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Software as a Service (SaaS) can also be known as Software on Demand. It is 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 client used to install them in his desktop or server. There were many disadvantages with this system for both the shopper as well as the software vendor.  
  
Drawbacks to the Customer  
  
The principle drawback within the old system is that the shopper must pay the full price for the product even when he makes use of only certain functionalities of that software. Secondly, he needs to continuously update the products at any time when a patch or new model is released. This imposes additional monetary burden as well as technical issues corresponding to backward compatibility. The opposite drawback is as soon as he bought software from a particular vendor, he is struck with the same vendor. Even when the product does not meet his expectations, he doesn't have any alteration. He's fully dependent on the same 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 launched, he must provide help for varied platforms. This in the end will increase his production and distribution cost. Since differential pricing shouldn't be potential in this model, vendor costs the identical value for each consumer irrespective his usage level. Attributable to this user who makes use of very little options also ends paying more. One other problem is as many of the customers are technically navies the seller must 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 control over the product as it is hosted by him at his server and utilized by the purchasers by way of their computers remotely. Consumer 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 reminiscent of Gold, Silver, Bronze, and so on according to the requirements and capacity of the customer. Person may also select the features which he wants and pay only for the features he uses.  
  
The seller has complete management over the product; he installs upgrades and sets the options at buyer desktop through distant managed procedures. This reduces the distribution cost and also saves a tremendous amount of time. One other 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. Though SaaS seems to be related with its predecessor ASP, each usually are not the same. ASP model provided the organization to move their application to a third party server, where as SaaS provides shared applications which can be accessed by completely different users from their desktops. The ever rising demand for SasS among the customers is because of its simplicity and the fee effectiveness drives more and more distributors in to this domain with higher products. This heralds a paradigm shift within the software delivery and adjustments the game completely.  
  
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