SAAS stands for Software as a service. It is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted. An internet hosting service is a service that runs internet servers, allowing organizations and individuals to serve content to the internet. There are various levels of service a common kind of hosting is web hosting. They offer a combination of services.
It is sometimes also known as “On Demand Software”. It is accessed by users using a thin client via a web browser. A thin client is a computer or computer program that depend heavily on another computer to fulfill its computational roles.
It allows organizations to access business functionality at a cost typically less than paying for licensed applications since SAAS pricing is based on a monthly fee. Because, the software is hosted remotely, users don’t need to invest in additional hardware. It removes the need for organization to handle the installation, set-up, often daily upkeep and maintenance. It may also be referred as simply hosted applications.
It is based on a Multitenant Architecture. A multitenant architecture, in which all users and applications share a single common architecture and code base that is centrally maintained.
It provides easy customization that is it enables the user to easily customize applications to fit their business processes without affecting the common infrastructure.
SaaS is closely related to the ASP (application service provider) and on demand computing software delivery models. IDC identifies two slightly different delivery models for SaaS. The hosted application management (hosted AM) model is similar to ASP: a provider hosts commercially available software for customers and delivers it over the Web. In the software on demand model, the provider gives customers network-based access to a single copy of an application created specifically for SaaS distribution.