This link has been bookmarked by 1 people . It was first bookmarked on 24 Sep 2008, by Bill H.
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24 Sep 08
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SaaS is a more modular approach
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The one real difference that I sometimes hear in usage is that ASP often entailed the service provider maintaining a significant (and sometimes dedicated) hosting operation. SAAS often means that the environment in which the software runs is shared between clients and/or virtualized.
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Software as a Service offerings are architected as multi-tenant, where the SaaS provider offers a common feature set available to all customers (with potentially different tiered offerings).
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ASPs (Application Service Providers) offer single-tenant (single instance of an application) per customer where the feature set may be unique to the customer
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SP as 1st generation and SaaS as 2nd generation.
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a SaaS provider is the so called Multitenancy architecture
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it depends on your perspective.
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an end-user I probably would not know or care to know the difference between an ASP or SaaS application
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ASP is provided on a 'one to one' model
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In SaaS on the other hand, the application (and usually the data storage) is multi-tenant
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Since ASP is in the one to one model, there are fewer opportunities for economies of scale
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Profitability (for the provider) would generally be a factor of different sources of revenue like subscriptions, services, customizations, and support offset by the higher operating costs
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In a SaaS model, revenues are driven by subscriptions and profitability is driven by economies of scale and operational efficiencies
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