Assessing service satisfaction between a 3PL provider and a vehicle manufacturer using the SERVQUAL technique

This paper reports on a new study conducted within a leading UK based (and US owned) car manufacturing company looking at the satisfaction between parties within a newly formed third party logistics (3PL) relationship. The study contains a two-way assessment of the relationship (i.e. the vehicle manufacturer’s Parts Supply and Logistics Operation’s assessment of the 3PL’s service and the 3PL’s assessment of the vehicle manufacturer’s relationship management ability). The study principally used an online SERVQUAL survey, (backed up with an on-line questionnaire, and face to face interviews) for data collection. The paper discusses the background and problems that have arisen in the relationship, the analysis of how each of the parties sees one other in terms of the service provided. Also, the findings and recommendations presented to management are outlined: these include factors such as the need for information sharing, reliability, flexibility, role specificity, trust and effective requirements management.

The domiciliary support in the vision of the informal care provider

The home support services are a social response in order to improve the quality of life directed predominantly for the elderly and for people with varying degrees of disability and dependence. Examples of those services are hygiene and personal comfort, medication, housekeeping and cleaning, preparation and monitoring of the meals; the dressing, etc. It is necessary to make society aware of the importance of these services to all those who need them. The general objective was to understand the most important relationships among informal caregivers, those who are care and home support services providers. Material and Methods. Data were collected through a questionnaire, using the various dimensions of the construct Quality SERVPERF model of service that matches the 22 items of SERVQUAL model. The various items used to assess the perception of care individuals and informal caregivers about the quality of home care services. 82 individuals participated providers of informal care, to receive home support services, and exclusion criteria, the fact of having a diagnosed psychiatric illness or psychological factors that prevent them from responding. The analysis was performed with SPSS and SEM-PLS for the estimation of the proposed structural model. Written consent was obtained, free and clear of each subject. Results and Conclusions. The results showed that the relationships with healthcare professionals are the most important positive effects on satisfaction. This research emphasizes the need to work closely with health professionals to improve the relationship between technicians and patients. Although current constructs appear to explain much of the satisfaction, it is recommended that the future researches exploit new variables, to get a better understanding of the effects of public health policies on the quality of life of these patients.

Análisis del sector del food service a partir del modelo de competitividad de Michael Porter para determinar la viabilidad de incursión de la empresa Bakery Service Foods

Las Mipymes son un componente fundamental para el desarrollo económico y social de cualquier país, en especial de un país como Colombia en donde representan el 99,9% de las empresas actualmente constituidas, concentrando el 81% de los empleados a nivel nacional (Fedesarrollo, 2013). Aunque juegan un papel protagónico en la economía colombiana, las Mipymes aún deben recorrer un camino extenso para poder explotar todo el potencial con el que cuentan, puesto que presentan un alto índice de mortandad empresarial en los primeros años de funcionamiento, esto evidenciado en los resultados del estudio GEM (Global Entrepreneurship Monitor, 2009) en donde se encontró que sólo el 12,61% de los negocios lograron superar los 42 meses de permanencia en el mercado (El País, 2010) principalmente a causa de la ausencia de una planeación estratégica de largo plazo que les permita a los negocios emprendedores del país alcanzar la competitividad. Si bien es cierto que crear empresa es relativamente sencillo, son múltiples los retos tanto internos como externos que deben enfrentar las organizaciones para poder alcanzar una etapa de madurez empresarial, sobre todo en los primeros años de funcionamiento que son los más críticos y decisivos para el futuro de cualquier empresa, es por esto que se hace indispensable emplear estrategias que les permitan ser sostenibles a largo plazo, en un entorno altamente competitivo por empresas tanto nacionales como internacionales, siendo este uno de los propósitos fundamentales al que deberían apostar los empresarios colombianos para crear un impacto positivo en la sociedad y aportar a la competitividad nacional. Bakery Service Foods, es una empresa dedicada a la comercialización y distribución de insumos de panadería con sede en el barrio Carvajal en la ciudad de Bogotá. Desde su constitución, el 29 de diciembre de 2008, la empresa ha buscado posicionarse en un mercado en donde tanto empresas grandes como Grasco, Grupo Team, Sigra, Duquesa, Conaceites, Alvarado, Aceites Finos; así como microempresas sin infraestructura ni solidez económica, componen un entorno altamente competitivo y hacinado que representa un desafío para una pequeña empresa familiar que no cuenta con un músculo financiero significativo. Por otra parte, Bakery Service Foods a traviesa por un período de alta incertidumbre debido a que el proveedor que representa el 85% de las ventas de los productos a los cuales representan, FANAGRA S.A, atraviesa por una completa reestructuración debido a la venta de dicha empresa a una multinacional suiza. Esta situación representa un alto riesgo para la compañía y exige que se emprendan acciones oportunas que les permitan reducir la alta dependencia en un único proveedor. Teniendo en cuenta que una de las ambiciones desde la fundación de la compañía ha sido incursionar y ser una empresa competitiva en el mercado de Food Service, que perdure en el tiempo, ¿Qué tan viable es diversificar el portafolio de la empresa Bakery Service Foods (BSF) en el mercado Food Service? Con este proyecto se busca diseñar una propuesta de diversificación de portafolio para la empresa Bakery Service Foods (BSF) analizando el mercado Food Service, por medio del modelo de Ventaja Competitiva de Michael Porter; lo anterior, con el propósito de que la empresa se consolide en este mercado como un aliado estratégico para sus clientes y representados, y con un modelo de negocio sostenible a largo plazo. Finalmente, se espera que a través de la propuesta de mejora para Bakery Service Foods, se afiancen los conocimientos administrativos obtenidos durante el pregrado en Administración de Empresas, aplicando satisfactoriamente las herramientas, metodologías y bases conceptuales adquiridas, para enriquecer el proceso de aprendizaje profesional y aportar valor a una empresa colombiana desde el mercado de Food Service.

