Software as a Service (SaaS) or on-demand software is a software distribution model where the vendor hosts an application online, and consumers access it via the internet on a subscription basis. SaaS is one of the three main categories of cloud computing. The other two are Platform as a Service (PaaS), and Infrastructure as a Service (IaaS).

The global SaaS market is expected to reach about £130 billion by 2020. The SaaS industry is steadily growing as it continues to attract more business and vendors alike. This distribution model presents several advantages to the consumer and a vastly lucrative opportunity to the vendor. Let’s look at why businesses are ditching conventional software products in favour of SaaS.


Companies today rely on several business software applications to keep going. The costs of these applications add up, and they’re often not cheap. SaaS minimises the cost of digital resources by a huge margin. Businesses only pay for the features they need during a specific use period. The business does not own the software, and there is no need to buy a licence.

In addition, the SaaS provider is responsible for maintaining the service and linking it to computing hardware. This further cuts the cost by eliminating the need for IT support and expensive equipment.


As businesses grow, their demands for digital processing also increase. With a SaaS application, it is easy to scale the services to match the level of demand. Various features in the application can be added or unlocked by simply changing the SaaS subscription package. This flexibly enables businesses to maximise their use of the application by carefully managing their preferences.

Compatibility and accessibility

Since SaaS applications are hosted online, they can be accessed from anywhere in the world. Moreover, SaaS services are generally available over a wide range of devices. This opens up many convenient opportunities for businesses. For instance, a remote worker can share data on the software, and even while travelling, one can still keep track of business operations.

Summing up

Businesses are always looking for high-performance and affordable digital solutions that meet their organisational needs. Cloud-based applications distributed through the SaaS business model seem to hold the answer. The diversity of SaaS application is limitless. With time, consumers will be able to access just about any service through SaaS.