Software as a Service (SaaS)

  • Definition: Provider offers ready-made application for direct use
  • Customer manages: Minimal application settings only
  • Provider handles:
    • Code writing/maintenance
    • Updates
    • Platform integration
    • Automated scaling
  • Key aspects:
    • Business model based on subscription
    • Providers offer services cheaper than self-supported
    • Companies reduce IT overhead through outsourcing
    • Tradeoff: Companies no longer own their software
  • Example: Salesforce
    • Integrated platform for business operations
    • Replaces spreadsheets, to-do lists, email
    • Backed by elastic cloud services
    • Scales with company growth
    • Tiered pricing based on features