WHAT IS SaaS?

Software as a service (or SaaS) is a way of delivering applications over the Internet—as a service. Instead
of installing and maintaining software, you simply access it via the Internet, freeing yourself from complex
software and hardware management.  SaaS applications are sometimes called Web-based software,
on-demand software, or hosted software. Whatever the name, SaaS applications run on a SaaS provider’s
servers. The provider manages access to the application, including security, availability, and performance. 

SaaS: The Payoff

SaaS customers have no hardware or software to buy, install, maintain, or update. Access to applications is
easy: You just need an Internet connection. 

SaaS Characteristics

A good way to understand the SaaS model is by thinking of a bank, which protects the privacy of each
customer while providing service that is reliable and secure—on a massive scale. A bank’s customers all use
the same financial systems and technology without worrying about anyone accessing their personal
information without authorization.