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SaaS World

DEFINITION of SAAS Software as a Service may become one of the most important developments in the software industry. The characteristics for SaaS are:

  • Software is provided over the Internet and hosted with a hosting entity
  • The provided service accepts your data and manages your data and processes in the respective software.
  • The user does not have to take care of hardware infrastructure, data backup, software updates etc.
  • In contrast, a website or an e-commerce software which somebody just consumes is not considered Software as a Service, unless that software has an API and can be used by a third party for their own purposes
  • And finally Software as a Service is typically paid in a annual, quarterly or monthly cycle - not as a perpetual license.
  • Unlike software leasing, the service provider owns the software, guarantees to manage it and allows users to use it for a given timeframe. While a leased software is owned by the leasing company and exclusively used by the leasee.
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