What is SaaS (Software as a Service)?
SaaS is a cloud-based software licensing and distribution model in which software and applications are made available via the internet on a pay-as-you-go basis. SaaS replaces the traditional on-premises software model where a customer pays once for a license, plus any fees for maintenance and updates, and runs it themselves. SaaS providers develop, host, and maintain the cloud application and manage the hardware, servers, databases, and code required to deliver it.
As businesses accelerate IT modernization projects to minimize risk and cut costs, cloud computing and the as-a-service economy continue to gain momentum. Software as a service (SaaS) is the most widely adopted of the cloud computing segments. Organizations using SaaS avoid the up-front cost and complexity of owning and maintaining their own applications while knowing they’re using the most current version of the software with the newest capabilities. SaaS now delivers core business software that’s used to run operations for many of the world’s largest companies.
SaaS has existed for decades, but it’s now the preferred way for companies to purchase and use software. Although many catalysts have driven this shift, businesses favoring OpEx over CapEx, teams wanting to always have up-to-date technological capabilities, employees having pervasive internet access, and people expecting to have mobile access to their business applications have all played a major role in making SaaS the best option for many businesses—both technically and financially.
Key Takeaways
-SaaS applications are hosted centrally by a cloud provider and are made available via the internet on a pay-as-you-go basis.
-SaaS lets users access applications and data from anywhere via a browser or mobile app.
-SaaS provides the ability to react to industry and market fluctuations quickly with access to new features and technology.
-SaaS reduces the resources required to install, manage, and upgrade software.
-SaaS enables businesses to move from capital expense spending to operating expense spending that is more predictable.
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