SaaS ON DEMAND

SaaS is closely related to the ASP (application service provider) and On Demand Computing software delivery models. IDC identifies two slightly different delivery models for SaaS. The hosted application management (hosted AM) model is similar to ASP: a provider hosts commercially available software for customers and delivers it over the Web. In the software on demand model, the provider gives customers network-based access to a single copy of an application created specifically for SaaS distribution. IDC predicts that SaaS will make up 30 percent of the software market by 2007 and will be worth $10.7 billion by 2009.