What is SaaS (Software as a Service)? Everything You Need to Know

What is software as a service?

Software as a service (SaaS) is a software distribution model in which a cloud provider hosts applications and makes them available to end users over the internet. In this model, an independent software vendor (ISV) may contract a third-party cloud provider to host the application. Or, with larger companies, such as Microsoft, the cloud provider might also be the software vendor.

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SaaS is one of three main categories of cloud computing, alongside infrastructure as a service (IaaS) and platform as a service (PaaS). A range of IT professionals, business users and personal users use SaaS applications. Products range from personal entertainment, such as Netflix, to advanced IT tools. Unlike IaaS and PaaS, SaaS products are frequently marketed to both B2B and B2C users.

How does software as a service work?

SaaS works by providing users with access to software applications hosted on the cloud provider’s servers. Users access the software application via a web browser or a dedicated app, and the software and data are hosted on the cloud provider’s infrastructure.

In the SaaS model, users pay a subscription fee to access the software application. The subscription fee covers the cost of using the software and the maintenance of the underlying infrastructure. The cloud provider takes care of software updates, security, and availability, which relieves the burden of maintenance from the software vendor and the end-users.

List of Key Companies Covered in this Report:

• Salesforce (U.S.)
• Zuora (U.S.)
• LinkedIn (U.S.)
• Microsoft Inc. (U.S.)
• Concur Technologies (U.S.)
• Medidata Solutions (U.S.)
• Workday, Inc. (U.S.)
• Oracle Corporation (U.S.)
• IBM Corporation (U.S)
• NetSuite Inc. (U.S.)
• ServiceNow, Inc. (U.S.)
• Google Inc. (U.S.)

North America is ruling the product as an assistance market because of different factors. For example, the worldwide players are giving the upper hand to North American nations, rich media outlets, and high reception of on-request programming.