SaaS or Software As A Service Software is rented rather than purchased. Instead of buying applications and paying for periodic upgrades, SaaS is subscription based, and upgrades are automatic during the subscription period.
Companies, both large and small, are increasingly using the pay-as-you-go model where all kinds of software-billing, CRM, customer service etc. is hosted on the cloud and operated by third parties. This frees them up from concentrating on core business functions.
- Lower upfront cost in the form of monthly subscriptions
- Lower total cost of ownership because of zero maintenance costs
- Improve workforce efficiency and collaboration because everything is on cloud
- Eliminate the need for disaster recovery plans