The next big thing on the Web Software as a service (SaaS) is a new concept which came into the picture in the year 2000/2001. It is an SADM (Software Application Delivery model) in which the vendor instead of creating a desktop software; develops a web application with the similar functionalities and hosts it. The customers will be able to access the software through the Web and use it from anywhere (because there is no installation involved, like E-Mail) Instead of buying and installing it in his/her desktop, from the vendor he can just subscribe for it and use it when he wants and where he wants. The main characteristics of SaaS include • Users can have access to the software from anywhere, because it is a web service. (Just like E-Mail) • The price of application is much cheaper since it is based on the usage. More details about pricing models are furnished below. • Can be used as a medium to test the software online before buying a full fledged PC version of the same software. (Not the actual purpose, of course) • Upgradation or version change will not affect the user because everything is done by the company on the server where it is hosted and the user is relieved the burden of downloading updates and installing them. Licensing Models Software as a Service licensing options includes subscription-based, usage-based, transaction-based, value based and fixed-fee models. 1. Subscription-Based Model: Monthly payment is calculated on the software actually used, and includes a commitment as to the actual number of users. Subscriptions are usually written on a per-seat or named user basis. 2. Usage-Based Model: Payment is determined by application usage and is typically related to peak or near peak levels of usage. Payment may be tied to the number of CPUs (customers are charged for every computer that runs the hosted application). It may also be a written for number of concurrent users. 3. Transaction-Based Model: ASPs that provide online scheduling and similar products sometimes charge customers for each business transaction: purchasing one introductory relational database class is one service, two classes are two services, and so on. 4. Value-Based (a.k.a. Shared Risk or Revenue) Model: Premised on the provision of whatever software is needed to achieve business goals, and payment is linked to the achievement of those goals. 5. The Fixed-Fee Model: An emerging option, users generally pay a predetermined monthly fee based on number of users supported, which application modules are rented and service and support levels specified by the customer. Real time Examples of SaaS Adobe Photoshop Photoshop is a popular photo-editing tool with a various number of advanced functionalities. It is used to do complex image transformations and is mostly used by Photo Studios and professional photographers. Visit www.photoshop.com for more details on the software. Do you know the price of the latest version of the software? $999!!! And there is an online version of Photoshop too. (The SaaS version) Check it out here - www.photoshop.com/express, although it lacks the complete functionality of the PC version, it is more than enough to do quite a number of transformations. And that too for FREE!!!