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ITMJ: What key differences do you see in software as a service (SAAS) as compared with the older ASP (application service provider) model?

Chandrasekhar: SAAS and ASP are basically just different acronyms that mean the same thing. The main difference is we have now had over six years to become wiser about what works and what doesn't. The most common misconception is that placing a Web application in a data center equals SAAS. The reality is that an array of business processes need to be automated in order to make the SAAS delivery model work. Contrary to the late '90s, SAAS companies today are now thinking through the issues of multi-tenancy, SLAs, security, user management, provisioning, and integration with existing systems during the design phase, versus waiting until they reach substantial customer adoption, which is too late.