SaaS (Software as a Service)
What is SaaS?
Software as a Service (SaaS) is a cloud-based software delivery model where applications are hosted online by a service provider, and customers access these applications via the internet, typically through a subscription. Unlike traditional software that requires installation on individual systems, SaaS delivers software centrally, allowing users to log in and utilise the product from any device with an internet connection.
Key takeaways
Subscription-based model
SaaS offers software on a recurring subscription, often monthly or annually, making it accessible to a broader range of users and organisations.
Cloud-hosted, no installation
SaaS applications run on the provider’s servers, eliminating the need for local installation or complex IT infrastructure.
Easy access and scalability
Users can scale service levels up or down as needed, with immediate updates and no downtime for upgrades. All features and data are accessible wherever there is internet connectivity.
Simplified maintenance
Vendors handle all software maintenance, updates, security patches, and backups, ensuring customers always have access to the latest features with minimal effort.
Why SaaS matters?
SaaS has transformed the way organisations use and pay for software. It shifts the burden of infrastructure and IT management to the provider, enabling fast adoption, cost savings, and agility. Rapid deployments, predictable billing, and seamless access to new features all support the business need for innovation and speed.
Lower upfront costs
There’s no need for large, one-time licensing fees or expensive on-premise hardware. Users pay for what they need, when they need it.
Flexibility and speed
Businesses can quickly test, adopt, and retire applications, supporting agile approaches and rapid business pivots.
Focus on core operations
Since the SaaS provider manages the infrastructure, companies can focus more on core value-driving activities instead of IT support or server maintenance.
Why automation matters in SaaS?
SaaS businesses increasingly rely on automation at every step — from customer onboarding to billing and support. Automation reduces manual errors, accelerates product updates, and ensures customers get immediate value with minimal friction.
Automated provisioning
New users and features can be deployed instantly, making scaling up or down fast and reliable.
Billing and support
Recurring billing, renewal reminders, and customer support can all be handled through automated workflows, saving time and minimising mistakes.
Real-time analytics
Automated data collection and reporting provide customers and providers with instant insights into how the service is being used, enabling fast decisions and continuous improvement.
Disclaimer: The information provided in this business glossary is for educational purposes only and should not be considered as financial advice. Always consult with qualified financial professionals before making investment decisions.
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Table of Contents
What is SaaS?
Software as a Service (SaaS) is a cloud-based software delivery model where applications are hosted online by a service provider, and customers access these applications via the internet, typically through a subscription. Unlike traditional software that requires installation on individual systems, SaaS delivers software centrally, allowing users to log in and utilise the product from any device with an internet connection.
Key takeaways
Subscription-based model
SaaS offers software on a recurring subscription, often monthly or annually, making it accessible to a broader range of users and organisations.
Cloud-hosted, no installation
SaaS applications run on the provider’s servers, eliminating the need for local installation or complex IT infrastructure.
Easy access and scalability
Users can scale service levels up or down as needed, with immediate updates and no downtime for upgrades. All features and data are accessible wherever there is internet connectivity.
Simplified maintenance
Vendors handle all software maintenance, updates, security patches, and backups, ensuring customers always have access to the latest features with minimal effort.
Why SaaS matters?
SaaS has transformed the way organisations use and pay for software. It shifts the burden of infrastructure and IT management to the provider, enabling fast adoption, cost savings, and agility. Rapid deployments, predictable billing, and seamless access to new features all support the business need for innovation and speed.
Lower upfront costs
There’s no need for large, one-time licensing fees or expensive on-premise hardware. Users pay for what they need, when they need it.
Flexibility and speed
Businesses can quickly test, adopt, and retire applications, supporting agile approaches and rapid business pivots.
Focus on core operations
Since the SaaS provider manages the infrastructure, companies can focus more on core value-driving activities instead of IT support or server maintenance.
Why automation matters in SaaS?
SaaS businesses increasingly rely on automation at every step — from customer onboarding to billing and support. Automation reduces manual errors, accelerates product updates, and ensures customers get immediate value with minimal friction.
Automated provisioning
New users and features can be deployed instantly, making scaling up or down fast and reliable.
Billing and support
Recurring billing, renewal reminders, and customer support can all be handled through automated workflows, saving time and minimising mistakes.
Real-time analytics
Automated data collection and reporting provide customers and providers with instant insights into how the service is being used, enabling fast decisions and continuous improvement.
Disclaimer: The information provided in this business glossary is for educational purposes only and should not be considered as financial advice. Always consult with qualified financial professionals before making investment decisions.
Get paid globally. Keep more of it.
No FX markups. No GST. Funds in 1 day.