What is SaaS?

SaaS (Software as a Service) is software delivered over the internet on a subscription basis. Users access it through browsers and pay monthly/annually. Google Workspace, Zoom, Slack — all are SaaS examples.

Advantages of SaaS

Low initial cost: No large license fees
Access anywhere: Works wherever there's internet
Automatic updates: Always the latest version
Scalability: Grow subscription as business grows
Technical support: Provider handles support

How Does the SaaS Business Model Work?

SaaS companies host software on cloud servers. Customers buy monthly or annual subscriptions. This model creates recurring revenue, which is very attractive to investors.