What is SaaS

Software as a Service is a model of software deployment where an application is hosted as a service provided to customers across the Internet.  By eliminating the need to install and run the application on the customer’s own server/infrastructure, SaaS alleviates the customer’s burden of software and hardware maintenance, ongoing operation, and support.  Conversely, customers relinquish control over software versions or changing requirements; moreover, costs to use the service become a continuous expense, rather than a single expense at time of purchase.

Using SaaS also can conceivably reduce that up-front expense of software purchases, through less costly, on-demand pricing.  SaaS lets software vendors control and limit use, prohibits copies and distribution, and control all derivative versions of their software.  This way, end users may reduce their investment on server hardware.