BeCodeBeCode
Back to the glossary
Development

SaaS

Software as a service

SaaS (Software as a Service) is a model in which software runs in the cloud and you use it over the internet for a recurring fee instead of a one-off purchase. Nothing is installed or managed on your own server; the provider takes care of operation, updates, and backups.

How the SaaS model works

With SaaS you don’t buy the software but pay for access to it, usually as a monthly or annual subscription. The application runs on the provider’s servers and you use it through a browser or an app. That removes installation, maintenance, and any worry about the technical backend.

The provider handles everything technical: servers, security, backups, and the rollout of new features. Users always have the latest version with nothing to update. Well-known examples of SaaS are invoicing tools, CRM systems, and online office suites.

Why companies choose SaaS

SaaS lowers both upfront cost and risk. Instead of a large one-off investment, you pay as you go and can start using the software almost immediately. The solution also grows with the company: when users or needs increase, you simply adjust the scope of the subscription.

For companies that want to offer software instead, SaaS is a proven business model. We build your own product as custom software development that you deliver as a service with recurring subscription revenue, manage from one place, and gradually extend with features for all customers at once.

  • A recurring fee is paid instead of a one-off purchase.
  • Available over the internet with no installation or own servers.
  • Updates, backups, and security are handled by the provider.
  • The scope can easily be adjusted to the company’s growth.

Want to build your own SaaS product?

See our custom development

Frequently asked questions

What is the difference between SaaS and traditional software?

Traditional software is bought and installed on your own device or server, and you maintain it yourself. SaaS is used online for a recurring fee, and the provider takes care of operation, updates, and security.

Who owns the data in a SaaS application?

The data remains yours; the provider only stores it on their infrastructure. When choosing a solution, it is wise to check the terms for storage, security, and the option to export your data at any time.

Is it worth developing our own SaaS product?

If you have an idea that solves a specific problem for multiple customers, SaaS can be a strong model with recurring revenue. It is usually advisable to start with a smaller version, validate interest, and expand the product gradually.

Related terms

No commitment

Tell us what you're working on.

Write a few lines about your company and what's holding you back. We'll get back within 24 hours with a concrete proposal and price.