By IT Brew Staff
less than 3 min read
Definition:
Software-as-a-service (SaaS) is a cloud-based software delivery model in which third-party vendors make applications and services available to end users via the internet, usually on a subscription basis.
Key takeaways
Before the rise of cloud computing and high-speed internet, users generally needed to install software and services on local drives. Now, third-party software vendors can use software-as-a-service (SaaS) to deliver applications and services to their customers via the cloud. The vendor generally manages everything about the software, including data storage, updates, and security; all the user needs to do is log in and use the product.
For end users (and the IT pros managing those end users), SaaS offers some key advantages. In the old days, IT pros had to regularly update software, purchase and configure hardware to run that software, and set aside significant budget for periodic upgrades and new releases. With SaaS, the vendor handles the updates, and cloud-based software will generally run on any machine that can open a web browser.
In addition, most SaaS vendors charge on a subscription basis, which means IT pros and their companies can predictably budget their software spend on a month-by-month basis; if they need to add more users to the license, that’s often an easy process.
If there’s a downside to SaaS, it’s the risk of “sprawl,” which is when organizations take an undisciplined approach to onboarding and maintaining SaaS subscriptions. For example, multiple teams and individuals might subscribe to various SaaS services without letting their managers or IT administrators know, leading to redundant subscriptions, security issues, and wasted budget.

