I am interested in finding a business model for a software product (iprocurement). However, I got quite confused between ASP (Application Service Provider) and Saas models. What are the differences? Thanks in advance.
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A:
Though medium of delivery is the same i.e. internet, ASP takes a packaged-base approach while SaaS takes product approach. ASP provider need not be a manufacturer of the product. He can be a trader or a middleman who takes the responsibility of selling it and customising and implementing it when required. On the other hand, a system based on Saas model had been designed, built, delivered, configured and implemented normally by a single party who has total control of the system.
In case of ASP there can be multiple instances (or implementations) of a software running on a single server, suitable as per customer needs while in case of SaaS, a single software will serve to many clients allowing them to configure the service as per their requirement.