Short for
Software as a Service, SaaS is a
software delivery method that provides access
to software and its functions remotely as a Web-based service. SaaS allows
organizations to access business functionality at a cost typically less than
paying for licensed
applications since
SaaS pricing is based on a monthly fee. Also, because the software is hosted remotely, users don't need to invest in additional
hardware. SaaS removes the need for organizations to
handle the installation, set-up and often daily upkeep and maintenance. Software
as a Service may also be referred to as simply
hosted applications.
See related term ASP.