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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 had been delivered to the client in CDs and the customer used to install them in his desktop or server. There have been many disadvantages with this system for each the shopper as well because the software vendor.

Drawbacks to the Buyer

The primary drawback in the old system is that the client must pay the complete value for the product even if he makes use of only certain functionalities of that software. Secondly, he needs to continually replace the products every time a patch or new model is released. This imposes additional financial burden as well as technical issues comparable to backward compatibility. The opposite drawback is once he bought software from a particular vendor, he's struck with the same vendor. Even when the product does not meet his expectations, he does not have any alteration. He's fully dependent on the same vendor for all supports.

Drawbacks to the Vendor

The seller additionally has lot of problems with the old system. At any time when a patch or new version is launched, he must provide support for various platforms. This finally increases his production and distribution cost. Since differential pricing will not be possible in this model, vendor expenses the same price for each person irrespective his usage level. Resulting from this person who uses very little options also ends paying more. One other problem is as most of the users are technically navies the vendor must provide assist at buyer 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 vendor has complete management over the product as it is hosted by him at his server and utilized by the purchasers by means of their computer systems 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 resembling Gold, Silver, Bronze, etc according to the requirements and capacity of the customer. User can even select the options which he needs and pay only for the options he uses.

The seller has full management over the product; he installs upgrades and sets the options at buyer desktop by means of distant managed procedures. This reduces the distribution cost and also saves a tremendous amount of time. Another advantage is as the buyer makes use of 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 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 customers from their desktops. The ever increasing demand for SasS among the customers is because of its simplicity and the cost 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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