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Software as a Service Resources
SIIA believes that it was the first to widely promulgate the term Software as a Service. In the middle of the year 2000, SIIA came to realize that the then-ubiquitous term ‘application service provider’ was inadequate to describe the new phenomenon of totally web-native services. ASPs, for the most part, simply hosted legacy-built application in an online server. The eBusiness Division assigned a working group to come up with a definition and appropriate name for the new services. The result: ‘software as a service’. Following is a quote from a white paper printed in February 2001, written in winter 2000, defining the industry.
“The market is hindered by disagreement over the intrinsic characteristics of services, and even the terminology used to describe application services. The definitions are constantly shifting, buffeted by the creation of new business models and technologies that companies employ to deliver their vision of software as a service. The marketplace is inundated with acronyms each representing a slightly different approach - application service provider (ASP), application infrastructure providers (AIPs) Internet business service (IBS), business service provider (BSP), solutions service provider (SSP) and more. Therefore, to avoid confusion, SIIA refers to the model generally as software as a service.

In the software as a service model, the application, or service, is deployed from a centralized data center across a network - Internet, Intranet, LAN, or VPN - providing access and use on a recurring fee basis. Users "rent,", "subscribe to," “are assigned”, or "are granted access to" the applications from a central provider. Business models vary according to the level to which the software is streamlined, to lower price and increase efficiency, or value-added through customization to further improve digitized business processes.

Software as a Service Strategic Backgrounder, February 2001
(written in December 2000)

To learn more about Software as a Service initiatives and resources, contact:

Rhianna Collier, Membership Development Manager, +1.408.884.3834
Nate Philip, Program Manager, +1.202.789.4473


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