The Ultimate Guide to Software-as-a-Service
2022 edition
Overview

Also known as SaaS.

This blanket term describes software which isn’t purchased outright by users, but instead licensed on a monthly or other periodic basis. Generally, the licensor is the software vendor (creator and owner of the intellectual property) but not always. For example, a distributor or reseller can license the software as a service to the user, typically acting as an agent between the user and the vendor, and taking a percentage of the periodic fee.

Software as a Service, or SaaS, has advantages including lower distribution costs, lower initial purchase price, more frequent updates, greater flexibility, and a shift from (high) capital expenditure to (regular) operational expenditure, the latter of which also has tax advantages. Disadvantages include the potential for vendor lock in, and a recurring cost which can in due course result in a higher overall cost of ownership.

Top players
You can read more from the top players TechnologyOne, Amazon Web Services, Microsoft, Micro Focus, and Varonis.
Other guides
Powered by
Want your brand on this page?