Looking at the growth rate of the SaaS industry, you’d think that people are more than willing to spend money on software solutions that promise to make their everyday lives (and professional endeavors) easier. Not quite, though. Despite projections forecasting the total SaaS spend to reach $171.9 billion in 2022, most buyers still prefer free solutions. […]
What is SaaS?
Software-as-a-Service (SaaS) is a software distribution model where the application is owned and managed by a SaaS provider, hosted in the cloud, licensed to customers on a subscription basis, and accessed over the Internet.
In the early days of application proliferation, investing in new software meant purchasing a physical copy of the software (often on a CD-ROM) and installing the application on your own hardware (a computer or server). New software investments came with significant management and technical overhead, including hardware acquisition, provisioning and maintenance, as well as license management, technical support, installing patches, and managing upgrades.
Software-as-a-Service removes the need for users and organizations to install and run applications on their own devices. In doing so, SaaS providers have absorbed much of the cost and complexity associated with managing software solutions, making it cheaper and easier than ever before for users and organizations to adopt their products.