In-house or off-the-shelf software

Application Service Provider (ASP)

SaaS

SaaS will make up 30% of the software market by 2007 and will be worth $10.7 billion by 2009

measures must be taken to ensure the security, reliability, and availability of data

provision of Service Level Agreement (SLA) guarantees, allowing customers to pay for exactly what they need

Advantages

Disdvantages

network-based access

priced on a per-user basis

application delivery that has multi-tenant architecture

activities are managed from central locations enabling customers to access applications remotely via the Web

software application distribution model

hosted by a vendor or service provider

available through a network or over the Internet

provide solutions for small to medium businesses (SMB)

provides enterprise-class product at a low cost and with less complexity

increases productivity, reduces IT costs, and upgrades software applications