Variable Demand and Profitability in Service Companies: a case study in the information technology sector

Managing a variable demand scenario is particularly challenging on services organizations because services companies usually have a major part of fixed costs. The article studies how a services organization manages its demand variability and its relation with the organization`s profitability. Moreover, the study searched for alternatives used to reduce the demand variability`s impact on the profitability of the company. The research was based on a case study with a Brazilian services provider on information technology business. The study suggests that alternatives like using outsourced employees to cover demand peaks may bring benefits only on short term, reducing the profitability of the company on long term: Some options are revealed, like the internationalization of employees and the investment on developing its own workforce.

An internet DGPS service for precise outdoor navigation

The goal of the work presented in this paper is to provide mobile platforms within our campus with a GPS based data service capable of supporting precise outdoor navigation. This can be achieved by providing campus-wide access to real time Differential GPS (DGPS) data. As a result, we designed and implemented a three-tier distributed system that provides Internet data links between remote DGPS sources and the campus and a campus-wide DGPS data dissemination service. The Internet data link service is a two-tier client/server where the server-side is connected to the DGPS station and the client-side is located at the campus. The campus-wide DGPS data provider disseminates the DGPS data received at the campus via the campus Intranet and via a wireless data link. The wireless broadcast is intended for portable receivers equipped with a DGPS wireless interface and the Intranet link is provided for receivers with a DGPS serial interface. The application is expected to provide adequate support for accurate outdoor campus navigation tasks.

Real Time Internet DGPS Service

The accuracy of the Navigation Satellite Timing and Ranging (NAVSTAR) Global Positioning System (GPS) measurements is insufficient for many outdoor navigation tasks. As a result, in the late nineties, a new methodology – the Differential GPS (DGPS) – was developed. The differential approach is based on the calculation and dissemination of the range errors of the GPS satellites received. GPS/DGPS receivers correlate the broadcasted GPS data with the DGPS corrections, granting users increased accuracy. DGPS data can be disseminated using terrestrial radio beacons, satellites and, more recently, the Internet. Our goal is to provide mobile platforms within our campus with DGPS data for precise outdoor navigation. To achieve this objective, we designed and implemented a three-tier client/server distributed system that establishes Internet links with remote DGPS sources and performs campus-wide dissemination of the obtained data. The Internet links are established between data servers connected to remote DGPS sources and the client, which is the data input module of the campus-wide DGPS data provider. The campus DGPS data provider allows the establishment of both Intranet and wireless links within the campus. This distributed system is expected to provide adequate support for accurate (submetric) outdoor navigation tasks.

