Software as a Service (SaaS) can also be 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 were delivered to the client in CDs and the client used to install them in his desktop or server. There have been many disadvantages with this system for both the customer as well because the software vendor.
Drawbacks to the Customer
The principle drawback in the old system is that the customer must pay the full price for the product even when he makes use of only sure functionalities of that software. Secondly, he must continuously update the products at any time when a patch or new version is released. This imposes additional financial burden as well as technical points resembling backward compatibility. The opposite drawback is as soon as he bought software from a particular vendor, he is struck with the same vendor. Even when the product does not meet his expectations, he does not have any alteration. He is absolutely dependent on the identical vendor for all supports.
Drawbacks to the Vendor
The vendor additionally has lot of problems with the old system. Whenever a patch or new version is released, he must provide support for various platforms. This in the end will increase his production and distribution cost. Since differential pricing is just not potential in this model, vendor prices the same worth for each consumer irrespective his usage level. On account of this person who makes use of very little features additionally ends paying more. Another problem is as many of the users are technically navies the seller needs to provide help at buyer places for installation and breakdowns, which enhance his operational cost.
SaaS and its advantages
SaaS model enables the distributors to release the product as a service. The seller has complete control over the product as it is hosted by him at his server and used by the purchasers by means of their computers remotely. User can use the software as a service, either by paying a periodical subscription or by paying as per usage. A Vendor provides varied service standards such as Gold, Silver, Bronze, and so forth according to the requirements and capacity of the customer. Consumer may choose the options which he wants and pay only for the options he uses.
The seller has full control over the product; he installs upgrades and sets the features at buyer desktop via distant managed procedures. This reduces the distribution price and also saves a tremendous quantity of time. One other advantage is as the buyer 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 seems to be comparable with its predecessor ASP, each will not be the same. ASP model provided the group to move their application to a third party server, where as SaaS provides shared applications which could be accessed by different users from their desktops. The ever increasing demand for SasS among the users is because of its simplicity and the fee effectiveness drives more and more vendors in to this domain with higher products. This heralds a paradigm shift within the software delivery and modifications the game completely.
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