SaaS refers to software that is owned, delivered and managed remotely by one or more providers. Also known as “on-demand software,” SaaS applications are cloud-based and delivered to users online via a web browser.
Some key characteristics of SaaS include:
- Hosted in the cloud: SaaS providers manage and control the backend infrastructure and platforms that power the application. This infrastructure is housed in secure data centers.
- Accessible from any device: As long as users have an internet connection and a compatible web browser, they can access SaaS applications from any device, including desktops, laptops, tablets and mobile phones.
- Pay as you go: SaaS uses a subscription-based payment model, with customers paying regularly (usually monthly) to use the software. This eliminates heavy upfront costs.
- Automatic updates: SaaS providers seamlessly handle application maintenance, upgrades and updates in the backend without involving users.
- Scalable usage: SaaS enables flexible scaling up or down as an organization’s user and storage needs change over time.
Popular SaaS applications today include Microsoft 365, Salesforce CRM, Google Workspace and accounting software like QuickBooks Online. SaaS delivery has transformed how enterprises access and use business software.