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Software as a Service, commonly abbreviated as SaaS, is a software distribution model where a third-party provider hosts applications and makes them available to customers over the internet. This means that instead of installing and maintaining software on individual computers or servers, users can access it through a web browser or a dedicated application. The service provider manages all aspects of the software, including infrastructure, maintenance, and updates.

Customers typically access SaaS applications on a subscription basis, paying a recurring fee for the service. This can be a monthly or annual payment. This model offers several advantages, such as lower upfront costs compared to traditional software purchases, easier scalability to meet changing business needs, and the ability to access applications from any device with an internet connection. Updates and bug fixes are also handled by the provider, ensuring users are always working with the latest version of the software without manual intervention. Common examples of SaaS include email services, customer relationship management (CRM) tools, and online office suites. The underlying infrastructure, such as servers and databases, is managed by the SaaS provider, freeing users from these IT responsibilities.