SaaS is one of the most common forms of cloud computing is software-as-a-service (SaaS). Here is a simple definition of SaaS: A software distribution model where a service provider hosts applications for customers and makes them available to those customers online.

SaaS is one of three major cloud services categories, along with Infrastructure as Service (IaaS) and Platform as Service (PaaS).

SaaS Examples

Due to accessibility, the SaaS software delivery model has become common for many types of business applications and has been integrated into the delivery strategies of many enterprise software vendors. SaaS offers a variety of business applications, including e-mail and collaboration, customer relationship management (CRM), billing/payroll processing, sales management, human resources management, financial management, database management, enterprise resource planning (ERP), management content, and document editing and management.

As with other cloud services, organizations typically pay for SaaS applications through a subscription fee, on a monthly or annual basis. This contrasts with the traditional model of paying for the software through a permanent license, with an initial cost and continuous optional support fee.

SaaS pricing

SaaS products are usually priced by service providers based on some type of usage parameter. For example, you may be charged based on the number of people using your app, the number of transactions, or some other usage.

Users usually access applications using a web browser In some organizations, they may also use a senior client station. Most SaaS offerings are based on a multi-tenant architecture, where a single version of the application is used for all clients of the service provider.

Organizations using SaaS applications can change the configuration settings and customize the software, within certain parameters, to meet their own needs. However, they cannot customize their code or features to the same degree that is sometimes possible for enterprise programs that they install locally on users' computers or provide from their data centers.