SAO Server Activated Object (call mode): lasts the lifetime of the server. They are activated as SingleCall/Singleton objects. It makes objects stateless. A SingleCall object gets created for each request by client and A Singleton object is created once on the server and is shared by all the clients.
CAO (Client Activated Objects): CAO creates stateful objects. The object creation request is based on the request by client side. Therefore, the lifetime is based on client and not server. Single instance of object is created for every call.