Software as a Service (SaaS) can be known as Software on Demand. It’s the new concept to deliver the software products and its usages to the customer. Traditionally, the software products had been delivered to the shopper in CDs and the customer used to put in them in his desktop or server. There were many disadvantages with this system for each the shopper as well as the software vendor.
Drawbacks to the Customer
The principle drawback within the old system is that the customer needs to pay the total worth for the product even when he uses only sure functionalities of that software. Secondly, he must continuously replace the products at any time when a patch or new model is released. This imposes additional monetary burden as well as technical points resembling backward compatibility. The other drawback is as soon as he purchased software from a particular vendor, he is struck with the identical vendor. Even when the product does not meet his expectations, he does not have any alteration. He is totally depending on the identical vendor for all supports.
Drawbacks to the Vendor
The seller also has lot of problems with the old system. Every time a patch or new version is released, he must provide support for numerous platforms. This ultimately increases his production and distribution cost. Since differential pricing shouldn’t be attainable in this model, vendor charges the identical worth for each consumer irrespective his utilization level. Due to this user who makes use of very little features additionally ends paying more. One other problem is as most of the customers are technically navies the seller needs to provide support at buyer places for set up and breakdowns, which increase his operational cost.
SaaS and its advantages
SaaS model enables the vendors to launch the product as a service. The seller has full control over the product as it is hosted by him at his server and used by the purchasers by way of their computers remotely. Person 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 akin to Gold, Silver, Bronze, and many others according to the requirements and capacity of the customer. Consumer may also choose the options which he wants and pay only for the features he uses.
The seller has complete control over the product; he installs upgrades and sets the features at customer desktop through distant controlled procedures. This reduces the distribution cost and also saves a tremendous amount of time. One other advantage is because the customer uses the software on real time he can immediately log the errors, bugs and drawback immediately and this helps the corporate fix them quickly. Though SaaS seems to be comparable with its predecessor ASP, both usually are not the same. ASP model provided the group to move their application to a third party server, where as SaaS provides shared applications which can be accessed by different users from their desktops. The ever rising demand for SasS among the many users is due to its simplicity and the cost effectiveness drives more and more vendors in to this domain with higher products. This heralds a paradigm shift in the software delivery and adjustments the game completely.
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