Assessing the community needs of mental health residential care service users in Republic of Moldova

RESUMO: Background: Problemas de saúde mental são um grande problema clínico e social na República da Moldávia, representando uma quota significante de deficiência, sendo classificada no top cinco das dez linhas na hierarquia das condições. A taxa de incidência tem sido crescente na República da Moldávia, atingindo cerca de 15.000 por ano (14,655 em 2011), ou seja, 411,4 por 100 mil habitantes, e uma taxa de prevalência de 97.525 pessoas em 2011, ou seja, 2,737.9 por 100 mil habitantes. Sistema de atendimento psiquiátrico fornece serviços de saúde mental escassos a nível da comunidade, visando principalmente terapia hospitalar, centralizada, através de uma rede de três hospitais psiquiátricos, com 1.860 camas e 4 sanatórios psico- neurológicos com 1890 camas, assim alimentando-se a estigmatização do paciente. Objetivos: O objetivo deste estudo foi a avaliação das necessidades individuais dos beneficiários e do seu nível de autonomia dentro de cuidados residenciais, para o planeamento de reformas de saúde mental e desinstitucionalização na República da Moldávia. Este estudo foi encomendado pelo Ministério do Trabalho, Proteção Social e da Família e pelo Ministério da Saúde, com o apoio da Organização Mundial da Saúde, para determinar o cumprimento eficaz do artigo 19 da Convenção da ONU. O estudo tem os seguintes objetivos: Avaliar o nível de autonomia dos residentes nos hospitais psiquiátricos e sanatórios psico-neurológico, usando uma amostra representativa de 10 por ce nto do número total de pacientes/residentes e comparação cruzada; Para avaliar quatro sanatórios psico-neurológicos para adultos e três hospitais psiquiátricos; Para desenvolver recomendações para o planeamento da desinstitucionalização das pessoas com problemas de saúde mental e colocação na comunidade com base nos resultados do estudo. Metodologia e resultados: O estudo fez uso de duas ferramentas globais: questionário para a avaliação individual dos residentes do estabelecimento de saúde mental, e questionário de avaliação institucional. Todos os entrevistados foram divididos em quatro categorias conforme com o grau de dependência e preparação de viver de forma independente na comunidade. Apenas 1,2% dos entrevistados de PNHB eram totalmente dependentes de terceiros ou serviços especializados, tornando-se a categoria 4, que necessitam de cuidados e apoio contínuo. No PH esta categoria de pessoas é ausente. Conclusões: A condição dos entrevistados foi pior em PNBH que em PH. No entanto, ainda, aqueles que estão prontos para ser desinstitucionalizados correspondem com a maior parte dos entrevistados. Todos os hospitais tinham o consentimento do utente para admissão e tratamento, enquanto não houve consentimento qualquer em PNBH. É bastante óbvio que tanto os hospitais como também a sistema de assistência residencial não atingem a sua finalidade, o que significa que a maioria dos utentes pode ser desinstitucionalizados, sem qualquer terapia de suporte.------------------ABSTRACT: Background: Mental health problems are a major clinical and social issue in the Republic of Moldova,accounting for a significant share of disability and ranking in top five of the ten lines in the hierarchy of conditions. The incidence rate has been growing in the Republic of Moldova to reach approximately 15 thousand a year (14,655 in 2011), i.e. 411.4 per 100 thousand population, and a prevalence rate of 97,525 thousand people in 2011, i.e. 2,737.9 per 100 thousand population. Psychiatric care system provides for scanty mental health services at community level, aiming mainly at centralized hospital-based therapy through a network of three psychiatric hospitals tallying up 1,860 beds and 4 psycho-neurological boarding houses with 1,890 beds, thus fuelling up patient stigmatization. Objectives: The purpose of this study was to assess the individual needs of beneficiaries and their level of autonomy within residential care for the planning of mental health system reforms and deinstitutionalization in the Republic of Moldova. This study was commissioned by the Ministry of Labour, Social Protection and Family and by the Ministry of Health, with the World Health Organization support, to provide for effective enforcement of article 19 of the UN CRPD. The study pursued the following goals: To evaluate the level of autonomy of the psychiatric hospital and psycho-neurological boarding house residents by using a representative sample of 10 per cent of the total number of patients / residents and cross-comparison; To evaluate four psycho-neurological boarding houses for adults and three psychiatric hospitals; To develop recommendations for planning the deinstitutionalization of people with mental health problems and community placement based on the study findings.Methodology and results: The study made use of two global tools: questionnaire for individual assessment of mental health facility residents, and institutional assessment questionnaire. All interviewees were divided into four categories by one’s degree of dependence and readiness to live independently in the community. Only 1.2% of respondents from PNHB were fully dependent on a third party or specialized services, making up category 4, requiring continuous care and support. In PH this category of people is absent.Conclusions: The condition of respondents was worse in PNBH than in PH. However, yet, those ready to be deinstitutionalized accounted for most of respondents there. All hospitals had the resident’s consent to admission and treatment, whereas there was no consent in PNBH whatsoever. It is quite obvious that both the hospitals and residential care system do not achieve their intended purpose, meaning that the majority of residents may be deinstitutionalized without any support therapy.

