SaaS (Software as a Service)

SaaS, or Software as a Service, is software hosted in the provider's cloud that you use through a browser or app and pay for as a recurring subscription (monthly or annual). The provider handles hosting, updates, backups and security, so you do not run any servers yourself.

Most business tools today are SaaS - CRMs, accounting, payments, email and more. The trade-off versus on-premise software is lower upfront cost and zero maintenance, in exchange for an ongoing fee and trusting the vendor with uptime and your data.