We are currently living in a period of rapid evolution in the way that hosted infrastructure is used to deliver software to the end-user. In the past few years we have seen this described variously as: Hosted Applications, Application Service Provision (ASP), Software-as-Service (SaaS) and Cloud Computing.
In essence these technologies have had the same principle at their cores:
The remote use of applications based on hosted servers that are either cheaper, more reliable, more feature rich or more easily managed that the traditional in-house, client-server application model.
The question we are most commonly asked is really, without all the smoke and mirrors, what are the benefits of Cloud-based applications?
The table below shows the core differences, and thus benefits, of Cloud Applications over the previous models for delivering software:
| Application Hosting | ASP | SaaS | Cloud | ||
| Central hosting | ![]() |
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| Access anytime anywhere | ![]() |
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| Central administration | ![]() |
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| Per-user-per-month charging | ![]() |
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| Scalability | ![]() |
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| Easy Scalability | ![]() |
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| Built-in High Availability | ![]() |
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| Virtualisation-based | ![]() |
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| Hybrid integration | ![]() |
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| Service development platform | ![]() |
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| Multi-service platform | ![]() |
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| Utility charging model | ![]() |
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So, in summary, the key evolutions that Cloud Computing offers over the Software-as-a-Service model, from an application delivery perspective is this:


