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 customer in CDs and the shopper used to put in them in his desktop or server. There have been many disadvantages with this system for each the customer as well as the software vendor.
Drawbacks to the Customer
The primary drawback in the old system is that the client must pay the complete price for the product even if he makes use of only sure functionalities of that software. Secondly, he needs to always update the products whenever a patch or new model is released. This imposes additional monetary burden as well as technical issues comparable to backward compatibility. The other drawback is as soon as he purchased software from a particular vendor, he’s struck with the identical vendor. Even when the product doesn’t meet his expectations, he does not have any alteration. He’s absolutely depending on the same vendor for all supports.
Drawbacks to the Vendor
The vendor additionally has lot of problems with the old system. Whenever a patch or new model is launched, he needs to provide help for numerous platforms. This finally increases his production and distribution cost. Since differential pricing just isn’t attainable in this model, vendor costs the identical value for each person irrespective his usage level. Attributable to this user who uses very little features additionally ends paying more. Another problem is as most of the customers are technically navies the vendor needs to 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 release the product as a service. The seller has full control over the product as it is hosted by him at his server and utilized by the shoppers by means of their computers remotely. Consumer can use the software as a service, either by paying a periodical subscription or by paying as per usage. A Vendor provides various service standards comparable to Gold, Silver, Bronze, and so forth according to the requirements and capacity of the customer. Consumer also can select the options which he wants and pay only for the features he uses.
The seller has complete control over the product; he installs upgrades and sets the features at customer desktop by distant controlled procedures. This reduces the distribution cost and in addition saves a tremendous amount of time. One other advantage is because the buyer uses the software on real time he can immediately log the errors, bugs and drawback immediately and this helps the corporate fix them quickly. Although SaaS appears to be comparable with its predecessor ASP, each aren’t 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 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 higher products. This heralds a paradigm shift within the software delivery and changes the game completely.
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