Software-as-a-service ‘differs greatly from ASP model’
October 1, 2010
There are "large and importance" differences between software-as-a-service and Application Service Provider (ASP) models.
This is according to TNooz columnist Glenn Gruber, who compared the merits of both methods of accessing software applications on the internet.
He said that software-as-a-service’s advantage is that it has a consumption-based model, which allows companies to only pay for the services they use.
ASP instead offers a hosted single instance of the software and database for each user, Mr Gruber explained.
"Some say that software-as-a-service and cloud-based [applications] are somewhat akin to next gen ASP, but to me that’s like saying Neanderthals are somewhat akin to Homo sapiens," he remarked.
Earlier this month, marketing director of SAP BusinessBy Design Rahul Asthana wrote a column for TMCNet about software-as-a-service applications.
He claimed that they allow small businesses to compete with larger firms due to their scalability.