Application Service Provider Vs Software As A Service (ASP Vs SAAS)

Posted by Pon ArunKumar Ramalingam
Comments (2)
October 25th, 2007

The traditional Application Service Provider – ASP Model is overrun by the upcoming Software as a service SaaS Model. Whether it is a deployment, upgrade or maintenence project – the onshore offshore model present in leading indian software companies were growing with a lot of money inflow as a result of ASP model. But In the present scenario, the companies like salesforce, workday are providing the software on demand services with client specific customizations based on the SAAS model also. In SaaS the customer pays for the services offered by the company/vendor and the cost involved in maintaining the application in their inhouse is not necessary.
Eventhough there is a cost reduction for customers who go for software as a service model, the rise of open source components that are available in the market makes this tough. And moreover for customers who require a lot of customizations, the ASP model is still leading the chart.
Whatever the changes are,.. It seems that in the near future the world leaders in software industry will be the ones who are operating based on the demands,..based on the software as a service model.

Comments (2)

Pon ArunKumar Ramalingam - October 29th, 2007

Hey Saurabh, you started off the comment with your 'ignorance' word and infact you have added more valuable insights on the topic :-) I would like to reiterate the fact that The term 'on demand' would be misleading as it could comply to both ASP & SAAS delivery models.And moreover your items to be added to the menu card of the growing companies are also interesting. Few more citations can be looked in and : I am also eager to know what is happening with wachovia ?. It would be great if you could share the information more in detail with respect to the present day real time scenarios.

USaurabh - October 28th, 2007

I see so many different terms being used to describe SaaS and I'd like to understand your definition and get more transparent distinction between (SaaS Vs On demand service ), which i assume are different paradigms altogether.I candidly Apologise for my ignorance here. The point i am driving to is that eventhough the vendors presumes that SaaS is operating based on the demands,It eventually complements ASP and ISP's/FM's(Facility mangements services) combo and not compromise the formers. In SaaS case, "The provider gives customers remote access to an application created specifically for SaaS distribution." ,Salesforce and most recently Wachovia stands as a case study here. PLUS "The resources may be maintained within the user's enterprise, or made available by a service provider." Coming to the value propositions that the ISPs/Vendors needs to serve which each User will be expecting to leverage.These are to some extent adopted from the Legacy ASP model ,which our indian companies like INFY TCS and possibly Hexaware need to add to their Menu-Card: #Access to best-of-breed applications (Oracle, Kronos, and others),Industry Leading Tech practices(SAPone) and infrastructure from a single source. #Complete Accountability . # Reverse Compatibility. # Incremental value-add (updates, patches,Customer satisfaction surveys) on an ongoing basis that are delivered seamlessly . #The customer must be able to stop the subscription and still be operational (no vendor lock-in). and last but not the least # No Down time incase of upgrades. As the SaaS model was initially adopted by small and Midsize firms. And Now as the Giants like Oracle ,Microsoft ,Google and most recently SAP join the SaaS carnival .The Key Challenge for Saas that lies ahead is How to INTEGRATE : Data, Interface and Busines Logic altogether . This case in the point becomes even more Notoriously difficult to accommodate when it comes to Single Tenant applications,multi platforms with Cobol-driven business logic,and multi interfaces plugged in together . SaaS ,I would acknowledge in F1 Parlance is a New kid in the Block,still a rookie with one debuting good season and has a long way to GO and surely has the Vroomm to lead the charts in seasons to come and see thru many Pitstops to bequeath the legacy of Ferrari. Anticipating more citations and case studies from you in your upcoming threads on SaaS. In all an excellent topic to unleash .Way to Go!!!

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