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SaaS (Software as a Service)

SaaS is a software distribution model where applications are hosted in the cloud and accessed via subscription, eliminating the need for local installation.

Why It Matters

SaaS enables recurring revenue, automatic updates, and accessibility from any device—making it the most profitable software business model.

When to Use This

  • Subscription-based web applications
  • Multi-tenant platforms serving multiple customers
  • Products with automatic updates and maintenance
  • Scalable software without customer infrastructure

Examples

Related Terms