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Software as a service (SaaS) (also known as subscribeware or rentware) is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted. It is sometimes referred to as "on-demand software", and was formerly referred to as "software plus services" by Microsoft.
SaaS applications are also known as Web-based software, on-demand software and hosted software. The term "software as a service" (SaaS) is considered to be part of the nomenclature of cloud computing, along with infrastructure as a service (IaaS), platform as a service (PaaS), desktop as a service (DaaS), managed software as a service (MSaaS), mobile backend as a service (MBaaS), datacenter as a service (DCaaS), and information technology management as a service (ITMaaS).
SaaS apps are typically accessed by users using a thin client, e.g. via a web browser. SaaS has become a common delivery model for many business applications, including office software, messaging software, payroll processing software, DBMS software, management software, CAD software, development software, gamification, virtualization, accounting, collaboration, customer relationship management (CRM), management information systems (MIS), enterprise resource planning (ERP), invoicing, human resource management (HRM), talent acquisition, learning management systems, content management (CM), geographic information systems (GIS), and service desk management. SaaS has been incorporated into the strategy of nearly all leading enterprise software companies.
According to a Gartner estimate, SaaS sales in 2018 were expected to grow 23% to $72 billion.
Local software (commonly used as an enterprise, installed instead of "locally") is installed and run on computers in the person or organization’s buildings that use the software, rather than as a remote facility such as servers or the cloud. Local programs are sometimes referred to as "shrinkwrap", and external programs are called "programs as a service" ("SaaS") or "cloud computing."
It is the opposite of SaaS