SaaS-based telematics services are defined as software-based telematics applications residing in the cloud (in either a public or private cloud infrastructure), where the intelligence or data processing essential to the functioning of the application is performed in the cloud rather than by software/hardware residing locally in the vehicle.
“SaaS cloud-based services offer many benefits for telematics services providers compared to the traditional platforms,” comments Gareth Owen, principal analyst at ABI Research. “For example, the platform is easily scalable and all IT services can be outsourced to the cloud provider which means that the telematics provider can focus on its core competence of developing telematics applications.”