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What is Software as a Service?

Software as a Service (SaaS) refers to the software licensing and distribution model in which software and applications are made accessible as an integrated service by a third-party provider. In the SaaS model, the service provider hosts the applications and related data on the cloud and delivers them to the customers over the Internet. It is one of the three main categories of cloud computing services. The other two categories are Infrastructure as a Service (IaaS) [link to #5.5] and Platform as a Service (PaaS) [link to #6.5]. SaaS is also known as “on-demand software.” 

Points to Remember

  • SaaS eliminates the need for organisations to spend on licensing, installation and troubleshooting of software, along with acquiring, integrating and maintaining the hardware needed to run these applications.
  • The SaaS model is commonly sought for its scalability, availability, and flexible payment options. Since software and application are hosted on data centres, users can easily access them anywhere via an Internet-enabled device. Customers can subscribe to these services under the pay-as-you-go model and end the subscription if the services are no longer required.