Software as a Service (SaaS) is a new way of distributing software in which vendors or service providers, instead of selling it to companies, make it available to customers over the internet, using cloud-computing technology. So instead of companies installing software in their own servers, software providers host the software at theirs and just charge them according to the time they spent using it, or a monthly fee.
Here is a video that better explains what is SaaS:
SaaS is becoming increasingly popular, and as the industry develops, more and more companies are dropping older business models in favour of this new technology.
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