SaaS stands for Software as a Service, and it’s transformed how businesses use technology. Rather than buying software on a CD and installing it on every computer, SaaS delivers applications over the internet on a subscription basis.
Think of Netflix for business software. You don’t own the movies on Netflix; you pay monthly for access to them. Similarly, with SaaS, you don’t own the software; you rent access to it. Gmail, Salesforce, Slack, Zoom, and Shopify are all examples of SaaS applications.
Companies love SaaS for several reasons. There’s no expensive upfront licensing fee or hardware to buy, making it accessible even for startups. Updates happen automatically without IT teams needing to install patches on hundreds of computers. Employees can access these tools from anywhere with an internet connection, which has become essential in remote work environments. The subscription model also makes costs predictable and allows businesses to scale up or down as needed.
For vendors, SaaS means continuous revenue and the ability to rapidly improve their product. For users, it means always having access to the latest features without the headache of traditional software management. It’s become the dominant model for business software, and that trend shows no signs of slowing down.