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Software as a Service (SaaS) is also 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 had been delivered to the client in CDs and the client used to install 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 main drawback in the old system is that the client needs to pay the total worth for the product even if he makes use of only sure functionalities of that software. Secondly, he must constantly update the products whenever a patch or new model is released. This imposes additional financial burden as well as technical points akin to backward compatibility. The opposite drawback is as soon as he purchased software from a particular vendor, he's struck with the identical vendor. Even when the product does not meet his expectations, he doesn't have any alteration. He is fully dependent on the identical vendor for all supports.  
  
Drawbacks to the Vendor  
  
The seller additionally has lot of problems with the old system. Every time a patch or new model is released, he needs to provide assist for various platforms. This ultimately increases his production and distribution cost. Since differential pricing is just not potential in this model, vendor charges the identical value for each user irrespective his utilization level. On account of this user who makes use of very little options also ends paying more. One other problem is as a lot of the users are technically navies the seller must provide support at buyer places for installation and breakdowns, which improve his operational cost.  
  
SaaS and its advantages  
  
SaaS model enables the vendors to launch the product as a service. The vendor has full control over the product as it is hosted by him at his server and utilized by the purchasers via 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 akin to Gold, Silver, Bronze, and many others according to the requirements and capacity of the customer. User can also choose 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 means of remote managed procedures. This reduces the distribution value and in addition saves a tremendous quantity of time. Another advantage is because the buyer makes use of 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, both 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 could be accessed by different users from their desktops. The ever rising demand for SasS among the users is due to its simplicity and the associated fee effectiveness drives more and more vendors 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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