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WHAT IS SAAS?

Software as a service (SaaS, typically pronounced 'sass') is a model of software deployment whereby a provider licenses an application to customers for use as a service on demand. SaaS software vendors may host the application on their own web servers or download the application to the consumer device, disabling it after use or after the on-demand contract expires. The on-demand function may be handled internally to share licenses within a firm or by a third-party application service provider (ASP) sharing licenses between firms.

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SAAS KEY POINTS

  • SaaS is a software deployment model in which an enterprise application is delivered & managed as a service by a vendor to meet the needs of multiple customers simultaneously

  • SaaS solutions are delivered via a network, most often the Web

  • SaaS solutions are priced on a subscription service basis, often based on the number of users or seats

  • SaaS model shifts the burden of an enterprise application up and running from the customer to the vendor

  • Users can leverage the software functionality without the burden of deploying and managing the software themselves

  • SaaS eliminates the costs and complexities of deploying additional hardware and software, or dedicating additional staff to support the enterprise application on an ongoing basis.

  • SaaS model enables customers to benefit from the vendor's latest technological features without the disruptions and costs associated with software updates and upgrades.

THE SAAS SCHEMATIC

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