The Internet offers businesses the ability to focus on their competitive advantage rather than spending time building up expensive infrastructure. Software as a service (SaaS) is a case in point. These on-demand applications are generally deployed over the Internet or run behind a firewall in a local area network. They are also highly flexible and scalable and lets users save money by avoiding the costs of buying their own servers or software. This model is also referred to as the application Service Provider (ASP) model. ASPs charge on a “per-use” basis or may require a monthly/annual fee.

Small enterprises and home users are usually more cost conscious. They’ve been using a lot of freeware and shareware applications from the Internet on their computers. Shareware applications are essentially “try-it-before-you-buy-it” software. Unlike traditional software distribution channels where one is forced to pay for the product even before one has seen it, these applications allow a user to try the program, evaluate it, and decide if it suits the customer’s needs or not. It offers the ultimate money back guarantee; if you don’t use the product, you don’t pay for it.

The Internet, to use a clichéd term, has truly revolutionized business in every way, from the way products are created to the way products are marketed. In fact, the Internet is unearthing hitherto unknown markets. The lowering of search costs leads to a substantial increase in the number of products that are difficult to find (i.e. you can find almost anything). Some of the most famous businesses that have benefited from this new model of “using the niche to find the riches” include eBay (auctions), Google (web search engines), and Audible (audio books).

The Internet allows users to research and learn, conduct business, play games, shop around the world without leaving the comforts of home, and communicate with people across the globe instantaneously. Who knows what’s next?