Software as a Service (SaaS) is one of the most important components of cloud computing. It is seen as a departure from the old client-server architecture computing model and a natural extension of the Web 2.0 push for Web-based applications. With SaaS, no worries about licensing software packages, installing updates and patches, setting up training sessions with vendors, updating hardware needed to run programs, maintaining an IT staff dedicated to maintaining the servers and other costs associated with the old client-server model.

The earliest examples of SaaS date back to Hotmail, the now-ubiquitous email service owned by Microsoft. In 1996, Hotmail was a novelty for Internet users who were used to installing email programs on their computers or receiving their email from online providers like America Online and CompuServe. With the new Hotmail, users could not only receive their new messages from any computer connected to the Internet, but they could also access their archived messages and address books at any time. Even start-ups began to embrace Hotmail, since it did not require the installation of a server or software.

Some of the first “true SaaS” applications were designed for the business world. Customer relationship management (CRM) systems were first made available as a subscription at the turn of the 21st century. CRM systems evolved from what has become a paradigm shift in the business process: integrated customer experience management. From contact management to sales force automation, and from customer service to the point of sale, the value of CRM systems has truly transformed the business process.

With SaaS, programs needed by an individual or business are hosted remotely and delivered over the Internet. This is an ideal proposition for the MLM business owner just starting out with specific software needs. In the past, a start-up company was faced with making expensive hardware investments and building enough IT assets just to get its operation up and running. Only the administration part of the business required software solutions like a productivity suite like Microsoft Office or an accounting program like QuickBooks. Thanks to the advent of SaaS, an MLM startup doesn’t have to worry about all that.

An Internet-connected device equipped with an up-to-date and compatible web browser is often all that is needed for a new company to take advantage of SaaS. Let’s say, for example, that an MLM startup needs a CRM solution to start their sales and recruiting operations. A reasonably modern personal computer (or laptop, netbook, or even an iPhone) and consultation with a SaaS provider might be all you need to get started. Once the new company has been given the web address and the necessary credentials to log into the software, the new company can begin to organize its contact database, develop a sales strategy, create marketing materials, make accounting entries in a general ledger and even more depending on the type of CRM options chosen.

SaaS can work like magic for a startup MLM business that aims to “test the waters” first or start modestly. Another advantage of SaaS is that it is highly scalable, which means that its capacity can grow with the business and at the same rate. And since all aspects of software maintenance are left up to the SaaS provider, the start-up owner can spend more time focusing on growing the business rather than worrying about IT issues.