Software as a Service, also known as SaaS or on-demand software , is a way of delivering software applications to the end-user over the internet. SaaS can provide outstanding advantages for most businesses, primarily in costs and flexibility.

What is Software as a Service (SaaS)?

SaaS is a software licensing and delivery model in which software is:

Licensed on a subscription basis – usually monthly or annually

Centrally hosted in the cloud – find out more about cloud computing

Accessed via a browser over an internet connection

Resource management software

Enterprise resource planning programs

Corporate performance management suites

Mobile applications

Office and communication software

Accounting programs

Customer relationship management software

Resource management software

SaaS advantages

SaaS offers many potential advantages over the traditional models of business software installation, including:

Lower up-front cost

SaaS is generally subscription-based and has no up-front licence fees resulting in lower initial costs. The SaaS provider manages the IT infrastructure that is running the software, which brings down fees for hardware and software maintenance.

Pay per Use

Clients are not obligated to purchase a whole product. If a customer needs a piece of software for a limited period or for one purpose, he or she pays only for a particular time span. Subscriptions can be usually halted at any moment. Buyer’s risk is scaled-down to the minimum.

Quick set up and deployment

SaaS application is already installed and configured in the cloud. This minimises common delays resulting from often lengthy traditional software deployment.

Easy upgrades

The SaaS providers deal with hardware and software updates, deploying upgrades centrally to the hosted applications and removing this workload and responsibility from you.


All you need to access a SaaS application is a browser and an internet connection. This is generally available on a wide range of devices and from anywhere in the world, making SaaS more accessible than the traditional business software installation.


SaaS providers generally offer many subscription options and flexibility to change subscriptions as and when needed, eg when your business grows, or more users need to access the service.


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