Software as a service

Software as a service (SaaS) is a delivery model in which a provider hosts an application and users access it over a network, typically through a browser or app.

Cloud computing: A model for providing computing resources over a network on demand. SaaS is the application layer of a broader model that also supplies storage and computing power.
Customer relationship management: A discipline and software category for managing customer interactions, sales, and related business data. Salesforce made CRM a defining SaaS category for many businesses.
On-premises software: Software installed and operated on an organization’s own computers or infrastructure. Unlike SaaS, this model leaves hosting and much of the maintenance with the customer.
Subscription business model: A business model that charges recurring fees for continued access to a product or service. Recurring subscriptions commonly replace large upfront software purchases in SaaS.
Multi-tenant architecture: A software architecture in which one running system serves multiple customers while keeping their data logically separate. Many SaaS providers share application infrastructure across customers to reduce operating costs.
Enterprise resource planning: Integrated software for managing an organization’s core processes, such as finance, procurement, and inventory. Cloud-hosted ERP applies the SaaS model to interconnected business operations.
Platform as a service: A cloud service that provides a managed environment for developing and running applications. PaaS supplies a platform for building software; SaaS supplies finished applications for use.
Vendor lock-in: Dependence on a supplier that makes switching to another provider costly or difficult. Stored data, integrations, and workflows can make leaving a SaaS provider burdensome.
Application programming interface: A defined interface through which software systems exchange requests and data. APIs let SaaS applications connect to customers’ other systems and services.
Google Workspace: Google’s subscription suite of hosted productivity and collaboration applications. Its browser-accessible documents and email illustrate SaaS used directly by individuals and teams.

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