The emergence of 'Software as a Service' (SaaS or Cloud Computing) as a delivery model is about to revolutionize retail technology.  SaaS is where software applications are hosted as a service provided through a private network or over the internet.  This eliminates the need for retailers to select, purchase, maintain and replace expensive server hardware and IT infrastructure to run the programs at their sites.

With multi-store operators, the traditional self managed model requires technical expertise seldom found in the retailer's business, just to keep things running.  Where maintenance is contracted out, the results are seldom ideal and generally prohibitvely expensive.  By contrast the SaaS model not only removes or reduces these imposts, but also drives up efficiencies, and, as it is gereally delivered for a regular fee, budgeting and account keeping is simplified.

Bas-X is one of the first Australian ASP (Application Service Provider) businesses to deploy their retail group management applications via SaaS.  Some retailers will understandably have initial concerns over the security of having their applications hosted over the internet.  Jeff Kaplan, managing Director of Thinkstrategies when interviewed in February 2008 explained, "There are always companies that are concerned about security or reliabiltiy or lack of control. Those tend to be the barriers to adoption.  The irony is, in many cases, these SaaS solutions are more secure because they have more controlled access to them.  They can be more reliable because many enterprises can't keep their own software up and running very effectively, and control is a relative term.  If control means you have to dedicate people to just keeping applications up and running, then maybe that's not a productive way for them to spend their day.  Many companies find their software as a service providers do a better job of keeping the software up and running, keeping it secure and continuously enhancing it to meet the customer needs."