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Software as a Service (SaaS) is also known as Software on Demand. It's the new concept to deliver the software products and its usages to the customer. Traditionally, the software products have been delivered to the shopper in CDs and the client used to install 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 principle drawback within the old system is that the shopper needs to pay the complete worth for the product even when he makes use of only sure functionalities of that software. Secondly, he must always update the products every time a patch or new model is released. This imposes additional monetary burden as well as technical issues similar to backward compatibility. The opposite drawback is as soon as he purchased software from a particular vendor, he's struck with the same vendor. Even when the product doesn't meet his expectations, he does not have any alteration. He is fully dependent on the same vendor for all supports.  
  
Drawbacks to the Vendor  
  
The vendor also has lot of problems with the old system. Every time a patch or new model is launched, he must provide help for numerous platforms. This ultimately increases his production and distribution cost. Since differential pricing shouldn't be potential in this model, vendor prices the same worth for each person irrespective his utilization level. Resulting from this consumer who uses very little options additionally ends paying more. One other problem is as most of the customers are technically navies the vendor needs to provide help at customer places for set up 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 computers remotely. User 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 similar to Gold, Silver, Bronze, and so forth according to the requirements and capacity of the customer. Person may also choose the options which he needs and pay only for the features he uses.  
  
The seller has complete control over the product; he installs upgrades and sets the options at customer desktop by way of distant controlled procedures. This reduces the distribution price and in addition saves a tremendous amount of time. Another advantage is as the buyer makes use of the software on real time he can instantly log the errors, bugs and drawback instantly and this helps the company fix them quickly. Though SaaS seems to be comparable with its predecessor ASP, each aren't the same. ASP model provided the group to move their application to a third party server, the place as SaaS provides shared applications which can be accessed by totally different customers 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 distributors in to this domain with higher products. This heralds a paradigm shift within the software delivery and changes the game completely.  
  
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