Software as a service (SaaS/sæs/) is a software licensing and delivery model. Software is licensed on a subscription basis and is centrally hosted. It is sometimes referred to as “on-demand software”. It was formerly referred to as “software plus services” by Microsoft. SaaS applications are also known as on-demand software and Web-based/Web-hosted software.
Solution providers who develop industry best practices become trusted business advisors. Their intellectual capital in software can deliver their “Service as Software” in a repeatable fashion. In addition they are providing enhanced value-added customizations to their clients. Thus, industry best practices are reflected as customizations and extensions, seamlessly integrated into the enterprise business management suite.