Software as a Service (SaaS) is also 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 shopper in CDs and the shopper used to install them in his desktop or server. There were many disadvantages with this system for each the shopper as well because the software vendor.
Drawbacks to the Buyer
The principle drawback in the old system is that the client needs to pay the total value for the product even if he makes use of only certain functionalities of that software. Secondly, he must constantly replace 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 opposite drawback is as soon as he purchased software from a particular vendor, he is struck with the identical vendor. Even when the product does not 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 seller also has lot of problems with the old system. At any time when a patch or new version is launched, he must provide help for numerous platforms. This in the end increases his production and distribution cost. Since differential pricing just isn’t doable in this model, vendor charges the same value for every person irrespective his usage level. Because of this person who makes use of very little features additionally ends paying more. One other problem is as most of the users are technically navies the vendor needs to provide assist at buyer places for set up and breakdowns, which increase his operational cost.
SaaS and its advantages
SaaS model enables the vendors to launch 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 purchasers via 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. Person may choose the features which he needs and pay only for the options he uses.
The vendor has complete management over the product; he installs upgrades and sets the options at customer desktop through remote controlled procedures. This reduces the distribution cost and also saves a tremendous amount of time. One other advantage is because the customer uses the software on real time he can immediately log the errors, bugs and drawback instantly and this helps the company fix them quickly. Though SaaS appears to be related with its predecessor ASP, each aren’t the same. ASP model provided the organization to move their application to a third party server, where as SaaS provides shared applications which may be accessed by different users from their desktops. The ever growing demand for SasS among the users is because of its simplicity and the fee effectiveness drives more and more vendors in to this domain with better products. This heralds a paradigm shift in the software delivery and adjustments the game completely.
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