Glossary > Disintermediation
Disintermediation in Software-as-a-Service (SaaS) refers to the removal or reduction of intermediaries in the software delivery and distribution process. Intermediaries are entities that traditionally play a role in connecting software vendors with end-users, such as resellers, distributors, or value-added service providers.
SaaS, as a software delivery model, allows software vendors to directly provide their applications and services to customers over the internet. This eliminates the need for intermediaries and enables a direct relationship between the SaaS provider and the end-user.
Disintermediation in SaaS can occur in several ways:
- Direct Sales: SaaS providers can sell their software directly to customers without relying on intermediaries like resellers or distributors. They establish their own sales channels, marketing strategies, and customer support systems to interact directly with the end-users.
- Self-Service Model: SaaS providers often adopt a self-service approach, where customers can discover, evaluate, purchase, and use software applications without any intermediary involvement. Customers can access the SaaS offerings through the provider’s website or an online marketplace.
- Online Marketplaces: Disintermediation can be facilitated by online marketplaces that connect SaaS providers directly with customers. These marketplaces serve as platforms where SaaS vendors can list and sell their applications, while customers can browse, compare, and purchase the software directly from the providers.
- Subscription-Based Billing: SaaS providers often offer subscription-based pricing models, where customers pay a recurring fee for the software usage. This eliminates the need for intermediaries involved in traditional software licensing and enables the SaaS provider to directly manage billing and invoicing.
Disintermediation in SaaS can lead to various benefits for both SaaS providers and customers. Providers can have greater control over the software distribution process, gain insights into customer behavior, and build direct relationships for improved customer support and feedback. Customers, on the other hand, can benefit from simplified purchasing processes, faster access to software, and direct interaction with the software vendor for support and updates.
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