Final answer:
Enterprise Software as a Service (SaaS) provides the same level of functionality as on-premise software but with reduced cost. SaaS eliminates the need for on-site server infrastructure and reduces upfront costs.
Step-by-step explanation:
Enterprise Software as a Service (SaaS) is a cloud-based software delivery model that offers the same level of functionality as on-premise software but with reduced cost. In an on-premise model, software is installed and managed on local servers, requiring infrastructure investments and maintenance costs.
SaaS, on the other hand, allows users to access software applications through a web browser, eliminating the need for on-site server infrastructure and reducing upfront costs.
For example, let's say a company needs a Customer Relationship Management (CRM) software. With on-premise software, they would need to purchase servers, install the software, and maintain the infrastructure. This can be costly and time-consuming.
With SaaS, the company can subscribe to a CRM SaaS provider and access the software through the internet. They don't need to worry about server maintenance, updates, or infrastructure costs. They can simply pay a subscription fee and use the software.
While the overall functionality of the software may be the same in both on-premise and SaaS models, SaaS often offers additional benefits such as automatic updates, scalability, and accessibility from anywhere with an internet connection. These advantages make SaaS a cost-effective choice for many businesses.