Question

I am interested in finding a business model for a software product (iprocurement). However, I got quite confused between ASP (Application Service Provider) and Saas models. What are the differences? Thanks in advance.

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Solution

Though medium of delivery is the same i.e. internet, ASP takes a packaged-base approach while SaaS takes product approach. ASP provider need not be a manufacturer of the product. He can be a trader or a middleman who takes the responsibility of selling it and customising and implementing it when required. On the other hand, a system based on Saas model had been designed, built, delivered, configured and implemented normally by a single party who has total control of the system.

In case of ASP there can be multiple instances (or implementations) of a software running on a single server, suitable as per customer needs while in case of SaaS, a single software will serve to many clients allowing them to configure the service as per their requirement.

OTHER TIPS

The fundamental difference is how software is built and used. ASP follows traditional development with a twist when it comes to deployment. It is built on data centric and it is deployed as an application with a centralized host sever. SaaS is built on service centric and deployed as web services.

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