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SaaS - Software as a Service

3 min read

Quick Summary

SaaS delivers software applications over the internet, eliminating the need for local installation and maintenance.

Software as a Service (SaaS) is a cloud computing model where software applications are hosted by a vendor/provider and made available to customers over the internet. Users access the software via web browsers rather than installing it locally.

Characteristics of SaaS

  • Web-based access
  • Subscription pricing
  • Centralized hosting
  • Automatic updates
  • Multi-tenancy architecture
  • Accessibility from anywhere

Popular SaaS Examples

Category Examples
CRM Salesforce, HubSpot
Communication Slack, Zoom, Microsoft Teams
Productivity Google Workspace, Notion
Finance QuickBooks, Stripe
Infrastructure AWS, Vercel, Twilio

SaaS Architecture

  • Multi-tenancy: Single codebase serves multiple customers (tenants)
  • API-first: Designed for integration
  • Zero-downtime deployments: Continuous updates
  • Scalability: Handle growing user base

SaaS Business Models

  • B2B SaaS (enterprise tools)
  • B2C SaaS (personal productivity apps)
  • API-first SaaS (backend services)
  • Vertical SaaS (industry-specific)

Key Points

  • Software hosted on cloud
  • Accessed via web browser
  • Subscription pricing model
  • No local installation needed
  • Automatic updates
  • Multi-tenant architecture

Frequently Asked Questions

What is multi-tenancy in SaaS?

How is SaaS different from traditional software?