SaaS (Software as a Service)
Software as a Service (SaaS) is a software delivery model where applications are hosted by the vendor on cloud infrastructure and accessed by customers over the internet through a web browser or API, on a subscription basis, without requiring local installation or server management. SaaS has become the dominant model for enterprise CRM deployment because it eliminates the capital expense of on-premise infrastructure, accelerates time-to-value by removing installation and configuration complexity, and ensures that all customers are always on the current software version. For buyers evaluating enterprise CRM, the SaaS model also shifts cost structure from upfront license purchases to predictable annual subscription fees, a change that simplifies budgeting and makes it easier to scale user counts up or down as the business evolves.
SaaS, software as a service, delivers software over the internet on a subscription rather than a one-time license, with the vendor hosting and maintaining it. The model shifted the vendor relationship from a single sale to an ongoing one, since revenue depends on renewal. That shift is why customer success, retention metrics, and churn became central, and why most modern CRM is itself delivered as SaaS.
Frequently Asked Questions
Software as a service, software delivered over the internet on a subscription, with the vendor hosting and maintaining it rather than the customer installing it.