Software as a Service (SaaS)

Definition - What does Software as a Service (SaaS) mean?

Software as a Service (SaaS) is a model for the distribution of software applications as a service, usually via the Internet.

SaaS benefits include:

  • Easy, efficient administration
  • Automatic updates and patch management (managing code changes)
  • Software compatibility between users and different applications
  • Pay-as-You-Go (PAYG) or free downloads
  • Easily handles increasing work (scalability)
  • Collaboration facilitation, security, reliability and global accessibility
Software as a Service is also know as hosted software or hosted service.

Techopedia explains Software as a Service (SaaS)

SaaS is a natural evolution of computer science trends. As user demand for services broadens, the availability of frequency and channel bands is ever widening. Broadband technologies pave the way for Web services, service-oriented architecture (SOA) and the development of user-friendly interactive applications (via tools like Ajax). These are critical factors, especially with increased user reliance on computers and the Internet.

Today, SaaS provides a number of common business task solutions, such as document management, accounting software, invoicing, human resource (HR) management, computerized billing, financials, service desk management, content management and collaboration.

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