1. Home
  2. Knowledge Base
  3. Software as a Service (SaaS) – Definition

Software as a Service (SaaS) – Definition

Software as a Service Definition

Software-as-a-Service (SaaS) refers to a software distribution model which can only be accessed through subscription. It is a software licensing model that is located on external servers but can only be accessed by individuals when they subscribe. Individual businesses who have active subscriptions can access SaaS through a web browser without the need to install the software on a computer.

SaaS is a software model that is hosted by a central base. Many companies use SaaS for diverse operational arms of the business. Software-as-a-Service is also referred to as “on-demand software.”

A Little More on What is Software As A Service (SaaS)

There are three categories of cloud computing which SaaS is one of them. The other two categories are infrastructure as a service (IaaS) and platform as a service (PaaS). SaaS is a software licensing model hosted by a third party service provider which customers can access via the internet once they subscribe. The use of compact disks was the common practise before SaaS was available. The compact disks helped companies update software on the computers and this was practically time-consuming. When SaaS was introduced, being a form of cloud-based computing, it made system updates much easier. However, using SaaS require that companies pay subscription fee before they can access it.

Advantages of Using Software-as-a-Service

The advantages of SaaS are:

  • SaaS is faster and more reliable than the traditional software licensing models.
  • This software is located on external servers, it does not live on the licensing company’s servers.
  • Customers do not need to install the software on their computers before access SaaS, they can access it through a web browser by logging into the system using a username and password.
  • SaaS is cost-effective and easy to manage.
  • Companies can schedule events, audit, manage transactions such as procurement through SaaS.

Disadvantages to Software-as-a-Service

Despite the numerous benefits of SaaS, it has certain drawbacks. The disadvantages of SaaS include;

  • The security is data stored on SaaS cannot be guaranteed since it is stored on a third party external server.
  • There is a slow speed of delivery due to slow internet connection.
  • A reduced performance when the software is being accessed from an extreme end to the location of server.
  • Some tasks, when done on SaaS require collaboration of employees from different departments and sometimes external companies.

References for “Software As A Service – SaaS




https://www.investopedia.com › Insights › Buzz & Trending


Was this article helpful?