Benefits And Disadvantages Of Saas Essay


1.What is SaaS and outline its benefit and disadvantages. Explain your answer.
2.What business risks had Liberty Wines faced?.
3.What data and IT Problems were limiting FinCEN’s ability to Fight Financial Crime?


1.SaaS is the abbreviated form of Software as a Service is also known as a software which is on demand. In this software delivery model software and the information related to the same are stored in a centralised system and contacted with the help of a thin client which is generally a web browser via the internet such as Wikipedia. The said product is not required to be purchased and installed separately in a fix location (Clair, 2010). All it requires the user to pay a subscription fee and then pay as needed.

The benefits offers by SaaS are as under:

  1. The capital investment in the hardware and software is very less.
  2. The service can be upgraded without adding any servers.
  3. The IT department can look into some other area of concern as SaaS does not demand any sort of maintenance.
  4. The software can be easily updated without disturbing the daily work of the organization.

The disadvantages of using SaaS are as under:

  1. Exposure to sticker shock by the organizations is a very big drawback that SaaS offers.
  2. Even if at the outlook it may seem to be a cheap method of maintaining data but the additions that are to be made of various services as and when needed turns out to be very expensive.
  3. Vendor viability is a problem as there are many vendors in the market offering SaaS at a very low cost.
  4. Lastly it even fails to incorporate the new system with the one already installed in the organization. (McLellan, 2013)

2.Liberty Wines faced the biggest risk associated with the IT system which was installed in the organization since it was not of the latest version. The system was too outdated to cope up with the rising volume of data so much that the employees failed to reply to the customer queries on time.

IT infrastructure of Liberty Wine had a negative impact on the competitive advantage of the company. It is not being able to sustain the expanding business requirements therefore leading toa loss of clientele.

However, shifting of the company’s IT system to virtualisation has benefited the company in the many ways. The same is illustrated below:

  1. First and foremost the Company’s impact on the carbon footprint of the environment has got reduced by 60 percent due to reduction in the power and the usage of the number of air conditioners.
  2. The number of physical servers have also reduced to only three from ten along with one extra server for the purpose of server in case of any emergency or crashing of the system. The reduction led to savings in the office space thus reducing the cost as well.
  3. The App introduced by Liberty Wines was fast enough to help the employees interact with ease with the customers’ demands and questions without much of delay (Metzler 2011).

3.FinCen was unable to fight financial crime successfully before 2008 as the IT system installed was outdated which did not have the capability to process huge volumes of data regarding the money laundering and terrorism at the right time. Usage of off-line system instead of an online system also was a cause for the delay in distribution of data to the required agencies and bureaus who could then take an action against the said crime.

FinCen should upgrade its present IT system in vogue along with the analytical potentials. If it upgrades its system then the bureau will be able to process data well on time. For the same tey have even launched an App to support the real time availability of data of the past 11 years to the various users such as government officials and law enforcement agencies.

Financial intelligence is dependent upon successful scrutinising of the data which would depict all kind of illegal activities clearly.

The same is very crucial for the national security as well as these financial agencies help to find out if any kind of illegitimate work is being carried out in the country which could impact the safety and security of the people staying. There main aim is to find out if any danger is about to approach and if so make the country aware so that adequate steps to mitigate the same are taken (Lowers, 2015).

Recently Ann Martin an associate of FinCen had detected the financial crime which was taking place between USA and Mexico where the latter was supplying drug pills in USA and the proceeds were being deposited in a local bank and wired back to USA. She analysed the big data set and found out the entire of such an act and informed the Mexican Government (Davidson, 2011). The same was possible because of the fact that FinCen had also upgraded its IT system well enough to help perform such analysis.


Clair,G.S. (2010). Software-as-a-Service (SaaS). Retrieved from

Davidson,J. (2011). Rewards of federal service. Retrieved from

Lowers,M. (2015). The role of FinCen in BSA/AML. Retrieved from

McLellan,C. (2013). SaaS: Pros, cons and leading vendors. Retrieved from

Metzler,J. (2011). Virtualisation : Benefits, Challenges, and Solutions. Retrieved from

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