Software as a Service (SaaS)

Software as a Service or SaaS is a specific licensing and distribution model. So, this model works on a subscription basis to deliver the software. This software is hosted centrally. SaaS is a subset of cloud computing alongside with DaaS, IaaS, and so on. A web browser is a common way to access software as a service.

Through its development history, SaaS has developed some particularities.

• SaaS sellers develop and maintain own software,
• Software as a Service relies on the web browser to let customers use it,
• SaaS product multitenant architecture, that influences a specific software distribution type.

When it comes to distribution, SaaS does not require a physical form of it. Customers simply access the SaaS distributor via any browser (e.g. Chrome, Safari) to buy a subscription and install it. So, the client receives a licensed solution to his/her particular needs.

Let’s also define SaaS’s multitenancy more detailed. Thus, the multitenant architecture means all the customers use one version of the software. Moreover, SaaS will also have the only configuration. There’s one option, though, when the vendor offers another version. The seller can develop it to give some customers access to beta versions or updated (but not released) versions.

When it comes to pricing, software as a service uses a subscription-based model. The vendor charges monthly or annually. Usually, the setup and concurrent costs of SaaS are lower compared to enterprise software.

SaaS examples are accounting, visualization, management, and other kinds of software.