SaaS vs ASP

Everyday users operate through various business models. They are using SaaS, PaaS, ASP or IaaS while working with the applications or web searching.
The SaaS business model is often confused with the ASP one. That is why, today we will distinguish these two models and make their differences clear.

What is SaaS?
SaaS is a term that means software as a service. It is a business model which implies that you don’t need to buy your own hardware for your application. You get all the necessary software via the internet by paying to a provider. The provider, in turn, guarantees full software maintenance and upgrade.
The latest Oracle Top Ten Cloud Predictions 2019 have shown that the IT world is going to change a lot in the next 6 years. The studies indicate that by 2025 80% of all enterprise workloads will move to the cloud. It means that the SaaS model will become in use even more than today.

What is ASP?
ASP is a term that stands for application service providers. It is a business model which presupposes providing computer-based services that give access to applications through the internet or private network. Typically the third party companies hosts an application. That means that the application itself is not linked to a software provider.
The ASP business model may be a reasonable choice for small and medium-sized businesses. They can get the necessary software, technical support, security and service maintenance.

The main differences between ASP and SaaS
The main distinction between ASP and SaaS lies in its architecture. The ASP model offers the solution personalized for every user. It provides each customer with the dedicated installation. The user of SaaS model, for its part, doesn’t pay for the application access. The customer buys specific business functions.
The SaaS model is multi-tenant. That means that each customer gets the same version of the application. All its features and upgrades are free and comes as a part of the subscription service.
It is worth mentioning, that ASP allows user to choose the jurisdiction its data is hosted under. The SaaS model presupposes that the user data is hosted under jurisdiction chosen by the provider. Moreover, the ASP user can buy the software from any third-party supplier and host it wherever he or she wants. The SaaS user can’t do this.
While the ASP user may demand the clear-cut services needed, SaaS is managed and fully supported by the provider. The ASP cost estimation comes from the specific needs of the customer. However, typically, the cost of SaaS is lower.
The ASP model is rather time-consuming to customize. And it doesn’t come with frequent updates and enhancements. Meanwhile, SaaS is available right after signing up and provides for frequent updates.

Confusion between terms
There is a common perception that the SaaS model is just a renamed ASP. Some consider that ASP is just an old term for SaaS. But, as is seen from above, those are false assumptions. These are two independent business models used for different purposes. We believe that our article revealed to you the substantial differences between them.
You can find out more about the differences by reading the full article - https://spdload.com/blog/asp-model-vs-saas-model/