Software as a Service (SaaS) can also be 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 client in CDs and the shopper 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 Customer
The main drawback within the old system is that the client needs to pay the complete price for the product even if he uses only certain functionalities of that software. Secondly, he needs to continuously replace the products each time a patch or new model is released. This imposes additional monetary burden as well as technical issues corresponding to backward compatibility. The opposite drawback is as soon as he bought software from a particular vendor, he is struck with the identical vendor. Even when the product doesn’t meet his expectations, he does not have any alteration. He’s fully depending on the identical vendor for all supports.
Drawbacks to the Vendor
The vendor additionally 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 finally increases his production and distribution cost. Since differential pricing isn’t potential in this model, vendor fees the same value for each consumer irrespective his utilization level. Attributable to this user who uses very little options additionally ends paying more. One other problem is as a lot 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 distributors to launch 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 customers by way 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 akin to Gold, Silver, Bronze, and many others according to the requirements and capacity of the customer. Consumer may select the features which he wants and pay only for the features he uses.
The vendor has full management over the product; he installs upgrades and sets the features at customer desktop by remote controlled procedures. This reduces the distribution value and in addition saves a tremendous amount of time. One other advantage is as the customer uses the software on real time he can instantly log the errors, bugs and drawback immediately and this helps the company fix them quickly. Though SaaS seems to be related 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 could be accessed by totally different customers from their desktops. The ever growing demand for SasS among the many users is because of its simplicity and the fee effectiveness drives more and more distributors in to this domain with higher products. This heralds a paradigm shift in the software delivery and adjustments the game completely.
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