Software-as-a-Service (SaaS) is a model where users access software through a web browser or app, typically on a subscription basis, without needing to install or maintain anything locally.
Why It Matters
- Enables recurring revenue through subscriptions instead of one-time sales
- Lowers user entry barriers by avoiding setup, installation, or hardware dependency
- Simplifies deployment and updates — all users access the latest version instantly
- Scales easily across geographies and devices
Use This Term When...
- You’re building a product that users will access via login or cloud
- You’re discussing monetisation via subscriptions or tiered pricing
- You’re planning updates that should roll out to all users at once
- You’re designing for multi-tenant architecture or user-specific dashboards
- You’re exploring B2B, productivity, or analytics-focused apps
Real-World Example
In one of our projects, we developed a SaaS platform with multi-tenant architecture and subscription-based billing. This model allowed the client to scale rapidly, onboard new customers efficiently, and generate recurring revenue with minimal operational overhead.
Founder Insight
SaaS is more than a delivery model — it’s a business strategy. Pricing, churn, onboarding, and UX all need to work together to maximise long-term value.
Key Metrics / Concepts
- Monthly Recurring Revenue (MRR) – Predictable monthly income from subscriptions
- Customer Lifetime Value (CLTV) – Total value a user brings over their relationship with your product
- Churn Rate – Percentage of users cancelling their subscription
- Activation Rate – How quickly users get value from the product after signing up
- Net Promoter Score (NPS) – A measure of user satisfaction and loyalty
Tools & Technologies
- Stripe / Chargebee – For managing SaaS billing and subscriptions
- AWS / Google Cloud – To host scalable SaaS platforms
- Intercom / Zendesk – For onboarding, customer support, and retention
- Mixpanel / Heap – To analyse user behaviour and improve engagement
What’s Next / Future Trends
SaaS is moving toward AI-powered automation, self-serve analytics, and greater personalisation. Expect more vertical SaaS (built for specific industries), usage-based pricing, and integrated ecosystem features as the space matures.
Related Terms
Platform-as-a-Service (PaaS) – Underlying infrastructure that supports SaaS
Subscription Model – Revenue model most SaaS businesses rely on
App Maintenance – Critical for SaaS reliability and uptime
Cloud Computing – The backbone technology behind SaaS delivery
Onboarding – A key process to activate and retain SaaS users
Helpful Videos / Articles / Pages
Blog: Web App or Mobile App? What’s the Best Choice for Your Business
Blog: What to Look For in an Enterprise Web Application
Call to Action
Thinking of launching a SaaS product? Book a discovery call and we’ll help you validate the model, build the platform, and plan for scale.