Definition #
Software delivery model where applications are hosted centrally and accessed via web browsers on a subscription basis.
Key Characteristics #
- Multi-tenant architecture
- Automatic updates/patches
- Usage-based billing
- API-first design
Why It Matters #
Reduces upfront IT costs by 90% while enabling 99.9% uptime (Gartner 2024).
Common Use Cases #
- Enterprise CRM systems
- Collaboration platforms
- Vertical-specific business tools
Examples #
- Salesforce Sales Cloud
- Zoom Meetings
- Shopify e-commerce platform
FAQs #
Q: How does SaaS differ from traditional software?
A: No local installation required - accessed via web with continuous updates.
Q: Data security concerns?
A: Reputable providers offer SOC 2 compliance and encryption at rest/in-transit.