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Software as a Service (SaaS) is also 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 shopper in CDs and the customer used to put in them in his desktop or server. There were many disadvantages with this system for both the customer as well because the software vendor.

Drawbacks to the Buyer

The primary drawback within the old system is that the client needs to pay the complete worth for the product even if he makes use of only sure functionalities of that software. Secondly, he needs to continuously replace the products every time a patch or new version is released. This imposes additional financial burden as well as technical issues similar to backward compatibility. The opposite drawback is once he purchased software from a particular vendor, he is struck with the same vendor. Even when the product doesn't meet his expectations, he does not have any alteration. He's totally depending on the same vendor for all supports.

Drawbacks to the Vendor

The seller also has lot of problems with the old system. At any time when a patch or new version is released, he needs to provide help for various platforms. This ultimately increases his production and distribution cost. Since differential pricing is just not potential in this model, vendor fees the same price for every person irrespective his usage level. On account of this consumer who uses very little options additionally ends paying more. One other problem is as most of the users are technically navies the seller needs to provide help at customer places for installation and breakdowns, which increase his operational cost.

SaaS and its advantages

SaaS model enables the distributors to release the product as a service. The vendor has complete management over the product as it is hosted by him at his server and used by the customers via 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 numerous service standards resembling Gold, Silver, Bronze, and many others according to the requirements and capacity of the customer. User can even select the features which he wants and pay only for the features he uses.

The seller has full management over the product; he installs upgrades and sets the features at customer desktop via distant controlled procedures. This reduces the distribution price and also saves a tremendous amount of time. Another advantage is because the buyer uses the software on real time he can instantly log the errors, bugs and drawback immediately and this helps the company fix them quickly. Although SaaS appears to be comparable with its predecessor ASP, each are usually 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 customers from their desktops. The ever growing demand for SasS among the many customers is because of its simplicity and the price effectiveness drives more and more distributors in to this domain with better products. This heralds a paradigm shift in the software delivery and changes the game completely.

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