Software-as-a-Service – also known by its acronym SaaS – refers to cloud computing-based service packages for application software provision, with application software that benefits companies and organizations in implementing their internal processes. The associated provision services are offered and delivered by specialized providers via the internet (based on existing internet infrastructure).
Comparison of the software license model with Software-as-a-Service
In the traditional license model, IT infrastructure, solution development, and software together represent a complex, expensive, and risky investment. The customer acquires the software and thus obtains the license to use the software. The provider supplies the customer with an installation package. For installation, a dedicated IT infrastructure (hardware, operating system, database, etc.) is required. After installation, the software is configured according to business requirements. Upon completion of the software implementation, the company takes over the operation of the IT infrastructure and the associated IT tasks. In a professional environment, the license purchase is often associated with a maintenance contract, which in turn includes follow-up costs. These include the installation of new releases and the correction of software errors. The basic idea of SaaS is similar to that of an energy supply company.
More detailed conceptual definitions
The SaaS model is based on the principle that the software and IT infrastructure are operated by an external IT service provider and used by the customer as a service. To use online services, an internet-capable computer and an internet connection to the external IT service provider are required. Access to the software is usually realized via a web browser.[1] The service user pays a usage fee for the use and operation. Through the SaaS model, the acquisition and operating costs are therefore allocated to the service user according to the principle of ‘pay as you use’, with the service provider usually independently assuming complete IT administration and other services such as maintenance work and software updates. For this purpose, the IT infrastructure, including all administrative tasks, is outsourced, and the service user can concentrate on their core business. However, the ultimate responsibility for proper use and implementation by the service provider remains with the service user.
More detailed conceptual definitions
The SaaS model is based on the principle that the software and IT infrastructure are operated by an external IT service provider and used by the customer as a service. To use online services, an internet-capable computer and an internet connection to the external IT service provider are required. Access to the software is usually realized via a web browser.[1] The service user pays a usage fee for the use and operation. Through the SaaS model, the acquisition and operating costs are therefore allocated to the service user according to the principle of ‘pay as you use’, with the service provider usually independently assuming complete IT administration and other services such as maintenance work and software updates. For this purpose, the IT infrastructure, including all administrative tasks, is outsourced, and the service user can concentrate on their core business. However, the ultimate responsibility for proper use and implementation by the service provider remains with the service user.
