In traditional software development, companies were required to buy, build, and maintain their own IT infrastructure despite exponential costs. Even an SME needed an IT manager who was responsible for managing all type of IT-related work - installing applications, maintaining software and systems, backup management, patch management, disaster and recovery management, security systems, licensing issues, hardware procurement and upgrades. All this resulted in significant overhead for organizations of all sizes and needed a dedicated team.

Traditional software distribution, in which software is purchased and installed on PCs, is sometimes referred to as software-as-a-product (SaaP).