Product management glosary


What is SaaS?

Software as a Service (SaaS) is a cloud-based software delivery model where software applications are hosted by a third-party provider and made available to customers over the internet. SaaS is a popular delivery model for business applications because it eliminates the need for organizations to install and maintain software on their own servers and computers.

How does SaaS work?

SaaS providers host and maintain the software applications on their own servers, which are accessible to customers over the internet. Customers access the software through a web browser or a mobile app, and pay a subscription fee to use the software. The SaaS provider is responsible for maintaining the software, ensuring its availability, and providing customer support.

What are the benefits of SaaS?

SaaS offers several benefits to businesses, including:

  • Lower costs: SaaS eliminates the need for businesses to invest in hardware, software, and IT infrastructure, which can be expensive to purchase and maintain.
  • Scalability: SaaS allows businesses to easily scale their software usage up or down based on their needs, without having to invest in additional hardware or software.
  • Accessibility: SaaS applications can be accessed from anywhere with an internet connection, making it easy for remote workers to access the software they need.
  • Easy updates: SaaS providers are responsible for updating and maintaining the software, which means businesses don't have to worry about installing updates or patches themselves.

What are some examples of SaaS?

There are many examples of SaaS applications, including:

  • Customer relationship management (CRM) software: Salesforce, HubSpot, and Zoho are all examples of SaaS CRM software.
  • Human resources (HR) software: BambooHR, Zenefits, and Gusto are all examples of SaaS HR software.
  • Project management software: Asana, Trello, and Basecamp are all examples of SaaS project management software.
  • Accounting software: QuickBooks Online, Xero, and FreshBooks are all examples of SaaS accounting software.


SaaS is a popular software delivery model that offers many benefits to businesses, including lower costs, scalability, accessibility, and easy updates. With the rise of cloud computing, SaaS is becoming increasingly popular among businesses of all sizes and industries.