SaaS (Software as a Service) is originally referred as the Application Service Provider (ASP) model by the International Data Corporation (IDC) or it is sometimes called "'on-demand software"' which enables entities to access a complete business software functionality on a cloud based application.

The Software & Information Industry Association (SIIA) defines SaaS as an application or service deployed in a centralized data center across a network such as the Internet, Inranet, LAN or VPN.[1] Users maybe able to access the SaaS through subscription or by renting it from a vendor or service provider.

Delivery Models for SaaS

SaaS are delivered in different ways such as:[2]

  1. Cloud Based SaaS Delivery Model- Vendors offer software service at a hosted ISV data center such as cloud computing platforms on a monthly subscription
  2. Hybrid SaaS Delivery Model- Software applications are hosted by SaaS vendors on a multi-tenanted application wherein a separate database is located in every tenant company. This delivery model is normally used by companies with database security or compliance issues with government regulations
  3. On-Premises SaaS Delivery Model-the software applications are oftentimes delivered by vendors to its the customers personal servers or through the appliances provided by the vendors which runs under a firewall.
  4. Platform as a Service (PaaS) based SaaS Delivery Model- software applications are delivered via platforms such as the as the Force.com offered by Salesforce.com

Benefits from SaaS Model

Users of SaaS enjoy the benefits of:[3]

  • easier administration
  • automatic updates
  • patch management
  • software compatibility
  • easier collaboration
  • global accessibility
  • faster software modifications
  • cheaper and more affordable software services

References