What is SaaS? Software as a service guide

Most teams now manage their work from inside their browser. This might be using a CRM to do sales calls or send emails, or managing projects directly in a built-for-purpose management platform.

SaaS (Software as a Service) is the model that refers to these kinds of programs. Instead of buying a software package, which can date quickly and only store your information on one computer, SaaS programs are cloud-based platforms that handle storage, security, and updates automatically for you. They are typically offered as a subscription rather than a one-off purchase.

In this guide, you’ll learn how SaaS platforms typically work, how they compare to other cloud models, and how modern businesses use them.

• What is SaaS?
• The history of SaaS
• 7 key features of modern SaaS products
• SaaS pricing models explained
• What’s the difference between SaaS, PaaS and IaaS?
• 5 reasons why you should use a SaaS-based CRM
• How to choose the right SaaS CRM for your business
• The future of SaaS
• Why businesses choose SaaS
• SaaS FAQ's

SaaS (Software as a Service) is a delivery model where software runs in the cloud and you can access it through the internet. The SaaS provider manages all the security, storage, and updates, while you pay a subscription to use the software.

Here are the key characteristics that make SaaS unique:

• On the cloud: Your application will run on the provider’s servers and can be accessed through the internet. This might be on your browser or on a desktop app you can download.
• Subscription pricing: Users pay monthly or annually rather than buying the software outright.
• Works anywhere: The software can be accessed from any device, anywhere in the world, with an internet connection.
• No maintenance: Your provider will make updates to improve the product, handle all the security, and manage the software's infrastructure.
• Simple to add more people: Often, SaaS platforms are priced by ‘seat’, also known as the number of users and sometimes tiered by features. This makes your pricing fair if you're a small business with only a couple of people, but also allows you to easily add people or features as you grow.

As you can see, the SaaS model differs from traditional software that you need to purchase and install yourself.

Here are some of the most popular SaaS applications as of 2026:

• Google Workspace: Provides productivity tools like Gmail, Docs, Sheets and Drive for simplified, collaborative work across teams.
• Salesforce: A CRM platform that helps businesses manage customer relationships, sales, analytics, and marketing, among other capabilities.
• Trello: A visual task management tool that enables team collaboration and project tracking.
• Zoom: Delivers video conferencing and online meeting services.
• DocuSign: Facilitates electronic signature and document management
• Slack: A communication platform that enables real-time messaging, file sharing, and collaboration.
• Canva: A design platform that lets users create graphics and presentations with a range of helpful templates.

SaaS is a relatively new concept in software delivery, but its roots go back to the mainframe era of the 1960s and 1970s, when computer terminals accessed centrally hosted applications.

The modern SaaS model didn’t appear until the late 1990s and early 2000s, when reliable internet access made it possible to deliver software through the browser rather than installing it on individual devices. Early SaaS tools included web-based email, CRM systems, and project management platforms.

Salesforce was one of the first major SaaS applications. Launched in 1999, it offered a fully web-based CRM that helped businesses manage customer relationships at scale.

These early applications faced challenges like slow internet speeds and limited bandwidth, but adoption grew as infrastructure improved and cloud computing matured. Remote servers, cheaper storage, and faster networks made SaaS easier to deploy and far more cost-effective than traditional on-premises software.

Several developments over the last decade have accelerated the growth of the SaaS delivery model. Here are some of the key factors that have shaped its rise:

1. Increased adoption: SaaS has become the dominant model for delivering software applications. Many organisations have shifted from traditional on-premises software to cloud-based SaaS solutions.
2. Cloud infrastructure: Cloud infrastructure has become more robust, with the major cloud providers (AWS, Microsoft Azure, Google Cloud) investing heavily in expanding their cloud services.
3. Mobile-first approach: With the increased usage and importance of mobile devices, SaaS providers continue to adopt a mobile-first approach.
4. Artificial intelligence (AI): SaaS providers are leveraging AI to provide advanced functionality, such as predictive analytics, natural language processing (NLP), and machine learning (ML).
5. Platformisation: SaaS providers have moved beyond providing standalone applications to creating platforms that enable third-party developers to build and deploy their applications on top of the SaaS infrastructure.
6. Integration: SaaS providers increasingly provide integrations with other applications and services, making it easier for users to connect and share data.
7. Data security: Security has become a top priority for SaaS providers, who strongly focus on providing leading-edge security features such as encryption, authentication, and access controls.

Modern SaaS platforms are designed to be easy for any business to pick up and start using. The following features are things you can expect across most modern SaaS platforms:

Most SaaS applications run in the cloud and can be accessed through the internet, usually in a browser or on a desktop app. Since all the data from the platform is hosted centrally, users always get the latest version of the software.

Since SaaS tools are accessed over the internet, employees can log in from any location or device with an internet connection. Due to this, SaaS has been a mainstay in remote or hybrid working environments as it allows people to take their work anywhere they go. It’s also great for teams working in different locations, as the data put in from one office will instantly update in the other.

