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Software as a Service (SaaS) is a software delivery and licensing model in which applications are hosted by a third-party provider and made available to customers over the internet. Users typically access SaaS applications through a web browser, with authentication and data stored in the cloud. Pricing is usually subscription-based, often with tiers that reflect different levels of usage, features, or support.

Key characteristics include multi-tenancy, where a single instance of the software serves multiple customers; centralized maintenance and updates managed by the provider; scalable resources to accommodate growth; and automated backups and security measures handled by the vendor. SaaS applications often integrate with other services through APIs and can be accessed across various devices and locations.

SaaS is one of the layers of cloud computing, positioned above infrastructure as a service (IaaS) and platform as a service (PaaS). It is commonly deployed in public clouds, but can also be offered as private or hybrid cloud services to support specific security, compliance, or customization needs.

Benefits of SaaS include lower upfront costs, reduced IT burden, rapid deployment, automatic updates, scalability, and predictable budgeting. Drawbacks can include dependence on internet connectivity, potential data security and compliance concerns, vendor lock-in, and limited customization compared to traditional on-premises software.

SaaS is widely used across industries for productivity, collaboration, customer relationship management, accounting, and specialized business applications. Notable examples include Salesforce, Google Workspace, Microsoft 365, and various industry-specific systems. The field continues to evolve with increased AI capabilities, vertical SaaS offerings, and stronger emphasis on data portability and security. See also cloud computing, subscription software, and API integration.