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DEFINITION

Software as a Service (SaaS)

Software as a service or SaaS is a cloud-based software delivery model where instead of installing and maintaining software on individual devices, software providers “rent” their software to their clients.

In other words, instead of buying the software and hosting it locally, clients pay to gain access to the provider’s cloud and then access the software on demand via a web browser. This eliminates the need for complex infrastructure management and offers scalability to its users.

Synonyms

On-demand software

Acronyms

SaaS

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Synonyms

On-demand software, subscription-based software

Acronyms

SaaS

Examples

Atfinity allows clients to connect to our Atfinity Cloud. This means that they can take full advantage of our software and use it to onboard customers, perform KYC, and other key processes without having to manage the software infrastructure. Instead, this is all handled by Atfinity and the client just has to access our software through their browser by logging into their account.

FAQ

Traditional software requires installation on individual devices and often involves upfront licensing costs. SaaS on the other hand is accessed via the internet and commonly follows a subscription-based pricing model, eliminating the need for installation, maintenance, and large upfront costs.

Both Banking as a Service (BaaS) and Software as a Service (SaaS) are used to offer businesses added functionality. However, the two “offer” very different things. Namely, BaaS offers a bank’s infrastructure in order to perform actions such as payment processing. SaaS on the other hand offers a specific software solution, for example an onboarding system.

SaaS relies on the internet, so outages can disrupt access to critical applications. Data security and privacy concerns can also be present if the software provider doesn’t have a robust security framework in place.

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