Saas

    Glossary

    SaaS

    Software as a Service (SaaS) is a software delivery model in which the customer accesses an application over the internet, typically paying a recurring subscription, with the vendor handling hosting, updates, and infrastructure.

    Compared with traditional on-premise software (where the customer buys a perpetual licence and runs the software on their own servers), SaaS shifts: capital cost to operating cost, infrastructure responsibility from customer to vendor, upgrade cadence from periodic releases to continuous deployment. SaaS is now the dominant model for B2B software — most UK SME software (Xero, Salesforce, HubSpot, Microsoft 365, Google Workspace) is SaaS.

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