SaaS is a software delivery method that provides access to software and its functions remotely as a Web-based service

Short for Software-As-A-Service, SaaS 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.

Also, because the software is hosted remotely, users don't need to invest in additional hardware. Software-As-A-Service removes the need for organizations to handle the installation, set-up and often daily upkeep and maintenance. Software-As-A-Service may also be referred to as simply hosted applications.

SaaS applications are often updated more frequently than traditional software, in many cases on a weekly or monthly basis. This is enabled by several factors:

• The application is hosted centrally, so an update is decided and executed by the provider, not by customers.
• The application only has a single configuration, making development testing faster.
• The application vendor does not have to expend resources updating and maintaining backdated versions of the software, because there is only a single version.
• The application vendor has access to all customer data, expediting design and regression testing.
• The solution provider has access to user behavior within the application (usually via web analytics), making it easier to identify areas worthy of improvement.

Accelerated feature delivery is further enabled by agile software development methodologies.