Software-as-a-Service (SaaS) is a software delivery model in which application software is delivered to users via a web browser. Users do not buy the license for the software, but only a right to use it on a subscription basis. A user may subscribe to all the features/functionalities of the software or just a portion of them. Also SaaS can be defined as the SaaS model as on-demand software and/or on-demand application.
The key characteristics of SaaS are:
The software application is not owned by the customer, and is only ented for use.
The software resides on a central server and not on the customer’s computer.
The user accesses the application via a web browser and the SaaS provider is responsible for software maintenance and performance.
The primary value delivered by SaaS is the continuous and ongoing support for the application by the service provider.
Network-based access allows maintenance, support and upgrades to the software from the provider’s data center.
The SaaS provider is 100% responsible for the maintenance and upgrade of the software.
The architecture, management and pricing of the application mimic the one-to-many model rather than the one-to-one model.
Enterprise software delivered as SaaS include business applications such as customer relationship management (CRM), web conferencing and collaboration applications, HR applications like talent management and payroll, enterprise resource management (ERM) applications like ERP, supply chain management (SCM), product lifecycle management (PLM) and so on.
We should exclude software applications or services aimed mainly at the consumer market. While online companies like Yahoo and Google also deliver software as a service, we have excluded them for two reasons: a) those services are mostly used by consumers, which is a distinct market with unique characteristics and, b) their revenue is not exclusively derived from selling software services, but often provided for free or subsidized by advertising.
Also need to exclude the business of application hosting from the scope of SaaS definition since the model does not meet definition of SaaS. In the application hosting model, the customer has to pay for the software license.
The customer therefore owns the software application and is responsible for upgrades and maintenance.
Software-as-a-Service (SaaS) is a software delivery model in which application software is delivered to users via a web browser. Users do not buy the license for the software, but only a right to use it on a subscription basis. A user may subscribe to all the features/functionalities of the software or just a portion of them. Also SaaS can be defined as the SaaS model as on-demand software and/or on-demand application.
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