Difference between SaaS and SaaS 2

SaaS vs SaaS 2

Software As A Service (SaaS) is a cloud software distribution model wherein the vendors or service providers host applications and are made available to the customers over some kind of a network, typically the Internet. In short, under SaaS model, Software is deployed as a hosted service rather than the conventional “on premise” approach. SaaS 2.0 is the next evolutionary phase of the conventional SaaS which concentrates more on delivering a service provisioning platform towards integrated business. SaaS 2.0 is conceived to fundamentally change the understanding of SaaS from just a distributed software delivery platform to a model that provides a management platform with integrated advanced SOA (Service Oriented Architecture) and business process management.


SaaS brings in with it the distributed software model which primarily changes the way in which applications were deployed and used across the enterprise. The conventional software deployment model involves software acquisition, licensing, equipment purchase or hire, etc. This increases the overall cost of software deployment with increased support time, management complexities and piracy issues. SaaS allows vendors or applications service provides to host the application on their servers with companies intending to use the applications, only paying for the application usage. Vendors do not have to worry about piracy issues and clients are relieved of the software and license management. Service level improvements along with subscription and pay as you go options allow for high ROI and low overheads. The SaaS model also provides for rapid implementation and customized software delivery depending upon the need of the clients. SaaS 1.0 is about bringing rapid software deployment on the table.

SaaS 2.0

SaaS 2.0 is an evolution from the basic SaaS which focuses more on the business processes and workflow of the enterprise rather than just the software delivery of reduced cost. SaaS 2.0 intends to provide for a more robust infrastructure and application platform delivery which is basically driven by improved Service Level Agreements (SLAs). SaaS 2.0 concentrates more on the business objectives of the clients rather than just the software delivery as in SaaS 1.0. With addition of more and more applications on the cloud, SaaS 2.0 will be concentration more towards projecting SaaS Intregation Platforms (SIPs) as more or less “hubs” that would provide not only the software delivery, but providing the integration, delivery and management of services as a whole. SaaS 2.0 concentration more on the fact that SaaS is not just a means of cost-effective software delivery but has the potential of transforming the manner in which enterprises conduct their business and manage the workflow. SaaS 2.0 is about bringing a change to the business and enablement of new business opportunities. SaaS 2.0 is about changing business platforms as a whole and not just about technology.

Difference between SaaS and SaaS 2

Both the models, that is SaaS and SaaS 2.0, do concentrate on software as a service but the fundamental difference between the two is that SaaS concentration more on the technology aspect of software and application delivery while SaaS 2.0 is more on the lines of delivery of business management platforms. Other differences are:

1. SaaS 1.0 is about rapid software delivery, while SaaS 2.0 is beyond SaaS 1.0 with focus on business processes and workflow management.

2. SaaS 1.0 provide basic level of software and data integration while SaaS 2.0 brings in application delivery along with sharing and management services.