Software as a Service (SaaS) is also known as Software on Demand. It is the new idea to deliver the software products and its usages to the customer. Traditionally, the software products have been delivered to the shopper in CDs and the customer used to put in them in his desktop or server. There have been many disadvantages with this system for both the client as well as the software vendor.
Drawbacks to the Customer
The principle drawback within the old system is that the customer must pay the total value for the product even when he makes use of only certain functionalities of that software. Secondly, he must constantly replace the products at any time when a patch or new model is released. This imposes additional financial burden as well as technical issues similar to backward compatibility. The other drawback is as soon as he purchased software from a particular vendor, he’s struck with the identical vendor. Even if the product does not meet his expectations, he doesn’t have any alteration. He’s totally dependent on the identical vendor for all supports.
Drawbacks to the Vendor
The vendor additionally has lot of problems with the old system. Every time a patch or new model is launched, he must provide assist for various platforms. This finally increases his production and distribution cost. Since differential pricing is not possible in this model, vendor charges the same value for each consumer irrespective his utilization level. Attributable to this person who uses very little options also ends paying more. One other problem is as a lot of the customers are technically navies the vendor must provide help at customer places for installation and breakdowns, which improve his operational cost.
SaaS and its advantages
SaaS model enables the vendors to release the product as a service. The seller has full management over the product as it is hosted by him at his server and utilized by the shoppers by way of their computers remotely. Consumer can use the software as a service, either by paying a periodical subscription or by paying as per usage. A Vendor provides various service standards equivalent to Gold, Silver, Bronze, etc according to the requirements and capacity of the customer. User may also choose the options which he needs and pay only for the features he uses.
The seller has complete management over the product; he installs upgrades and sets the options at buyer desktop through remote controlled procedures. This reduces the distribution price and in addition saves a tremendous amount of time. Another advantage is as the buyer makes use of the software on real time he can immediately log the errors, bugs and drawback instantly and this helps the corporate fix them quickly. Though SaaS seems to be related with its predecessor ASP, both should not the same. ASP model provided the group to move their application to a third party server, the place as SaaS provides shared applications which might be accessed by totally different users from their desktops. The ever growing demand for SasS among the many users is due to its simplicity and the associated fee effectiveness drives more and more distributors in to this domain with higher products. This heralds a paradigm shift within the software delivery and adjustments the game completely.
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