Software as a Service (SaaS)
- A third-party provider hosts software that customers access over the internet via a web browser.
- Customers pay a subscription fee rather than purchasing and installing software locally.
- This model reduces upfront and maintenance costs, enables remote access, and shifts updates and infrastructure responsibility to the provider.
Definition
Section titled “Definition”Software as a service, or SaaS, refers to a software delivery model in which a software application is hosted by a third-party provider and made available to customers over the internet. Instead of purchasing and installing the software on their own systems, customers access the software through a web browser and pay a subscription fee for its use.
Explanation
Section titled “Explanation”SaaS shifts hosting, maintenance, and updates from the customer to a third-party provider. Businesses and individuals access the application through an internet connection and a web browser, eliminating the need to install software on local systems. Because the provider manages infrastructure and ongoing updates, customers avoid both the upfront purchase cost and the recurring maintenance and update costs associated with self-hosted software.
The model provides flexibility: applications can be accessed from any location with internet access, which supports remote work and collaboration across geographically distributed teams. Ease of use is improved because rolling out browser-based software to employees or individual users requires less local installation and reduces concerns about compatibility or technical maintenance; the SaaS provider handles these tasks.
Examples
Section titled “Examples”Customer Relationship Management (CRM)
Section titled “Customer Relationship Management (CRM)”CRM systems are used by businesses to manage and track their interactions with customers and potential customers. Rather than purchasing and installing a CRM software on their own systems, businesses can use a SaaS CRM system to access the software through the internet. This saves the business the upfront cost of purchasing the software, as well as the ongoing cost of maintaining and updating it. The SaaS provider handles these tasks and the business simply pays a subscription fee for access to the software.
Project Management Systems
Section titled “Project Management Systems”Project management systems are used by businesses to plan, track, and collaborate on projects. Rather than purchasing and installing a project management software on their own systems, businesses can use a SaaS project management system to access the software through the internet. This saves the business the upfront cost of purchasing the software, as well as the ongoing cost of maintaining and updating it. The SaaS provider handles these tasks and the business simply pays a subscription fee for access to the software.
Use cases
Section titled “Use cases”- Managing and tracking customer interactions using CRM systems.
- Planning, tracking, and collaborating on projects with project management systems.
- Enabling remote access and easier software rollouts for employees without local installation or heavy infrastructure management.
Related terms
Section titled “Related terms”- Customer Relationship Management (CRM)
- Project management systems
- Subscription fee
- Web browser
- Third-party provider