Software as a Service

Software-as-a-service (SaaS) is a licensing model where clients access and use cloud-based software applications, usually on a subscription basis. The software itself is located on external servers and accessed via the internet. Google Docs is a typical example of a no-cost SaaS.

Traditionally, consumers and businesses purchased software as a standalone product. The software was either installed on the user’s computer or an in-house server; upfront costs could be prohibitive, especially if multiple licenses were required. The purchaser/user was solely responsible for installing the program, keeping track of updates, applying patches, and so forth.

With SaaS products, the vendor provides and maintains the software for their subscribers, guaranteeing that users are always working with the most up-to-date product. Other advantages are less need for high-end hardware and universal accessibility through a web browser or through an app.

Potential disadvantages include slower speeds and lack of control, which could present security risks.