Software as a Service or more popularly known by its acronym SaaS; is basically a method for software delivery that allows access to software and its functions even from a remote place via web based services. To put it into simpler terms, SaaS is a software distribution model in which vendors or service providers host the applications so as to make it available to their customers through a network, more preferably the internet. SaaS aka On-Demand; eradicate the need for an organization to deal with the set-up, installation and daily upkeep and maintenance of the same. SaaS is particularly effective in lowering the costs of business solution tenure as it provides the organization an access to business functionality at a cost normally far cheaper than a licensed application fee which is possible due to its monthly fees based revenue model. Thus it helps in predicting costs over period thereby allowing companies to let their focus remain fixed on providing their customers with its core services and products. Performance, improved security and enhanced scalability with access to data anytime, anywhere via an internet browser are some of the additional benefits that comes in handy with SaaS. There is also no need for additional investment on hardware too as the software is hosted remotely ‘in the cloud’.

On demand flexibility in comparison to On premise systems is one of the most fundamental features of the SaaS from the perspective of business. Small businesses that often face capital restraint can look upon SaaS model as a low cost business solution with value deliverance at par with quality; only provided by either expensive IT infrastructure implementations or home based IT solutions. The cost of technology ownership is thus reduced drastically by Software as a Service (SaaS) which also at the same time empowers the SMBs and Enterprises to re-allocate their assets for building their product and its brand rather than software.