How SaaS Beat ASP

When we talk about SaaS development service quite naturally the discussion involves references of ASP model. ASP was the predecessor of SaaS system. It first introduced the idea of hosted application service during 80s and 90s; before cloud computing became so popular.

In the ASP model the applications were outsourced to third-party hosting services which then licensed out the services to end-users. This system became popular during 80s and 90s but like many of the earliest systems ASP model too has its limitations which eventually led enterprises to abandon the model.

SaaS is the modernized version of hosted services. The success and acceptance of SaaS can be attributed to several factors.

  • First off the speed of internet connection has improved manifold compared to what it was during the 90s.
  • Next, cost of technological advancements has reduced significantly. It is not as expensive as it was in the 1990s to set up data center for hosted services.

The main issues that crippled ASP were:

  • High cost of building and maintaining data center which led to high cost of offered services.
  • Implementing ASP model was often a complex process and required longer time.
  • Since single ASP was used to run multiple user specific applications it couldn’t offer expertise for each application.
  • Limited options with customizations. Since the third-party hosted service has no control over the application they were unable to deploy proper customization solutions to users.
  • There was hardware compliance issues associated with ASP model as it often required software packages that were not hosted.

SaaS has eliminated many of these above mentioned limitations of old ASP model. Moreover, it has added economic advantages to adoption of hosted service.  With SaaS model often software and hardware issues are taken care of by the service provider. It allows the user to enjoy a hassle free interface to work. The out-of-the-box solutions take no time in implementation and help organizations in saving time and money. Following is a comparative study of SaaS and ASP to help you understand the differences better.

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The service providers used to deploy commercial applications from third-party development companies. Therefore, the cost advantages were much less for ASPs.The applications are developed and deployed by the service provider and therefore, are cost effective.
ASP applications were complex that required extensive training programs to master.The ready to use applications do not require extensive training and no or little technical knowledge.
It takes longer time to implement and customize applications built by a company other than the service provider.Both easy to implement and customize. Projects take shorter time to implement.
Expensive to implement and customize. It also adds up your IT budget.Available at easy pay for your use model. Further, the software and hardware requirements are often taken care of by the service provider – helping you lower your IT expenses.
Requires exclusive support of the IT team for maintaining, monitoring, customizing and integrating.Maintenance, monitoring, customization and augmentation are included in the service package.
Upgrades are infrequent and are not readily available to users.Frequent upgrades and enhancements are available to every user through the multi-tenancy platform.
Do not offer multi-tenancy scalability. The capacity of the ASP does not expand with change in demand.The applications are specifically designed to perform in multi-tenant environment.

The invention of cloud computing has made SaaS development service a plausible solution for enterprise applications. High speed internet has further paved the way for its wide acceptance. It is much improved and modernized version of ASPs.

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