Software as a Service (SaaS) is also known as On-Demand Software. This is a new concept for delivering software products and their use to customers.
Traditionally, software products are sent to customers on CDs and customers use them to install them on their desktop or server. There are many disadvantages to this system for customers and software vendors. If you want to know more about SAAS application, then you can visit www.bonanza.design.
Losses to Customers
The main drawback in the old system is that the customer needs to pay full price for the product even if he only uses certain functionality of that software. Second, it must continue to update products whenever patches or new versions are released.
This imposes additional financial burdens as well as technical issues such as backwards compatibility. Another disadvantage is that once he buys software from a particular vendor, he is surprised by the same vendor.
Even if the product doesn't meet his expectations, he doesn't have any changes. It completely depends on the same vendor for all support.
Loss for Vendors
Vendors also have many problems with the old system. Every time a patch or new version is released, it needs to provide support for various platforms. This in turn increases production and distribution costs.
Because differential pricing is not possible in this model, vendors charge the same price to each user regardless of the level of usage.