What is SaaS?

SaaS stands for Software as a Service. It’s a type of cloud computing where a business provides and hosts a software product for a customer. The software could be used for customer relationship management (CRM), accounting, sales management, databases, knowledge documentation, and much more. The SaaS model is provided to the customer through an internet connection and is often accessed through a web browser.

Pricing of SaaS services is generally based on the number of users, transactions, or another measurable parameter. An advantage to this, over traditional software pricing, is that there isn’t a large up front fee to purchase the software package. Additionally, the customer does not need to install the software so they do not have to bear the cost of the infrastructure used to maintain it nor the personnel to maintain it.

There are hundreds of SaaS providers including Google, DropBox, Microsoft, Aha!, MailChimp, and Zoom. Salesforce.com is an example of an SaaS provider. They provide many types of software, including CRM, customer support, and sales management. As with many SaaS platforms the business offers a degree of customization and can combine their systems to create a platform to accommodate most customers needs.