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Software as a Service (SaaS) can also be 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 were delivered to the customer in CDs and the customer used to install them in his desktop or server. There were many disadvantages with this system for both the client as well because the software vendor.  
  
Drawbacks to the Buyer  
  
The principle drawback in the old system is that the shopper must pay the complete value for the product even if he makes use of only certain functionalities of that software. Secondly, he must continuously replace the products whenever a patch or new model is released. This imposes additional financial burden as well as technical points equivalent to backward compatibility. The other drawback is once he purchased software from a particular vendor, he is struck with the same vendor. Even if the product does not meet his expectations, he does not have any alteration. He's absolutely dependent on the identical vendor for all supports.  
  
Drawbacks to the Vendor  
  
The seller additionally has lot of problems with the old system. Each time a patch or new version is released, he needs to provide help for numerous platforms. This ultimately will increase his production and distribution cost. Since differential pricing isn't doable in this model, vendor costs the identical worth for every person irrespective his usage level. As a result of this consumer who uses very little features additionally ends paying more. Another problem is as a lot of the customers are technically navies the seller needs to provide help at customer places for installation and breakdowns, which improve his operational cost.  
  
SaaS and its advantages  
  
SaaS model enables the vendors to release the product as a service. The vendor has full management over the product as it is hosted by him at his server and used by the shoppers by means of their computers 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 corresponding to Gold, Silver, Bronze, and so forth according to the requirements and capacity of the customer. User also can select the features which he needs and pay only for the features he uses.  
  
The seller has complete management over the product; he installs upgrades and sets the features at buyer desktop by remote controlled procedures. This reduces the distribution value and also saves a tremendous amount of time. Another advantage is as the customer 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 appears to be similar with its predecessor ASP, each are usually not the same. ASP model provided the group to move their application to a third party server, where as SaaS provides shared applications which will be accessed by different users from their desktops. The ever rising demand for SasS among the many customers is because of its simplicity and the cost effectiveness drives more and more distributors 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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