A Process Analysis of Males and Females who Attended a Community Based Addiction Treatment Service: Towards an Expanded Paradigm

A process analysis was conducted in a community - based treatment programme for alcohol abuse. The aims of the study were: to evaluate assessment instruments and measures; to measure change following treatment; to monitor gender differences; to assess the importance of early and current relationships; and to evaluate the effects of therapists. Subjects (n=145, males 83/females 62) completed a semi-structured interview schedule, Severity of Alcohol Dependency Questionnaire (SADQ), Short Alcohol Dependence Data Questionnaire (SADD); General Health Questionnaire (GHQ 12), and Alcohol Problems Questionnaire (APQ). A further three non-standardised self-rated measures were devised by the author. Included was the opportunity to obtain qualitative data. Follow up data was collected at 3, 9 and 15 months following first assessment. The SADD, APQ and consumption measures using detailed drink diaries proved the most relevant assessment measures. Following treatment, there was significant reduction in clients' dependency levels at 3 months, maintained through 9 and 15 months. Key client-rated changes were progress in reducing consumption and alcohol problems leading to a better quality of life and health. Qualitative data augmented these quantitative results. Psychological and acquired cognitive behavioural skills emerged as the main reasons for positive change and the treatment programme was found to have played a significant role in their acquisition. It appears that addressing marital problems can lead to a reduction in alcohol dependency levels. Gender analysis showed that males and females were similar in demographic characteristics, alcohol history details and dependence levels. It was concluded that the differences found did not necessitate different treatment programmes for women. Early family relationships were more problematic for females. Therapist performance varied and that variance was reflected in their clients' outcomes.This resource was contributed by The National Documentation Centre on Drug Use.

The Role and Future Development of the Meals-on-Wheels Service for Older People in Ireland

This report provides, for the first time, a snapshot of the meals-on-wheels service in Ireland and gives a unique insight into client and provider perceptions of the service. The research findings underline the dual importance of the service for clients, who noted that it is a vital source of both nutritious meals and social contact and connectivity to the wider community. From a supply side perspective, the research findings point to the wide organisational diversity that exists within the service and the critical role that volunteers play, as well as highlighting difficulties that many services currently experience.

A comparison of the spatial dependence of body mass index among adults and children in a Swiss general population.

BACKGROUND: Body mass index (BMI) may cluster in space among adults and be spatially dependent. Whether BMI clusters among children and how age-specific BMI clusters are related remains unknown. We aimed to identify and compare the spatial dependence of BMI in adults and children in a Swiss general population, taking into account the area's income level. METHODS: Geo-referenced data from the Bus Santé study (adults, n=6663) and Geneva School Health Service (children, n=3601) were used. We implemented global (Moran's I) and local (local indicators of spatial association (LISA)) indices of spatial autocorrelation to investigate the spatial dependence of BMI in adults (35-74 years) and children (6-7 years). Weight and height were measured using standardized procedures. Five spatial autocorrelation classes (LISA clusters) were defined including the high-high BMI class (high BMI participant's BMI value correlated with high BMI-neighbors' mean BMI values). The spatial distributions of clusters were compared between adults and children with and without adjustment for area's income level. RESULTS: In both adults and children, BMI was clearly not distributed at random across the State of Geneva. Both adults' and children's BMIs were associated with the mean BMI of their neighborhood. We found that the clusters of higher BMI in adults and children are located in close, yet different, areas of the state. Significant clusters of high versus low BMIs were clearly identified in both adults and children. Area's income level was associated with children's BMI clusters. CONCLUSIONS: BMI clusters show a specific spatial dependence in adults and children from the general population. Using a fine-scale spatial analytic approach, we identified life course-specific clusters that could guide tailored interventions.

