Software as a Service (SaaS)
Software as a Service (SaaS) is a licensing and distribution model in which a third-party provider hosts applications that clients can access over the internet. It is sometimes described as “on-demand software” or “software plus services.”
SaaS is an increasingly popular approach for procuring business applications, including productivity software, customer relationship management (CRM) systems, enterprise resource planning (ERP) systems, human resources tools and design software.
When compared to traditional on-premises models, SaaS provides numerous benefits, including:
- Lower installation and maintenance costs
- More configuration options for users
- Faster, more frequent software updates
- Simplified and accelerated collaboration
However, SaaS can carry an increased risk of disruption due to its reliance on internet connectivity. In addition, adopting any cloud-based model introduces new data security needs.
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