The individual or company would subscribe to the service, access it via a web browser, and
use their CRM or chat application online. All server management, system updates, and
patches are managed by the software company itself. Vendors solely need to make the
software available to their users via an online interface, such as a web browser. This trend
changed the client-server model; where the web browser is now the client and the server is
a rich web application hosted on a backend in the data center. This model grew to be
enormously popular, as the reduction of IT headache, software maintenance, and general
software issues were no longer an in-house issue, but managed by the software vendor.
As more and more traditional software companies saw the benefits, many of them
followed the trend and began offering their traditional client-server applications online
also, noted by the Oracle/Siebel online CRM solution. Similar to advertisement and
music, software as a service was also around in Web 1.0, but it was called an Application
Service Provider (ASP). ASPs failed miserably in Web 1.0, but similar to advertisements
and music in Web 2.0, they are very healthy and strong.
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