Androgen dependence of hirsutism, acne, and alopecia in women : retrospective analysis or 228 patients investigated for hyperandrogenism

RAPPORT DE SYNTHESE : L'hirsutisme, l'acné et l'alopécie chez la femme sont souvent associés à des troubles menstruels et à une production excessive d'androgènes, raison pour laquelle ces symptômes cutanés font l'objet d'évaluation endocrinienne. L'hyperandrogénie affecte 5 à 10 % des femmes en âge de reproduction et constitue un motif fréquent de consultation. Récemment, les sociétés d'endocrinologie ont émis des recommandations sur l'investigation et le traitement de l'hyperandrogénie. Longtemps confrontés à la demande de patientes souffrant d'hirsutisme, d'acné ou d'alopécie, nous avons décidé d'effectuer une approche diagnostique et thérapeutique comportant des dosages hormonaux et un traitement antiandrogénique. Un grand nombre de patientes a été ainsi étudié au fil des années. Les paramètres mesurés incluaient la testostérone plasmatique totale, l'androstènedione, le sulfate de déhydroépiandrostérone (DHEAS), la sex hormone-binding globulin (SHBG) et la testostérone salivaire. Cette dernière est considérée comme un bon reflet de la testostérone libre plasmatique, indépendamment des protéines de liaison. L'analyse rétrospective des dossiers nous a permis de comparer nos données avec celles de la littérature. Des 318 dossiers de patientes ayant consulté notre Service pour hirsutisme, acné ou alopécie pendant 6 ans, 228 ont pu être retenus pour une évaluation adéquate. Chez les patientes présentant ces symptômes de façon isolée, les taux d'androgènes et la prévalence de l'oligo-aménorhée étaient plus élevés en cas d'hirsutisme qu'en cas d'alopécie, avec des valeurs intermédiaires en cas d'acné. Aucun des androgènes mesurés ne permettait, à lui seul, d'identifier tous les cas d'hyperandrogénie, mais la testostérone salivaire a montré la meilleure corrélation positive avec l'hirsutisme, alors que la testostérone plasmatique totale montrait la moins bonne corrélation, et l'androstènedione, le DHEAS et la SHBG des corrélations intermédiaires (corrélation négative pour la SHBG). De plus, au cours du traitement antiandrogénique, la testostérone salivaire a montré l'abaissement proportionnel le plus marqué de tous les androgénes mesurés. Comparées aux patientes originaires d'Europe centrale, les patientes originaires d'Europe du sud consultaient avec des degrés d'hirsutisme supérieurs, mais aucune différence n'a été observée dans les corrélations entre l'hirsutisme et les taux hormonaux de ces deux groupes. En l'absence d'un nombre suffisant d'échographies ovariennes, .la prévalence du syndrome des ovaires polykystiques a été probablement sous-estimée (63 patientes, 27.6 % des cas), au bénéfice du diagnostic d'hyperandrogénie avec euménorrhée (101, 44.3 %); les autres diagnostics étaient: androgénes normaux (51, 22.4%), SHBG basse isolée (7, 3.1%), hyperplasie surrénalienne congénitale non-classique (4, 1.8%), et tumeur ovarienne (2, 0.9%). Nous avons comparé les divers traitements médicaux de l'hirsutisme publiés au cours des 25 dernières années, quant à leur efficacité et leur coût. La sensibilisation à l'insuline avec metformin est moins efficace, mais aussi moins chère. L'anti-androgène flutamide et l'inhibiteur de la 5-α reductase finastéride figurent parmi les traitements les plus performants, mais ils sont aussi les plus chers. Le traitement anti-androgénique et de suppression hormonale avec acétate de cyprotérone et éthinyloestradiol, utilisé dans cette étude, est également parmi les plus efficaces, tout en étant nettement moins cher. Cette étude est la première comparant directement les taux d'androgènes et la prévalence de l'oligoaménorrhée dans les 3 symptômes cutanés d'hyperandrogénie, hirsutisme, acné et alopécie, et elle démontre leur différente dépendance aux androgènes. La salive apparait comme un milieu de choix pour identifier ces patientes et la recommandation actuelle de doser la testostérone plasmatique totale en premier, pour distinguer l'hyperandrogénie de l'hirsutisme idiopathique, nous paraît inadéquate. Nous proposons, au contraire, d'abandonner ce dosage au profit de celui de la testostérone salivaire. Par ailleurs, notre étude infirme l'hypothèse d'une sensibilité cutanée accrue aux androgènes chez les femmes originaires du sud de l'Europe. Finalement, elle est la seule à comparer les effets cliniques, les changements biologiques et le coût annuel des traitements publiés de l'hirsutisme.

