Software-as-a-Service (SaaS) is a software licensing model in which access to the software is provided on a subscription basis, with the software being located on external servers rather than on servers located in-house. Software-as-a-Service is typically accessed through a web browser, with users logging into the system using a username and password. Instead of each user having to install the software on his computer, the user is able to access the program via the internet” (Investopedia). “In this web-based model, software vendors host and maintain the servers, databases, and code that constitute an application” (Software Advice). “SaaS applications are also known as web-based software, on-demand software, and hosted software” (Wikipedia).

“As with other cloud services, organizations typically pay for SaaS through a subscription fee, on a monthly or annual basis. This contrasts with the traditional model of paying for software through a perpetual license, with an upfront cost and optional ongoing support fee” (InfoWorld).

“SaaS has enjoyed a good deal of popularity, as it has many inherent advantages. These include:

More from the data glossary

A definitive guide to data definitions and trends, from the team at Stitch.

Give Stitch a try, on us

Stitch streams all of your data directly to your analytics warehouse.

Set up in minutes Unlimited data volume during trial 5 million rows of data free, forever