Based on the definition in Webopedia - SaaS (Software as a Service) is a software delivery method that provides access to software and its functions remotely as a Web-based service. Software as a Service allows organizations to access business functionality at a cost typically less than paying for licensed applications since SaaS pricing is based on a monthly fee.
SaaS brings an interesting benefit for organizations on hardware front, since the software is remotely hosted the need for investment in additional hardware is eliminated or reduced to great extent. Another typical benefit that SaaS brings to the table is related to the setup, keep it up and running, and day-2-day maintenance costs. It is understood that some of these costs would be absorbed in the monthly fees towards the company that provides the services (SaaS), the benefits still outshine the monthly subscription/usage fees.
Another typical definition of Saas is related to Storage as a Service, where organizations or businesses rent or lease the storage space from a third-party vendor/provider.
The key question though is for the organizations that currently have heavy investments into hardware and software for running the day-2-day operations. How would these organizations be able to take the advantage of cloud-based services (SaaS)?
“Mozy has a customers ranging from General Electric to the home office, but the fastest growing segment is small business,”
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- Cloud Computing SaaS And Web Applications Specialist Level Complete Certification Kit - Software As A Service Study Guide Book And Online Course - Second Edition