SaaS (Software as a Service)
SaaS is a software distribution model where applications are hosted in the cloud and accessed via the internet on a subscription basis, rather than being installed locally on individual computers.
Software as a Service (SaaS) is a delivery model where software is centrally hosted by a provider and made available to customers over the internet, typically through a web browser. Instead of buying software licenses and installing programs on your computer, you subscribe to a service and access it online. SaaS has transformed how businesses use software.
SaaS replaces this with a monthly or annual subscription, automatic updates, and no installation required. Examples of SaaS are everywhere in modern business: Salesforce for CRM, Slack for communication, Zoom for video conferencing, QuickBooks Online for accounting, Shopify for e-commerce, HubSpot for marketing, and Google Workspace for productivity. Each of these runs in the cloud and is accessed through a browser.
In practice
- A small accounting firm replaced their $15,000 on-premise software installation with a $50/month cloud accounting SaaS, getting automatic updates and access from anywhere
- A retail chain manages all 50 locations through a SaaS point-of-sale system, with real-time inventory sync and centralized reporting accessible from their phone
- A startup launched their SaaS product with 10 beta customers and grew to 5,000 subscribers in two years, each paying $99/month, creating $500K in monthly recurring revenue
- A construction company uses project management SaaS to coordinate 200 subcontractors across 30 active job sites, replacing spreadsheets and phone calls
Not sure how this applies to you?
A senior engineer walks your site, your search presence and the way enquiries reach you, then writes down the three things worth fixing first. You keep the document either way.