Software as a Service (SaaS) can also be known as Software on Demand. It is the new concept to deliver the software products and its usages to the customer. Traditionally, the software products have been delivered to the client in CDs and the client used to put in them in his desktop or server. There were many disadvantages with this system for both the shopper as well as the software vendor.
Drawbacks to the Buyer
The principle drawback in the old system is that the shopper must pay the total worth for the product even if he uses only certain functionalities of that software. Secondly, he must always replace the products at any time when a patch or new model is released. This imposes additional financial burden as well as technical points comparable to backward compatibility. The opposite drawback is once he bought software from a particular vendor, he is struck with the same vendor. Even if the product does not meet his expectations, he does not have any alteration. He is totally dependent on the same vendor for all supports.
Drawbacks to the Vendor
The seller additionally has lot of problems with the old system. Whenever a patch or new version is launched, he must provide support for varied platforms. This finally increases his production and distribution cost. Since differential pricing is not possible in this model, vendor fees the same value for every consumer irrespective his utilization level. As a consequence of this person who makes use of very little options additionally ends paying more. Another problem is as most of the users are technically navies the seller needs to provide help at customer places for installation and breakdowns, which enhance his operational cost.
SaaS and its advantages
SaaS model enables the vendors to launch the product as a service. The vendor has full control over the product as it is hosted by him at his server and utilized by the customers by way of their computer systems remotely. Person can use the software as a service, either by paying a periodical subscription or by paying as per usage. A Vendor provides numerous service standards akin to Gold, Silver, Bronze, etc according to the requirements and capacity of the customer. User may also select the options which he needs and pay only for the options he uses.
The vendor has complete management over the product; he installs upgrades and sets the options at customer desktop through remote controlled procedures. This reduces the distribution value and likewise saves a tremendous quantity of time. Another advantage is as the customer uses the software on real time he can instantly log the errors, bugs and drawback instantly and this helps the corporate fix them quickly. Although SaaS appears to be similar with its predecessor ASP, each 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 may be accessed by completely different users from their desktops. The ever increasing demand for SasS among the many customers is due to its simplicity and the cost effectiveness drives more and more vendors in to this domain with better products. This heralds a paradigm shift in the software delivery and adjustments the game completely.
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