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Software as a Service (SaaS) can 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 client in CDs and the customer used to put in them in his desktop or server. There have been many disadvantages with this system for each the shopper as well because the software vendor.  
  
Drawbacks to the Buyer  
  
The primary drawback in the old system is that the customer must pay the total value for the product even when he uses only certain functionalities of that software. Secondly, he must always update the products each time a patch or new model is released. This imposes additional monetary burden as well as technical points comparable to backward compatibility. The opposite drawback is as soon as 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 is absolutely dependent on the identical vendor for all supports.  
  
Drawbacks to the Vendor  
  
The seller also has lot of problems with the old system. Whenever a patch or new version is released, he needs to provide support for varied platforms. This ultimately will increase his production and distribution cost. Since differential pricing isn't doable in this model, vendor costs the same price for every person irrespective his utilization level. As a result of this person who uses very little options also ends paying more. One other problem is as most of the users are technically navies the seller must provide assist at customer places for set up and breakdowns, which enhance his operational cost.  
  
SaaS and its advantages  
  
SaaS model enables the vendors to launch 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 shoppers by way of their computer systems remotely. User 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 such as Gold, Silver, Bronze, and so on according to the requirements and capacity of the customer. Consumer can also choose the features which he needs and pay only for the features he uses.  
  
The vendor has full control over the product; he installs upgrades and sets the options at buyer desktop by way of remote managed procedures. This reduces the distribution value and in addition saves a tremendous quantity of time. One other advantage is because the customer uses the software on real time he can instantly log the errors, bugs and drawback immediately and this helps the corporate fix them quickly. Though SaaS seems to be related with its predecessor ASP, each should not the same. ASP model provided the group to move their application to a third party server, the place as SaaS provides shared applications which could be accessed by completely different users from their desktops. The ever rising demand for SasS among the many customers is due to 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 modifications the game completely.  
  
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