Repealing the SaaS Tax: Page 2

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The concept behind the platform is powerful – abstract as much of the SaaS distribution model away from software vendor and their application, while at the same time acting as a communal gathering ground for the creation of a well-saturated ecosystem of suppliers and consumers.

That’s an optimistic mouthful that begs for explanation. To grasp the concept of dumping this SaaS Tax through a SaaS platform, it would be wise to dissect the platform concept itself. From a thousand-mile bird’s eye view, most SaaS platforms intend to provide:

Tenancy – The ability to distinguish one user from another in the data and execution aspects of a hosted application is a major tenet of SaaS. Generally, the concept of tenancy is void in traditional on-premise installs and can complicate architectures beyond what was traditionally accepted.

Flexible Monetization & Metering – Being able to charge for your SaaS application independent of the software code, and meter it appropriately, is something that your application shouldn’t have to deal with directly.

Scalability – The idea that a successful application will buckle under its own popularity is never good. Being able to accommodate your aggregated customer base is a must, and planning for success is a requirement.

Reliability – What good is a SaaS application that isn’t up?

Hardware Infrastructure – As a vendor, one of the operational headaches of SaaS applications is dealing with an enterprise-grade hardware infrastructure.

Value Added Services – A good platform should endow the application it hosts with value beyond what was developed by the vendor. The value should either benefit the vendor or the end user.

Ecosystem – As the number of vendors that host their applications on a given platform increases, and as the number of users using those applications increases, an ecosystem begins to develop. Ideally, this ecosystem allows all parties the ability to investigate and exercise their right to connections between ecosystem members, deriving value beyond that offered by any single SaaS offering.

At the end of the day, a software vendor should be able to get away with writing the business logic of their application and provide an interface to use the application, and that’s all. No SaaS overhead, no major added expenses, no added time to already long project schedules, but only business as usual – writing quality software for consumption.


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