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 were delivered to the client in CDs and the shopper used to install them in his desktop or server. There were many disadvantages with this system for both the shopper as well because the software vendor.
Drawbacks to the Customer
The primary drawback in the old system is that the shopper must pay the total price for the product even when he uses only sure functionalities of that software. Secondly, he must consistently update the products every time a patch or new model is released. This imposes additional financial burden as well as technical issues resembling backward compatibility. The other drawback is once he bought software from a particular vendor, he is struck with the identical vendor. Even when the product does not meet his expectations, he doesn’t have any alteration. He’s fully depending on the same vendor for all supports.
Drawbacks to the Vendor
The vendor also has lot of problems with the old system. Each time a patch or new version is launched, he must provide help for various platforms. This in the end will increase his production and distribution cost. Since differential pricing shouldn’t be possible in this model, vendor prices the same value for every person irrespective his utilization level. Because of this user who makes use of very little options additionally ends paying more. One other problem is as a lot of the customers are technically navies the vendor must provide help at buyer places for set up and breakdowns, which improve 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 purchasers via their computer systems remotely. Consumer 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 comparable to Gold, Silver, Bronze, and many others according to the requirements and capacity of the customer. User can even select the options which he wants and pay only for the features he uses.
The seller has full control over the product; he installs upgrades and sets the features at customer desktop by distant managed procedures. This reduces the distribution cost and in addition saves a tremendous quantity of time. One other 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 seems to be comparable with its predecessor ASP, each are not the same. ASP model provided the organization to move their application to a third party server, the place as SaaS provides shared applications which will be accessed by completely different users from their desktops. The ever rising demand for SasS among the many users is because of its simplicity and the associated fee effectiveness drives more and more vendors 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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