Cloud Computing

SaaS

Definition

Software as a Service (SaaS) is a software distribution model in which a third-party provider hosts applications and makes them available to customers over the Internet. It eliminates the need for organizations to install and run applications on their own computers or in their own data centers.

Why It Matters

SaaS has made sophisticated software accessible to everyone through a subscription model, without the need for complex installation or maintenance. It is the most common cloud service model for end-users.

Contextual Example

Google Workspace (Gmail, Google Docs), Salesforce, and Dropbox are all examples of SaaS. You access the software through a web browser or mobile app, and the provider manages everything, including the application, data, and infrastructure.

Common Misunderstandings

  • With SaaS, the user has the least amount of control. You are simply using a finished product.
  • It is typically priced on a per-user, per-month subscription basis.

Related Terms

Last Updated: December 17, 2025