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What is SaaS?

1. SaaS Definition and Features​

SaaS (Software as a Service) is a model in which software and applications are delivered over the cloud. Users can access these services via the internet without needing to install or maintain the software locally. Key features of SaaS include:

  • Subscription-Based Model:
    Users pay a recurring fee, reducing the need for large upfront investments.

  • Always Up-to-Date:
    Updates are handled by the provider, ensuring users always have access to the latest features.

  • Multi-Tenant Architecture:
    Multiple users (tenants) share the same infrastructure, leading to greater cost efficiency.

2. Difference from Package Software​

Compared to traditional packaged software, SaaS differs in the following ways:

  • Deployment Method:
    While packaged software requires installation, SaaS can be accessed immediately via a web browser.

  • Updates and Maintenance:
    With SaaS, updates are managed on the provider’s side, eliminating the need for users to handle them manually.

  • Cost Structure:
    SaaS typically involves lower upfront costs, and operational expenses are included in the subscription, leading to improved cash flow.

With the rise of cloud computing and the widespread use of mobile devices, businesses increasingly demand flexible IT infrastructure. SaaS has gained attention for the following reasons:

  • Flexible Scalability:
    Resources can be scaled up or down quickly according to usage needs.

  • Reduced Operational Burden:
    The service provider handles tasks such as security, updates, and backups.

  • Ease of Global Deployment:
    SaaS applications can be accessed by users around the world via the internet.