Definition
SaaS, short for software as a service, is software you access over the internet by subscription, rather than buying, installing, and running it yourself. With SaaS, a provider hosts and maintains the software, and you simply log in and use it, usually paying a regular fee. There is nothing to install or maintain on your end. The provider handles updates, fixes, and the infrastructure behind the scenes. This model transformed how software is sold and used, and most modern business tools, from email to design to analytics, are now delivered as SaaS.
SaaS matters because it changed software from something you bought and owned into something you subscribe to and access, which reshaped the entire software industry. This page explains what SaaS is, how it works, why it took over, how it differs from traditional installed software, and the trade-offs of the model.
What SaaS is
SaaS is software delivered as an online service rather than a product you install. A provider runs the software and makes it available over the internet, and you access it through a browser or app, typically paying a subscription to use it for as long as you need.
The defining idea is that the software is a service, not a thing you own. You do not buy and install it once. You subscribe and use it, while the provider takes care of running, maintaining, and improving it behind the scenes.
How SaaS works
The provider hosts the software on their own infrastructure and makes it available online. You sign up, log in, and use it, with everything running on the provider's side. You do not install or maintain anything, and you can usually access it from anywhere with an internet connection.
The provider handles everything behind the scenes: updates, fixes, security, and the infrastructure that keeps it running. New features and improvements appear automatically, and you always use the current version, without ever having to upgrade or maintain the software yourself.
Why SaaS took over
SaaS removed the burden of buying, installing, and maintaining software. Companies can simply subscribe and start using a tool, with no setup or upkeep, and pay over time rather than a large amount upfront. That ease and lower barrier made adopting software far simpler.
It also benefits providers, who get steady, recurring revenue and can improve the software continuously for everyone at once. That alignment, easy for customers and sustainable for providers, made SaaS the dominant model, which is why most modern business software is delivered this way.
SaaS vs traditional installed software
| SaaS | Traditional software | |
|---|---|---|
| How you get it | Access online by subscription | Buy and install it yourself |
| Maintenance | The provider handles it | You handle it |
| Updates | Automatic, always current | You upgrade manually |
| Cost | Ongoing subscription | Larger upfront purchase |
The trade-offs of SaaS
With SaaS, you depend on the provider. Because the software runs on their side, you rely on them to keep it available, secure, and reasonably priced, and you have less control than with software you run yourself. If the provider has problems or changes terms, you are affected.
Ongoing subscriptions also add up, and moving away from a SaaS tool you depend on can be hard once your work lives in it. The convenience is real, but so is the reliance, so choosing SaaS means trusting a provider over the long term. For most needs, the ease outweighs these trade-offs, which is why the model won.
How to think about SaaS
- Value the ease of subscribing instead of installing and maintaining.
- Choose providers you can rely on for the long term.
- Weigh ongoing subscription costs against the convenience.
- Be mindful of depending on a provider and their terms.
- Consider how easily you could move away if you needed to.
Marketing for SaaS companies
Most of the companies Infrasity works with are SaaS businesses, and the SaaS model shapes how they grow: through subscriptions, retention, and helping customers continually find value. Content plays a central role in attracting, converting, and keeping subscribers.
Infrasity creates content that supports the full SaaS journey, from drawing in the right customers to helping them succeed and stay. For a subscription business, that ongoing relationship is everything, and good content is part of what sustains it.
Frequently Asked Questions
What is SaaS?
It is software as a service, software you access over the internet by subscription rather than buying, installing, and running it yourself. A provider hosts and maintains it, and you simply log in and use it. Most modern business tools, from email to analytics, are now delivered as SaaS.
How is SaaS different from traditional software?
Traditional software is bought and installed, and you maintain and upgrade it yourself. SaaS is accessed online by subscription, with the provider handling maintenance, updates, and infrastructure, so it is always current. SaaS trades a larger upfront purchase for an ongoing subscription.
What are the trade-offs of SaaS?
You depend on the provider to keep the software available, secure, and fairly priced, with less control than running it yourself. Ongoing subscriptions add up, and moving away can be hard once your work lives in a tool. For most needs, the ease outweighs these trade-offs, which is why SaaS won.
Related terms
B2B SaaS, Infrastructure SaaS, Monthly Recurring Revenue (MRR), Product-Led Growth (PLG), Churn Rate