What is SaaS?
Software-as-a-Service (SaaS) is a cloud-based model that provides the option for IT organizations to bypass the hosting or managing of their own systems. Instead, they can rely on the cloud to help them execute important initiatives for customers.
The acronym first appeared in 1985, but the concept of centralized hosting for business applications dates back to the 1960s.
Why Does it Matter?
The SaaS model is typically on a pay-as-you-go subscription basis, so it is a cost-effective model that allows organizations to spend only on what they use. SaaS is growing in popularity as technology continues to evolve, and gives users access to sophisticated technology, accessible from anywhere.
Software engineer and author John Belamaric explains, “SaaS allows you to ‘buy’ your applications - you do not even need to deploy or manage them at all. This is a steady progression of decreasing control and complexity, while increasing direct business value.” SaaS keeps things simple and adds clear value for businesses and customers.