions. Emergence of this software delivery model is creating various opportunities for companies looking out to change their current deployment model to service-centric applications. This will enable them to benefit from generating more business value by offering services, which are drawn from internal & external sources as well as are in line with the company’s objectives. 

SaaS is simply a concept associated with the ASPs (application service providers), offering applications to enterprises over the Internet. The early software models were developed as the single tenant applications with limited capabilities of sharing processes and information with other applications. In contrast, the modern SaaS applications capitalize on the advantages of centralization via a single instance and multi tenant architecture. The applications are either directly offered by the vendor or an aggregator, bundling SaaS solutions from different vendors.

Today, SaaS as a unified application platform is changing the fundamental relationships between service providers and their clients. Similarly, this cloud computing model is changing the role and importance of a channel partner, who collaboratively work together with customers to have a win-win situation. 

Let's take a quick glance at how software-as-a-service is changing the software industry 

The rising popularity of SaaS as one of the most popular and widely recognized cloud deployment models has completely revolutionized the area of applications. It yields multiple growth opportunities to businesses while offering a wide range of software applications, from help desks to collaboration solutions and eCommerce platforms.

Besides, the SaaS offering delivers following benefits to the organizations:

- Lower cost as compared to the licensed software
- Lower cost for application support 
- Lower professional services fee
- Easier experimentation
- Faster implementation time
- Easier access to advanced technological solutions 

Moreover, SaaS models offer highly attractive features for large as well as mid size businesses. This is one of the major reasons because of which it remains as the fastest growing market in the IT industry. According to a study done by one of the leading research firms, Forrester, of the total growth in the IT category (6.2%) by 2014, software is forecasted to witness the strongest rise of nearly 7.8%. The other contributors to this growth are expected to be business intelligence (BI), human-based collaborative software, and mobile app developments.

In a nutshell, more and more enterprises across the globe are deploying SaaS products to their IT infrastructure in order to benefit from the flexibility as well as risk management implications of deploying this model.