Many software vendors are already selling their products online.  Software as a Service and the Application Service Provider have often been mixed and interchanged.  SaaS vs ASP really have major differences in the way software is being availed by the customer.

ASP basically covers traditional application.  Traditional applications are applications that were originally not designed for the internet but were later modified to fit the online market.  Early online companies utilized ASP and the power of the internet to allow traditional programs to be accessed by customers and clients instead of them physically installing it on-site.  This type of delivery drastically changed the software market because ASPs were offering a pay-as-you-need-it type of pricing scheme.  The software industry was greatly shaken because now, even without much money, a person or a company could already afford a subscription-type model base.  SaaS vs ASP was still non-existent during the earlier days of the internet.  The ASP modified existing applications that were not meant for web-access and offered them for download on the web at very affordable prices.

With ASP, software was regarded as a service application instead of a product purchase and SaaS was born because of ASPs limitations based on the legacy software development.  While there may be many overlapping definitions of SaaS vs ASP, SaaS became the new model of software delivery in every type of software that were used. With SaaS, the software service was paid in a subscription basis rather than on a single payment license. 

SaaS vs ASP both are software available on-demand and on the internet and both are capable of instant activation.

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