What is SaaS

There are two primary kinds of software: On-Premise and SaaS.

On-Premise software like Legacy requires local servers/computer equipment and is licensed on a perpetual license model, which means the buyer owns the license. There are usually additional maintenance and support fees which are charged annually for this type of license. The buyer would also have to purchase and maintain the servers/computer equipment necessary to run the software.

SaaS stands for Software as a Service and refers to software which is cloud-based, meaning you access it through the internet, and licensed on a subscription basis. SaaS subscription licenses usually include any maintenance and support fees in the cost of the subscription. One significant benefit of SaaS is the ability to spread the cost out over time instead of the large, up-front costs of On-Premise software. The only equipment required to access SaaS is a device which can access the internet.

SaaS is hosted centrally by the software developer and accessed remotely via internet by the subscribers. Subscribers do not have offline access to SaaS software as they may have with On-Premise software.