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On-Demand Software

Definition - What does On-Demand Software mean?

On-demand software is a type of software delivery model that is deployed and managed on a vendor’s cloud computing infrastructure and accessed by users over the Internet as and when required. On-demand software enables a user/organization to subscribe to software on a pay-as- you-go, monthly billing method.

On-demand software is also known as Software as a Service (SaaS), online software and cloud-based software.

Techopedia explains On-Demand Software

On-demand software provides the same or enhanced capabilities compared to on-premises software but the main benefit is that companies don't have to buy their own software. The customer pays a flat monthly fee to use the software and can decommission services anytime. On-demand software also eliminates the need for in-house server hardware and other operational expenses, as well as the staff required to manage the software. The on-demand software can be accessed anytime globally from the Internet in a standard Web browser on most end devices such as computers, tablets and smartphones. The vendor, in turn, is responsible for ensuring the software’s availability, back-end security and management and versioning control.
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