Software as a Service (SaaS) is one of the most important components of cloud computing. It is considered a departure from the old computing model of client-server architecture and a natural extension of the Web 2.0 push for Web-based applications. With SaaS, no more worrying about licensing software packages, installing updates and patches, setting up training sessions with vendors, upgrading hardware needed to run programs, maintaining an IT staff dedicated to maintain 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 new to 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 Internet-connected computer, but also access their archived messages and address books at any time. Even start-ups began to adopt Hotmail, as it didn’t require a server or software to be installed.

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 in the early 21st century. CRM systems evolved from what has become a paradigm shift in 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, the programs an individual or business needs are hosted remotely and delivered over the Internet. This is an ideal proposition for an MLM business owner just starting out with specific software needs. In the past, a start-up 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 of that.

An Internet-connected device equipped with an up-to-date and compatible web browser is often all that is needed for a new business 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 a consultation with a SaaS provider could be the sum of the necessary requirements to get started. Once the new business has been given the web address and credentials needed to log into the software, the new business can begin organizing their contact database, developing a sales strategy, creating 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 operating 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 to the SaaS provider, the new business owner can spend more time focusing on growing the business rather than worrying about IT issues.