In computers, everything old is new again eventually.

The idea of "dumb terminals" running software on a central server is an old idea but these days it has a new name and a new implementation and a lot of potential. The model is being called "software as a service" (which I now see described as SAAS) and you can expect to hear more about it.

SAAS is going to stick around because it provides a real value to normal users and small businesses.

As software and operating systems like Windows XP have gotten more and more complex, they have also gotten more and more difficult to install, manage, maintain and use. Time spent just keeping your PC running and learning new software is a huge burden for most people. Big companies can afford a stable of nerds to keep things running but even there, getting the IT department involved isnt something most people enjoy.

Considering the amount of specialized knowledge required for these software chores, it is hard to find and train the right folks. On the other hand, the company that sells the software knows the most about how to maintain it, so if you can somehow leverage their skills you will make it easier for users and provide value. And if you can do all your maintenance on a single server instead of dozens of individual PC's, mores the better.

Lower costs and easier software is the promise of SAAS. The question is whether or not this is the time for SAAS.

On a recent episode of TWiT, Leo Laparte commented that "the operating system has become just the way you run a browser." He is dead-on there and using the browser as a tool for applications is a huge step towards SAAS and towards platform independence. (The idea that the OS you use, Mac or Windows or Linux, does not impact your use of the program.)

I had been thinking that it would be cool if someone took the Open Office source code and modified it to run in a SAAS model. On that podcast I learned that there are several players out there who are working on web-based word processors and have been for some time. Since the word processor is one of the pieces of software that every personal computer has to run (the others are a browser, email, and a spreadsheet), the idea of a web-based alternative to Microsoft Word has huge potential.

Microsoft is in the best position to exploit SAAS for the office productivity suite since they have the market standard and the IP. But MS Office is such a cash cow, I would actually expect Microsoft to go slow and I would expect the innovation to come from elsewhere. I suspect this is what Google had in mind when they purchased Writely recently.

Whoever turns out to the innovator, I think regular users like you and me will be the beneficiaries. Keep your eyes out for the new products.