We've seen or heard someone use the term SaaS in the context of an IT business or software, and this acronym 'SaaS' expands to software as a service. This concept is not new to us, but the term may be.
We use plenty of software through a browser that's connected to the Internet. Gmail, Google Drive, or FaceBook are examples of applications we use while connected to the Internet. SaaS is a way of delivering software applications over the Internet when we need them.
Once upon a time, we had to install software on our computers to use it. We could buy software on discs that came in boxes wrapped in plastic. Even business organisations had to install software on every computer they had in the office. As we got faster access to the Internet, we could do much more than view content on a browser. People like us and businesses started using a lot of software delivered over the Internet on a browser. Whereas some services popular among individual users are free to use, many software applications designed for businesses require a licence fee for every user. Not every company could afford the hefty licence fees and the investment in the hardware. This upfront investment is the problem that SaaS attempts to solve as a concept.
As companies looked to save costs, the subscription model made it affordable because they only had to pay for monthly usage based on requirements. They could save data on the cloud (remote server, that a service provider manages).
SaaS is a subset of cloud computing. Cloud computing is a broader concept that involves delivering software over the Internet and providing computing and data storage services from different locations.
SaaS has enabled start-ups to compete on an equal footing with larger companies. It promises to unleash innovation rapidly as high costs of acquiring software and hardware are no longer a barrier for good ideas to find successful adoption.