A major advantage of SaaS is that the provider is in charge of maintaining the infrastructure, performance, updates, and security of the platform. This means you don’t need to hire an internal IT team to manage servers, perform manual patches, or troubleshoot when things go wrong.

SaaS products are typically offered on a subscription basis, which removes large upfront software purchases. Costs are also spread out over time; you only pay for the users or features you need, and there's no need to pay for ongoing maintenance, because the provider handles that.

Quality SaaS providers will always invest heavily in security and compliance. This often includes encryption, access controls, continuous monitoring, and adherence to global standards. For many organisations, this level of protection can exceed what they could manage independently.

SaaS products are designed to keep everything connected, no matter where or when the work is being done. This means that teams can share files, track progress, and work in real time together. Most modern SaaS tools also include APIs and native integrations that allow data to flow across all the systems they use. This is great for visibility and saves teams time inputting data across different systems.

Having access to state-of-the-art AI is now one of the huge benefits users get from working with major SaaS providers. Many platforms now have built-in features that would be near impossible for a business to build themselves, like predictive analytics, workflows, natural language search, sentiment analysis, or personalised sales, marketing, and service functions.

SaaS products are usually sold through flexible subscriptions that let businesses pick and choose the number of people and which features they need.

Using a subscription model spreads the costs of using the platform to a monthly or annual payment. This makes it easier for users to budget, upgrade, and adjust their plan as needed.

Below is a simple overview of the most common pricing approaches from SaaS applications.

As well as SaaS, you may have heard of PaaS and IaaS. Here are the key differences between the three service models.

1. SaaS (Software as a Service): SaaS provides fully functional applications through a web browser. The provider manages the application and all underlying infrastructure, including networks, servers, and storage. Users access the software without installing or maintaining anything themselves.
2. PaaS (Platform as a Service): PaaS offers a cloud-based platform for developers to build and deploy applications. It provides frameworks, tools, and development support while the provider manages the servers and networking.
3. IaaS (Infrastructure as a Service): IaaS delivers virtualised computing resources over the internet. Users control operating systems, applications, and data, while the provider manages the physical infrastructure.

These distinctions help determine the right cloud service based on business needs, technical skills, and resources. SaaS is best for ready-to-use solutions, PaaS for rapid app development, and IaaS for customisable IT infrastructure.

If cost reduction and business growth are priorities, a SaaS CRM gives your team the tools to work faster and stay connected without the overhead of traditional software.

Here are five key reasons why a SaaS based CRM might be the best choice for your business:

A SaaS CRM gives sales teams a clear view of every lead, from first enquiry through to closing. Reps can see who’s engaged, who needs a follow-up, and where each opportunity sits in the pipeline, which helps them prioritise the conversations that matter most.

Since both teams work from the same system, sales can instantly see which campaigns prospects came from, what content they engaged with, and what they are most interested in.

Automated journeys help marketing send relevant emails, reminders, and offers without manual work. For sales teams, this means prospects stay warm between touchpoints.

Instead of scattered spreadsheets and outdated notes, all customer information sits in one central platform. Sales reps can quickly access key details, past interactions, and account history, which helps them tailor their approach.

A SaaS CRM stores every interaction, email, call note, and meeting in one place. When a rep picks up the phone or joins a call, they have the full context in front of them, making it easier to have well-informed conversations that feel personal.

Choosing a SaaS CRM doesn’t need to be complicated. Here are some tips to help your business find the best CRM for your needs.

• List the tasks your team struggles with most. For example, keeping track of leads or following up with prospects. This gives you a clear set of ways you could use a CRM to improve.
• Ask your sales and service teams what slows them down. Their answers usually point to the features that will be most useful to them day-to-day.
• Note down which tools you already use (email, calendars, marketing tools) and make sure the CRM you pick integrates with them.
• Shortlist three CRMs based on features, pricing, and ease of use.
• Book a demo for each CRM, but request a walkthrough using your workflows, not generic examples.
• Run a quick team trial to see how easily reps can navigate the system without training.
• Compare total cost across tiers, including what you’ll pay as your team grows or needs more features.

If you're looking for a place to start, why not try the world's number one CRM, Salesforce? Our Salesforce Starter package brings sales, service, and marketing tools together into one place, and you can try it free for 30 days.

There are now many SaaS platforms that are intelligent and industry-specific, and they continue to automate more of the work teams do every day. Key trends shaping the future of SaaS include:

• AI-driven personalisation: SaaS tools are now able to tailor dashboards, recommendations, and workflows based on each user’s behaviour.
• Autonomous agents: Instead of waiting for human prompts, AI agents are able to complete tasks and collaborate with other systems in the background.
• Vertical SaaS: More industry-specific platforms will emerge, offering built-in compliance, tailored features, and workflows designed for sectors like healthcare, finance, retail, and government.
• Stronger security: As cyber threats grow, SaaS providers will continue to deliver deeper real-time threat detection, tighter identity controls, and stronger data governance.
• Data-as-a-Service (DaaS): More providers will offer direct access to real-time, actionable data without the need for internal infrastructure, helping teams make faster, more informed decisions.