Software as a Service

  • Formal
  • A subscription-based model where a monthly fee is charged for using software, rather than an upfront purchase. Software as a Service (SaaS) allows organizations to access business functionality at a cost typically less than paying for licensed applications.
  • Practical
  • Software as a Service allows organizations to access business functionality at a cost typically less than paying for licensed applications since SaaS pricing is based on a monthly fee. Also, because the software is hosted remotely, users don't need to invest in additional hardware. Software as a Service removes the need for organizations to handle the installation, set-up and often daily upkeep and maintenance. Software as a Service may also be referred to as simply hosted applications.

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