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 ASP model offers the solution personalized for every user. It provides each customer with the dedicated installation. 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.
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.
Overall, between SaaS vs ASP, an application designed and created specifically as a SaaS offering is safer if you want to use a web-based application, as it will also be easy to scale without incurring further costs. See the original article here.
Thanks for visiting DZone today,. Edit Profile. Sign Out View Profile. Over 2 million developers have joined DZone. Like 1. Join the DZone community and get the full member experience. Join For Free. The following are 5 subcategories of ASPs: Enterprise ASPs — deliver not only high-end business applications, but also broad spectrum solutions Specialist ASPs — provide application to meet a specific business need, such as human resources, Web site services, credit card payment processing, etc.
A good example is PayPal Vertical Market ASPs — offer support to a particular industry, delivering a solution package for a certain type of customer, such as dental practice or healthcare in general. However, ASP is a failed model because of the following reasons: It lacks scalability for the vendor No inbuilt aggregation of data Too much customization Generally a single revenue model No network effect data for collection and aggregation While there are some vendors who have found success with ASP model, this success has been limited due to issues of scalability and customization between systems.
Always Up-to-Date With a SaaS offering, the software you are using will always be the most current, as your software providers always apply regular updates, maintenance, and latest enhancements.
Conclusion Between SaaS and ASP, the reality on the ground is that single-tenant applications, such as those in ASP models, are not architected properly to support the demanding business requirements surrounding the SaaS business architect. So if I could steal a few moments of your time to explain where these terms actually fit. While ASP was basically what was done in the early days with terminals before personal computers, it came back in a big way with more advanced applications and leveraging the convenience of PCs.
Essentially in ASP the customer end-user owns likely leases a license to the application. Instead of it being installed on their machines they remote into the application and use it.
Examples include Google Docs. The primary difference between ASP and the others is the licensing, and how the license to use the software is owned by the end-user or customer. From what I can tell SaaS in implementation is the most common of the three. In SaaS the customer does not own the license to the software but they purchase a right to use it on an as needed basis.
The customer chooses a provider that has a services that solves their current need. For example converting images to text via OCR. The customer would upload documents to the provider, and download a result. The customer is paying either a per usage fee, per storage fee, or a monthly service fee.
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