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