Health care provider choice in the case of patient-initiated contacts. An extended version of discrete choice of model demand

This paper analyzes the nature of health care provider choice inthe case of patient-initiated contacts, with special reference toa National Health Service setting, where monetary prices are zeroand general practitioners act as gatekeepers to publicly financedspecialized care. We focus our attention on the factors that mayexplain the continuously increasing use of hospital emergencyvisits as opposed to other provider alternatives. An extendedversion of a discrete choice model of demand for patient-initiatedcontacts is presented, allowing for individual and town residencesize differences in perceived quality (preferences) betweenalternative providers and including travel and waiting time asnon-monetary costs. Results of a nested multinomial logit model ofprovider choice are presented. Individual choice betweenalternatives considers, in a repeated nested structure, self-care,primary care, hospital and clinic emergency services. Welfareimplications and income effects are analyzed by computingcompensating variations, and by simulating the effects of userfees by levels of income. Results indicate that compensatingvariation per visit is higher than the direct marginal cost ofemergency visits, and consequently, emergency visits do not appearas an inefficient alternative even for non-urgent conditions.

Smart homes as service platforms. Research report of ÄLYKOP sub-project “Competitive advantage from customer value”

In this report, we summarize results of our part of the ÄLYKOP-project on customer value creation in the intersection of the health care, ICT, forest and energy industries. The research directs to describe how industry transformation and convergence create new possibilities, business opportunities and even new industries.The report consists of findings which are presented former in academic publications. The publication discusses on customer value, service provision and resource basis of the novel concepts through multiple theorethical frameworks. The report is divided into three maim sections which are theoretical background, discussion on health care industry and evaluations regarding novel smart home concepts. Transaction cost economics and Resource- Based view on the firm provides the theoretical basis to analyze the prescribed phenomena. The health care industry analysis describes the most important changes in the demand conditions of health care services, and explores the features that are likely to open new business opportunities for a solution provider. The third part of the report on the smart home business provides illustrations few potential concepts that can be considered to provide solutions to economical problems which arise from aging of population. The results provide several recommendations for the smart home platform developers in public and private sectors. By the analysis, public organizations dominate service provision and private markets are emergent state at present. We argue that public-private partnerships are nececssary for creating key suppliers. Indeed, paying attion on appropriate regulation, service specifications and technology standards would foster diffusion of new services. The dynamics of the service provision networks is driven by need for new capabiltities which are required for adapting business concepts to new competitive situation. Finally, the smart home framework revealed links between conventionally distant business areas such as health care and energy distribution. The platform integrates functionalities different for purposes which however apply same resource basis.

When to Utilize Software as a Service

Cloud computing enables on-demand network access to shared resources (e.g., computation, networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort. Cloud computing refers to both the applications delivered as services over the Internet and the hardware and system software in the data centers. Software as a service (SaaS) is part of cloud computing. It is one of the cloud service models. SaaS is software deployed as a hosted service and accessed over the Internet. In SaaS, the consumer uses the provider‘s applications running in the cloud. SaaS separates the possession and ownership of software from its use. The applications can be accessed from any device through a thin client interface. A typical SaaS application is used with a web browser based on monthly pricing. In this thesis, the characteristics of cloud computing and SaaS are presented. Also, a few implementation platforms for SaaS are discussed. Then, four different SaaS implementation cases and one transformation case are deliberated. The pros and cons of SaaS are studied. This is done based on literature references and analysis of the SaaS implementations and the transformation case. The analysis is done both from the customer‘s and service provider‘s point of view. In addition, the pros and cons of on-premises software are listed. The purpose of this thesis is to find when SaaS should be utilized and when it is better to choose a traditional on-premises software. The qualities of SaaS bring many benefits both for the customer as well as the provider. A customer should utilize SaaS when it provides cost savings, ease, and scalability over on-premises software. SaaS is reasonable when the customer does not need tailoring, but he only needs a simple, general-purpose service, and the application supports customer‘s core business. A provider should utilize SaaS when it offers cost savings, scalability, faster development, and wider customer base over on-premises software. It is wise to choose SaaS when the application is cheap, aimed at mass market, needs frequent updating, needs high performance computing, needs storing large amounts of data, or there is some other direct value from the cloud infrastructure.