• phil@stroudy

What is SaaS?

Updated: Apr 17, 2020

This is a question we get asked by customers, most of which are probably using SaaS applications and don't realise it. Sounding a bit alien, Software as a Service (SaaS) applications, can also be referred to as Web-based software, on-demand software and hosted software.

So why not just call it software?....well actually they're not the same at all.

Microsoft Office is a great example of the difference between "SaaS" and "software".

You can still buy the Office suite (Word, Excel etc.) on a perpetual licence that you own forever. This is the software that we have become used to over the years.

Alternatively you can pay for Office 365 on a monthly or yearly basis which gives you access to the software for as long as you pay for the licence to it. Office 365 is SaaS, and has it's own merits just as perpetual licencing does.

In uncertain times like these the benefits of SaaS become clear due to it's low setup cost and flexibility, having said that, it's not right in every situation. Much of the software we use today is available on both models and it's often difficult to decide which option fits best with your current infrastructure and the direction you plan to take your business.

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