SaaS Software as a Service, often referred to as software on-demand, is a new concept for delivering software applications with ease-of-use to consumers. Conventionally, software products have been delivered through other processes and clients were able to install these on desktops and servers. However, there were a number of disadvantages with this process for both consumers along with leading software vendors.
Disadvantages to Consumers
One of the main drawbacks for consumers is the necessity of paying full product price even when only using certain functionalities of such software. Secondly, there is the need for constantly updating these products and programs whenever newer versions or patches are released. This can impose an additional burden financially along with technical issues including backward compatibility. Another drawback is once the program or software is purchased from particular vendors, it will mean they are dependent on this one resource for support.
Disadvantage to Vendors
With the older delivery system, there were also issues regarding software vendors. For example, when patches and new versions were released there was the necessity to provide support over various platforms. Ultimately, this increases production and distribution costs. As differential pricing isn’t possible with this model, the vendor must charge the same price for all users irrespective of usage level. Another issue is that many end-users are not as technically inclined as expected, meaning the vendor must provide even more support increasing operational costs.
Advantages of SaaS Software as a Service
The SaaS Software as a Service model enables vendors to release applications and products as a service. They have more control over these as they are server hosted and utilized by clients through computers remotely. The end user is able to use the software program as a service; this is accomplished through periodical subscriptions or on a per usage basis. The vendor will provide a number of service levels based on capacity and requirement of each client. Basically, the customer is able to determine features they want.
Complete Vendor Control
The biggest advantage for vendors is the ability to install upgrades and set features through remote controlled processes. This will reduce distribution costs while saving time. Yet another advantage is that clients can use the software in real time while the vendor logs errors and notes any potential bugs that can be quickly addressed. There is an increasing demand for SaaS Software as a Service because of its cost effectiveness and simplicity.
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