Natural Monopoly Essay Example | Topics and Well Written Essays - 250 words

Natural Monopoly - Essay Example With the pay as you go payment model, this system is bound to favor most companies and firms especially the small firms. As the usage increases so does the costs for example the charges would depend on the number of users as well as the number of transactions. The different benefits of SaaS have gone a step further to encourage the monopoly that is in the software development world. Saas implementation will allow for the IT (Information Technology) budget to go further as the costs are lesser as compared to the acquiring of traditional software. The people services in SaaS are also not underestimated. Another advantage that is fanning the SaaS flame is that it allows for better management of growth. There is also the aspect of the vendor being accountable as they are and will remain in contact with the user even after the purchase of the software (MultiMedia Communications). As the computer software is hosted at the vendor’s premises in SaaS, the support offered by the vendor on the software only goes further to encourage users to opt for this technology. The staffs of the vendor company are in a better position to offer the best support as well as maintenance on the software. The software can and is also upgraded often as they are in close contact with the client and can get to know the changing user needs and requirements. The close contact will enable the development of software that is very detailed and specific to the user’s needs. Traditional software applications have not done much to discourage monopoly in the software development world. Traditional software is expensive as its upfront licensing costs as well as the annual evergreen support costs are off the roof. All other costs including maintenance and management are provided for by the user, an aspect that many a company are running away from as they try to minimize their