What Is SaaS?
2026-10-27
Software can either be installed locally or accessed through a subscription from a cloud provider. The latter approach is known as SaaS, or Software as a Service. It allows customers to avoid deploying and maintaining their own complex hardware and software infrastructure and focus instead on the functionality of the applications they need.
The SaaS model is now used across virtually every industry, and demand continues to grow in both the consumer and enterprise sectors. On the one hand, it is highly convenient: users can start using a service or discontinue it at any time, without capital expenditure, lengthy planning, or the need to build an entire supporting ecosystem.
On the other hand, Software as a Service also has its drawbacks. For example, customers generally have less control over applications and data than they would with an on-premises deployment. In addition, an on-demand model can sometimes become more expensive than a local deployment when used by many people over an extended period.