Difference between the ASP Model and the SaaS ... …

1 Difference between the ASPM odel and the SaaS ModelLuitBizEmail: +91 80 42061217 Difference between ASP & SaaS ModelsThe Application Service Provider (ASP) Model became popular in the late 1990s with the emergence of the firstwave of Internet enabled application. An ASP company would license a commercial software application or assumeanother company s license as its own. It would then host the application in its secure centrally located servers. TheASP would then license the application to multiple customers. They would sometimes customize versions of theapplication and provide it as a hosted service to the customer at a lower cost of ownershipHowever, the ASPs soon discovered that the cost of customizing and maintaining modified versionsof commercial applications was much greater than they had initially anticipated.

2 ASPs did not havecontrol over the features and development of the commercial applications that they were they were not able to deploy the customized product effectively. Many of the ASP customers,who had moved their mission critical applications to the ASP Model , soon discovered the ASP lackeddomain knowledge to effectively customize the applications to their needs. Additionally, thesecustomers also found out that the associated fees for customization charged by the ASP were result of the ASP Model was that the cost and innovation benefitswere very SaaS (Software-as-a-Service) modelrefers to an application that is comprisedof a single, integrated code base that isdelivered as a service to multiple customerssimultaneously, and securely, via theInternet. Additional capacity, users, add-oncomponents, or features can be ordered bythe customer.

3 These needs will be fulfilledwithout the technical or licensing barrierscommon to installed software. A recentsurvey of US IT executives by McKinsey &Co. (McKinsey on IT, Summer 2006 issue) found that only two new technologies wereviewed as highly promising tools forobtaining real business benefits one result of the SaaS Model , a costeffective Internet based service offeredwith a low-entry, zero infrastructureand low customization cost byproviders who have complete domainknowledge about the is a clear market directiontoward the use of SaaS for providingon-demand application services. Thisis especially true in the SMBmarketplace that can use the SaaSmodel to become more nimble inadapting to changes in the market andto implementing changes in theirbusinesses to be more competitiveand between ASP & SaaS ModelsThe main differences between the ASP and SaaS models are provided in the table below:Application Service Provider (ASP)Software-as-a-Service (SaaS)ApplicationDeploymentBorrowed.

4 ASPs deployed commercialapplications from other companies becauseof which the cost advantage was low andcustomization capabilities were limitedBuilt. Software is developed bythe SaaS vendor from ground upand the cost advantage ismaximumImplementationTimeLong. Lengthy cycle to install and customizea commercial application built by some othercompanyImmediate. Availability for all paidcustomers on demand withinspecific time limitsUsabilityDifficult. Customized version of an alreadycomplex system requires a lot of training andorientationEasy. Internet based SaaSapplications bank on their intuitiveusability and claim that users canstart using the system within notimeApplicationDesignsMonolithic client-server programs. ASP-supported applications were monolithic client-server programs with simple HTML to use web basedprograms.

5 Today s modernSaaS solutions, however, aredesigned for the Webenvironment, which improvesusability and and time consumingInexpensiveIT SupportExclusive. Internal monitoring, dependingon the degree of customization andintegration, added maintenance requirementsInclusive. Included as part ofserviceDifference between ASP & SaaS ModelsApplication Service Provider (ASP)Software-as-a-Service (SaaS)Upgrades andEnhancementsOften. Best practices and ideasare incorporated asenhancements. Since nosoftware is deployed on thecustomer site, enhancementsmay be implemented at the SaaSdata center and made availableto the entire user community;configuration settings allow clientsto adopt or reject these changesdepending on their needsInfrequent. Since ASPs often depend oncommercial software providers, their abilityto upgrade the application was were deployed whenever the coreapplication supplier issued them, usually oncea year or less.

6 Lack of multi-tenancy madesingle instance upgrades Each customer application is maintainedwithin the ASP s environment; no way to scaleacross Applications are designedfrom the ground up to be used ina multi-tenant environment,Systems are configurable soeach customer can have acustom experience, yet the codebase is disparate and ismaintained and enhanced for thebenefit of all the customersMarketAcceptanceLess. ASP vendors rushed their offeringsto market before performance, security,customization and integration issues weresolved, and before many IT organizationswere ready to adopt the ASP Today, both IT and businessusers are better equipped to takeadvantage of SaaS as ITexperience with Web-based andservices-oriented technologies isimproving, and business needssuch as compliance legislation areproviding the momentum forcompanies to adopt an SaaSapproachDifference between ASP & SaaS ModelsApplication Service Provider (ASP)Software-as-a-Service (SaaS)HardwareComplianceEasy: Most SaaS products arepurpose-built for the Internet.

7 AlsoSaaS hosting hardware isdeveloped for use on the InternetMarket TimingOn time: Today due to theincrease in the speed ofbroadband Internet connection,it is possible to move data fastand with ease over the InternetDifficult: An ASP would take a softwarepackage that was not written to be hostedand put it on the Web. This often causedhardware compliance of its time: The ASP Model was a bitahead of its time as Internet broadbandspeeds were very lowContact InformationLuit Infotech Private LimitedEmail: +91 80 4206 1217 Website: document has been prepared by LuitBiz - the easiest and most feature rich SaaS businessapplications software that is completely responsive. LuitBiz has ERP, CRM (Sales, Marketing, Support,Contacts & Customer Portal), HRM (end-to-end), Employee Self Service (ESS), Document Management(DMS), Business Process Management (BPM) and Corporate Communication free no obligation trial of LuitBiz is available at Business users can try out thisfree trial to understand the usefulness and ease of use of SaaS LuitBiz For FREEC lick Her