Not all Web Apps are created equal and many people don’t understand the difference between ASP vs SaaS or Software-as-a-Service.
ASP vs SaaS – What’s the difference and why is ASP a failed business model?
This post was originally written in 2009 and – while still very relevant – I suggest you also read this post for a more up-to-date take on the Business Architecture discussion: Software Vendors: The Cloud is Not Magic (but it can be very Profitable!)
The difference between Application Service Provider (ASP) and SaaS is quite significant, but since both are “hosted” the two models are often confused. ASP is much closer to Legacy Software than SaaS.