Software update services updating drivers

This is consistent with the traditional rationale for outsourcing IT systems, which involves applying economies of scale to application operation, i.e., an outside service provider may be able to offer better, cheaper, more reliable applications.The vast majority of Saa S solutions are based on a multitenant architecture.

Although an exception rather than the norm, some Saa S solutions do not use multitenancy, or use other mechanisms—such as virtualization—to cost-effectively manage a large number of customers in place of multitenancy.The term "Software as a Service" (Saa S) is considered to be part of the nomenclature of cloud computing, along with Infrastructure as a Service (Iaa S), Platform as a Service (Paa S), Desktop as a Service (Daa S), Centralized hosting of business applications dates back to the 1960s.Starting in that decade, IBM and other mainframe providers conducted a service bureau business, often referred to as time-sharing or utility computing.ASPs provided businesses with the service of hosting and managing specialized business applications, with the goal of reducing costs through central administration and through the solution provider's specialization in a particular business application.

Two of the world's pioneers and largest ASPs were USI, which was headquartered in the Washington, DC area, and Futurelink Corporation, headquartered in Irvine, California.

In some cases, a second version of the application is set up to offer a select group of customers with access to pre-release versions of the applications (e.g., a beta version) for testing purposes.