Software as a Service (SaaS) is also known as Software on Demand. It’s the new idea to deliver the software products and its usages to the customer. Traditionally, the software products had 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 client as well as the software vendor.
Drawbacks to the Customer
The primary drawback within the old system is that the customer must pay the total price for the product even when he uses only sure functionalities of that software. Secondly, he needs to always update the products every time a patch or new model is released. This imposes additional monetary burden as well as technical issues resembling backward compatibility. The opposite drawback is once he bought software from a particular vendor, he is struck with the same vendor. Even if the product doesn’t meet his expectations, he does not have any alteration. He is fully dependent on the same vendor for all supports.
Drawbacks to the Vendor
The vendor also has lot of problems with the old system. Every time a patch or new model is released, he must provide assist for varied platforms. This in the end will increase his production and distribution cost. Since differential pricing isn’t possible in this model, vendor costs the identical price for every user irrespective his utilization level. Resulting from this user who makes use of very little options also ends paying more. Another problem is as most of the customers are technically navies the seller needs to provide assist at buyer places for installation and breakdowns, which enhance 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 used by the purchasers by way of 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 numerous service standards similar to Gold, Silver, Bronze, etc according to the requirements and capacity of the customer. Consumer also can choose the features which he needs and pay only for the features he uses.
The seller has full management over the product; he installs upgrades and sets the options at buyer desktop via distant controlled procedures. This reduces the distribution value and likewise saves a tremendous amount of time. Another 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 company fix them quickly. Though SaaS seems to be related with its predecessor ASP, both usually are not the same. ASP model provided the group to move their application to a third party server, where as SaaS provides shared applications which might be accessed by completely different customers from their desktops. The ever increasing demand for SasS among the users is because of its simplicity and the price effectiveness drives more and more distributors 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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