SaaS Development

SaaS vs ASP

Over time, vendors and customers have expressed the challenge brought about by the escalating costs of software. Similarly, the increased intricacies that come with software application have translated to hefty costs of software distribution to end-user customers.

Through Application Service Providers or ASPs, the complexities and costs involving the acquisition and implementation of software can possibly be trimmed down. Additionally, ASPs have addressed software issues relating to the software upgrades. The upgrading responsibilities that are otherwise on the end-user have been turned over to ASPs. This is because ASPs offer software services such as maintenance, updating services, 24-hour technical support as well as electronic and physical security. ASPs also support continuity and flexibility of business with respect to software implementation.

ASPs pertain to businesses which provide network-based computer services. In 2003, ASPs have market ranges in the United States with a value of between $1.5 and $4 billion. Its client base consists of government and non-government organizations and corporate businesses.
Large companies like IBM embrace the concepts of ASP as business support to specific customer levels within the company.

ASPs provide users with a special client software or HTML. Using the Web browser, users can access the software, which technically resides within the application system of a vendor. The custom software has the ability to interface to the vendor’s systems via XML APIs, which, in turn is used in the integration of in-house systems, whenever required.
 
With respect to the operation of ASPs, providers have full ownership and operation control of software applications. They also own, maintain and operate software-support servers, and provide information to their customers through the Internet.  ASPs bill their clients on a pay-per-use system, usually with monthly or yearly fees involved.

Using the ASP system, issues relating to software integration are removed from the part of the clients. Software costs relating to software application are multiplied to various clients. ASPs also assure of updated, readily available and well-managed software systems, translating to internal systems’ reliability and security.

Conversely, ASP model may pose risks and disadvantages, including client’s full reliance on an ASP for critical business functions, thereby limiting company control. Also, changes to the ASP market in the ASP market may result to changes relating to the levels or types of service offered to clients. Moreover, clients complain of difficulties in resolving problems relating to the integration of non-ASP systems of clients.

Meanwhile, Software as a service or Saas allows purchase from a third party of a Web-based software application service. In a consumer’s perspective, Saas allows users to purchase or download from the Internet, desktop application software. Customers also have the option to pay a fee on an annual basis to certain vendors like Symantec. This step keeps a system’s virus definitions updated through the Internet.

Typically, providers of Software as a Service offer Web-based software applications that are specifically designed for hosting or delivery to various customers. As a result, ASP providers assure that they provide extra features that are otherwise costly with the ASP system. With SaaS, customers are given their own case.

Prominently, SaaS is characterized by Web and network-based access to business-related software. With SaaS, third-party servers do the processing, as opposed to processes done on a customer’s location. SaaS’ pricing model is tenant-based, and is applicable for services pertaining to consultation, software, hardware and administration.

A salient feature of SaaS is that it does away with software purchase and leaving the implementation to the end-user.  In addition, SaaS providers have an application that may be less complex than the process involved in traditional software application models. In evaluating the software application, vendors simply gives access to probable customers through Web interface. In the same manner, SaaS customers may access the features and capabilities within the software. People in a company’s administrators may tweak and customize the software applications to meet the organization’s needs.

Taking the Pick

For companies that may need to host specific and customized software applications, the ASP may prove to be the better pick. ASPs also suit business organizations that outsource a majority of their Information Technology processes, such as Web site hosting and development.

On the other hand, the SaaS system fits companies with users who are geographically dispersed. Similarly, SaaS is best for companies with users who embrace mobile software application, or who are into inter- and intra-collaboration with other users. SaaS may work for companies that have no in-house application experts and developers. As SaaS eliminates regulatory and licensing compliance, it centralizes management of IT and generates reports automatically.

For many end-user clients, SaaS demonstrates quicker deployment time, subsequently resulting to attained return on investment. Compared with ASP, SaaS has the edge of incurring lower costs for customers.