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Software as a Service (SaaS) is also 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 shopper 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 because the software vendor.  
  
Drawbacks to the Customer  
  
The main drawback in the old system is that the customer needs to pay the full price for the product even when he uses only certain functionalities of that software. Secondly, he needs to always update the products each time a patch or new model is released. This imposes additional monetary burden as well as technical issues equivalent to backward compatibility. The other drawback is once he purchased software from a particular vendor, he's struck with the same vendor. Even when the product doesn't meet his expectations, he doesn't have any alteration. He's absolutely 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 version is released, he must provide support for various platforms. This in the end increases his production and distribution cost. Since differential pricing will not be doable in this model, vendor prices the same value for every user irrespective his utilization level. As a consequence of this user who uses very little features additionally ends paying more. One other problem is as most of the customers are technically navies the seller must provide assist 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 seller has complete management over the product as it is hosted by him at his server and utilized by the shoppers by way of 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 equivalent to Gold, Silver, Bronze, and so on according to the requirements and capacity of the customer. Person may also select the features which he needs and pay only for the features he uses.  
  
The vendor has full management over the product; he installs upgrades and sets the options at buyer desktop by means of remote controlled procedures. This reduces the distribution value and also saves a tremendous amount of time. Another advantage is because the customer uses the software on real time he can instantly log the errors, bugs and drawback instantly and this helps the corporate fix them quickly. Although 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, the place as SaaS provides shared applications which can be accessed by different users from their desktops. The ever growing demand for SasS among the customers 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 in the software delivery and changes the game completely.  
  
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