On-demand software, also referred to as software-as-a-service (SaaS), is growing significantly in terms of popularity. While on-demand software is the best choice for many companies, hosted software is still a practical solution for some. In order to decide which of the two options is best for your business, you need to be able to differentiate between hosted, on-demand, and other supply chain software.
What Is On-Demand Software?
Software-as-a-service provides enterprises with access to software through the Internet. On-demand software is provided on a pay-as-you-go basis, allowing enterprises to use the software on an as-required basis. Companies are not required to purchase a license nor are they required to install it. Multiple users can access SaaS applications securely and simultaneously. In most cases, each user needs to pay a usage fee on a monthly basis. Many businesses are jumping on the on-demand software bandwagon because it is:
· Cost-effective, particularly in the short-term
· Reliable and secure
· Absolves the customer of the need to perform technical maintenance
When it comes to the on-demand model, the data for all of the customers are stored on the same database. However, of course, customers can only access their own data. Since the on-demand model consists of only one instance of the software, customization is often limited. However, users can personalize the software through system settings or profiles.
A major advantage of SaaS software is that management and installation is not necessary on the user side. Also, since on-demand software is provided via the Internet, this software can be accessed anywhere and anytime. Yet another advantage of on-demand software is that users don't need to spend time updating software manually. When new versions of the software are released, all customers receive the same updates simultaneously. Therefore, troubleshooting and on-site IT maintenance is unnecessary.
What Is Hosted Software?
While on-demand software is a service that customers pay for, hosted software is a product that the customer owns. When it comes to hosted software, every customer is treated on an individual basis. Each customer is provided an individual instance of the software, which must be accompanied with servers and databases. The hosting model involves installing the software through a hosting center. The upfront cost of installation is typically high. However, the cost of the hosting model is often lower in the long run.