Software as a Service (SaaS) is also known as Software on Demand. It’s the new concept to deliver the software products and its usages to the customer. Traditionally, the software products were delivered to the shopper in CDs and the customer used to install them in his desktop or server. There were many disadvantages with this system for each the client as well as the software vendor.
Drawbacks to the Customer
The principle drawback within the old system is that the client needs to pay the full price for the product even if he makes use of only sure functionalities of that software. Secondly, he must constantly replace the products at any time when a patch or new version is released. This imposes additional monetary burden as well as technical issues comparable to backward compatibility. The other drawback is once he bought software from a particular vendor, he is struck with the same vendor. Even if the product does not meet his expectations, he doesn’t have any alteration. He is totally depending on the identical 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 model is released, he must provide assist for various platforms. This ultimately will increase his production and distribution cost. Since differential pricing is not potential in this model, vendor expenses the identical price for every user irrespective his utilization level. Due to this user who makes use of very little features also ends paying more. Another problem is as most of the customers are technically navies the seller must provide assist at buyer places for installation and breakdowns, which increase his operational cost.
SaaS and its advantages
SaaS model enables the vendors to launch the product as a service. The seller has complete management over the product as it is hosted by him at his server and used by the shoppers through their computer systems remotely. Person 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 such as Gold, Silver, Bronze, and so on according to the requirements and capacity of the customer. Consumer also can choose the options which he needs and pay only for the features he uses.
The seller has full control over the product; he installs upgrades and sets the options at buyer desktop by means of distant controlled procedures. This reduces the distribution cost and in addition saves a tremendous amount of time. One other advantage is because the buyer makes use of the software on real time he can instantly log the errors, bugs and drawback instantly and this helps the corporate fix them quickly. Although SaaS seems to be related with its predecessor ASP, both usually 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 might be accessed by completely different customers from their desktops. The ever growing demand for SasS among the customers 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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