What is SaaS?

Software-as-a-Service, or SaaS for short, is a model in which software licenses are issued on a subscription, pay-per-use basis. In the SaaS model, the hardware for this software is also hosted outside of your company walls at a central location (SaaS – PCMag).

Working Definition

SaaS solutions can run the gamut from accounting programs to marketing automation solutions to client relationship management (CRM) system and beyond. The software applications are accessed via the Internet and are completely maintained by SaaS vendors (What is SaaS? -Software Advice).

Definition in Action

There are many benefits to adopting a SaaS model without your organization, including eliminating the price tag associated with buying enterprise level software and licenses and managing both the space and maintenance of that software with your own IT staff. But outsourcing to a third party SaaS provider, you’re essentially freeing up your internal IT team to focus on bigger picture items as well as reducing your costs.

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