SaaS loosely defined in many ways Software as a Service or Storage as a Service or Some tech-S as a service. Why is it suddenly so important service model? What happened to ASPs, the so called Application Service Providers.
SaaS is a service offered by some hosting companies where they run software on your behalf and show results of it. Well, don't we already have companies doing it for us? like email service from gmail or yahoo or photo sharing sites from picasso. The difference is that we are talking about enterprise applications for enterprise-class customers. The enterprises love to control over their information within their physical boundaries. Not true anymore! if a cool startup wants to start database application and provide API to a enterprise to create, search their version of database, that is possible with SaaS.
SaaS wants to take Industry to where ASPs couldn't. The main difference between as I understand is that ASP is much more customized version for client, where as SaaS exploits commanlity among clients usage of application software or service and could potentially share the same application instance.
SaaS is directly targeting IT costs (installation, operational, and managerial) of IT assets. A service can be "pay-as you-go" model. This model gives flexibility in allocating IT budgets. Enterprises love control over the budget, but security is concern. Despite claims made using the technical buzzwords, SaaS is weak on security. The data is stored and transmitted outside the walls of corporation and with service provider. There is no guarantee that secuirty can't be breached. However with some sense of strict regulation and policies, the security breaches can be mitigated but can not be avoided.
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