SaaS

Software as a Service (SaaS) is a software delivery method that provides access to software, its functions, and subsequent updates remotely from a third party, called an Application Service Provider (ASP). SaaS applications are also sometimes called hosted applications. SaaS is a type of cloud computing service model.

SaaS is usually a more affordable means of accessing software since its pricing is based on a monthly subscription rather than a lump-sum fee paid for on-premises application licensing. These cost-effective solutions are specifically targeted toward small and medium enterprises with lean IT budgets.

Pros and cons of SaaS

SaaS applications are provided over the Internet, which can spell trouble if a user does not have Internet access, but also means they are universally compatible with any operating system and not dependent on any specific type of hardware. SaaS also alleviates the need to have dedicated IT personnel on staff who are responsible for installing, configuring, maintaining, and troubleshooting the software.

In the same vein, SaaS applications typically offer less customization than on-premises software offers. Other drawbacks to SaaS include security, ownership/control of data, and reliability; business operations are dependent on the ASP’s stability and are sometimes subject to their security vulnerabilities and data policies.

Examples of SaaS

SaaS applications have become more prevalent in recent years and the trajectory for their growth is only expected to rise. Examples of SaaS applications include:

Vangie Beal
Vangie Beal is a freelance business and technology writer covering Internet technologies and online business since the late '90s.

Top Articles

The Complete List of 1500+ Common Text Abbreviations & Acronyms

From A3 to ZZZ we list 1,559 SMS, online chat, and text abbreviations to help you translate and understand today's texting lingo. Includes Top...

Windows Operating System History & Versions

The Windows operating system (Windows OS) refers to a family of operating systems developed by Microsoft Corporation. We look at the history of Windows...

How to Create a Website Shortcut on Your Desktop

Website Shortcut on Your Desktop reviewed by Web Webster   This Webopedia guide will show you how to create a website shortcut on your desktop using...

Generations of Computers (1st to 5th)

Reviewed by Web Webster Learn about each of the 5 generations of computers and major technology developments that have led to the computing devices that...

SAP Software

SAP is an end-to-end enterprise solution provider specializing in enterprise resource...

Chief Operating Officer (COO)

The chief operating officer (COO) is a member of a company's senior executive...

Kanban

Kanban is a workflow management method intended to define, manage, and improve services...