SaaS (Software as a Service)

What is SaaS?

Software as a Service (SaaS) is a business model where software is delivered over the internet on a subscription basis. Customers can access the software via a web browser, eliminating the need for local installations. SaaS solutions are popular due to their scalability, ease of use, and cost-effectiveness. Examples include platforms like Salesforce, Slack, and Zoom.

Advantages of SaaS

  • Scalability: Easily scale usage up or down based on business needs.
  • Lower Upfront Costs: Pay for the software on a subscription basis instead of large upfront licensing fees.
  • Automatic Updates: Receive regular updates and new features without manual installations.

Related Terms and Concepts

Cloud computing, subscription model, B2B, freemium