SaaS (Software as a Service)

SaaS (Software as a Service) is a delivery model where a vendor hosts an application and customers use it through a browser or API, usually by subscription, without installing or maintaining the software.

Why it matters

SaaS removes the work of servers, updates and scaling from the customer. Examples include email, CRM, accounting and project management tools. It also changes risk: when the vendor is down, you are down, and you cannot fix it yourself.

Because of that, SaaS buyers should check the vendor's uptime commitments, status page and data export options.

Example

A team uses a hosted project tool at a monthly per-user fee. A new feature appears without any action on their side. When the vendor has an incident, the team checks the vendor's status page for updates instead of restarting anything.

Common mistakes

• Assuming the vendor's SLA covers your losses; most credits are limited to a fee refund.
• Not planning for data export before you need to leave the vendor.
• Relying on a single SaaS tool for a critical process with no fallback.

Related

• sla
• status-page
• PaaS (Platform as a Service)
• IaaS (Infrastructure as a Service)

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