Application Service Provider vs SaaS: the Key Differences

SAP ERP Partners | ERP Software | ERP Solution Providers | PTS Systems & Solutions

PTS Systems and Solutions logo
Application Service Provider vs SaaS: Understanding the Key Differences

Understanding the Difference between ASP vs SaaS

On a regular basis, users implement a variety of business models. They use SaaS (software as a service), PaaS (Platform as a Service), ASP (application service provider), or IaaS (Infrastructure as a Service) when operating with applications or browsing the web. The SaaS and ASP business models are often confused. As a result, we thought it would be useful to distinguish these two models today and highlight their differences.

What is SaaS?

It’s a business model in which you don’t have to buy your own hardware in order to run your app. You pay a service provider to access all of the necessary software over the internet. The vendor promises full software updates and enhancements in return.

What is an ASP?

It facilitates application access. Third-party firms host the majority of applications on a server that is accessible through the Internet or a private network, but not directly connected to the customer’s server.

The following are the key differences between SaaS and an ASP

1. Approach

The ASP approach is single-tenant, while the Saas approach is multi-tenant.

2. Solution

In ASP, each user receives a customized solution, while in SaaS, all users have access to the same functionality and capabilities. The user has control over the vendor-hosted solution in ASP and can request the type of service that is required. The provider manages, maintains, and supports the solution in SaaS. The consumer cannot claim any unique changes.

3. User data

In ASP, users can choose the jurisdiction for hosting their data, whereas in SaaS, the provider determines the data storage location

4. Cost

The main benefit of SaaS is that it is less expensive than ASP.

5. Upgrades and enhancement

In the case of ASP, upgrades and modifications are uncommon. Whereas upgrades and improvements are performed on a regular basis in SaaS.

6. SLA

In ASP, all users have the same Service Level Agreement (SLA), but in SaaS, each user has their own SLA.

PTS Systems & Solutions – The Best Application Service Provider in India

PTS System is a trusted leader in India’s application service providers, with the experience to manage all of your applications, whether they’re cloud-based, on-premises, or private.

Based on your portfolio, our technology services include expertise, approaches, and resources to assist you in determining the best path for modernizing and containerizing legacy applications and accelerating time-to-value in hybrid cloud environments.

We provides you with more than just development tools; we also help you think outside the box and stay ahead of the competition. We can assist you no matter where you are in your journey.

Connect with us at +91 9136477352 / +91 22 2087 0275 or send an email at

Follow us on other social media networks 🙂

LinkedIn |Facebook | Instagram | Twitter | YouTube | Blogs