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Glossary

SaaS (Software as a Service)

SaaS (Software as a Service) is software you use through the internet on a subscription, rather than buying and installing it yourself. The provider handles hosting, updates and security; you pay per user or per usage, usually monthly or yearly.

Key Facts

ExamplesZoho, HubSpot, Google Workspace, Shopify, Freshdesk, Razorpay dashboard
Pricing modelsPer user per month, per usage (messages, orders), or tiered plans
Key contract pointsData export, uptime commitment, price increases, where data is stored
Hidden costSpend grows quietly as users and tools accumulate

Why SMEs choose SaaS

  • Quick to start, with no servers to manage.
  • Updates and security handled by the provider.
  • Predictable monthly cost.

The trade-offs

  • You fit your process to the product, not the other way round.
  • Costs rise with users; five tools at modest prices add up.
  • Your data lives with the vendor: check export options before you sign.

See SaaS spend audit and build, buy or extend.

Frequently Asked Questions

Is SaaS cheaper than custom software?

Usually at the start. Over several years, with many users or heavy customisation, custom software can cost less and fit better.

Who owns data in a SaaS tool?

Normally you do, but check the terms for export formats, retention after cancellation and where data is stored.

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